The potential risk of the green and digital transitions widening inequalities is not a peripheral concern. It is set against a backdrop of already widening inequality. There is no region in the world where the poorest 50% of the population own more than 5% of wealth.14 While the full impact of the global pandemic on inequality is still unknown, the International Monetary Fund (IMF) indicates inequality has likely increased in many countries, given the evidence of rising poverty and, simultaneously, rising billionaire incomes.15 While the green and digital transitions did not create these inequalities, data suggests they can exacerbate existing inequalities and leave new groups behind. The acceleration of the digital transformation widens the gap between those with access to digital technologies and those without. New technologies emerge every day, but many communities struggle to access the benefits of these tools. An estimated 2.6 billion people, or one-third of the global population, remained offline in 2023. This particularly concerns women and rural populations.16 Additionally, the growing use of technologies such as AI can accelerate the loss of traditional jobs such as manufacturing while also creating new workforce risks for people earning lower incomes.17 In the US alone, adopting generative AI could automate nearly 10% of tasks, disproportionately affecting lower-wage jobs, which are 14 times more likely to result in job displacement or transition than higher-wage jobs.18 The transition towards a green economy could also significantly impact the labour market, with 78 million workers exposed to job loss by 2030.19 The job loss will likely be concentrated among a subset of mostly low-wage, low-skilled, informal, ageing and rural workers who already feel left behind.20 Lack of access due to cost or infrastructure has impacted communities’ abilities to participate in the green transition. Smallholder farmers, for example, often lack the capital to invest in sustainable farming practices.21 1.1 Origins of equity discussions in the green and digital transitions In the last 50 years, public debate has increased on inequality as a fundamental problem. Discussions around justice in the climate transition started in the 1970s and were shaped by the efforts of labour unions to achieve justice for workers while responding to environmental concerns.22 Since then, there has been a broader emphasis on dialogue and engagement with key stakeholder groups beyond workers and decent jobs. For example, there has been an increasing focus on communities (e.g. loss of land, cultural capital), human rights (e.g. use of child labour in cobalt mining) and broader stakeholder engagement (e.g. representation and inclusivity in decision-making). The public debate about inclusion in the digital transition gained prominence in the late 1990s and early 2000s.23 The term “digital divide” was introduced to highlight disparities in digital access based on socioeconomic status, geography, race and education. Beyond digital access, concerns around privacy, surveillance and representation in the development of technologies have recently increased. Image credit: The Clothing Bank Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions 8

Unlocking the Social Economy 2025