WEF: Equity’s Role in the Green & Digital Transformations

What is equity in green and digital transitions? This is one of the first questions set out in the World Economic Forum’s 2025 report – Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions. 

Created in partnership with Deloitte and Schwab Foundation, the report underscores the pivotal role of the social economy in driving equity within the green and digital transitions and explores how through addressing inequality and ensuring more inclusive economic growth, social enterprises are helping to create a more stable and resilient global economy.

This approach aligns closely with the United Nations Sustainable Development Goals, particularly in areas of poverty reduction, decent work, reduced inequalities and sustainable communities.

Inside the WEF report

The report highlights the critical role of the social economy in driving economic equity amidst ongoing global transitions. 

As the world undergoes significant green and digital transformations, the report emphasises that these changes, while offering substantial opportunities, also risk exacerbating existing inequalities if not managed properly.

The green transition, focused on decarbonisation and environmental sustainability, is projected to create US$10.1tn in business opportunities and 395 million new jobs by 2030. 

Meanwhile, the digital economy already accounted for more than 15.5% of global GDP in 2022. 

The benefits of these transitions are not evenly distributed, however, with 2.6 billion people lacking reliable internet access and 760 million without electricity worldwide.

The report emphasises that the social economy, particularly social enterprises, can drive economic equity in these transitions. An estimated 10 million social enterprises globally generate over US$2tn in annual turnover, prioritising social and environmental impact over profit.

“The green and digital transitions are not just about technology—they are about people and their agency to drive change,” says Daniel Nowack, Head of Social Innovation at the Schwab Foundation for Social Entrepreneurship and the World Economic Forum. 

“Social innovation is a tool that allows everyone to be an actor in these massive transformations - not just a subject to them. Social entrepreneurs are leading change by creating resilient jobs, expanding access to essential services, and strengthening the foundations of a fair and equitable economy.”

We’ve highlighted four key areas in the report: 

Employment and skill development

One key area where the social economy contributes to equity is employment and skill development. Social enterprises are projected to train and employ 200 million people from target populations, addressing unemployment and skills gaps, particularly for marginalised groups.

This focus on inclusive employment and training fosters economic growth that benefits a wider range of society, helping to bridge the gap between those who have access to opportunities in the green and digital economies and those who don't.

Affordable and accessible goods and services

The WEF highlights how social enterprises are making essential products and services more affordable and accessible.

Through innovative use of technology, tiered pricing strategies and promotion of circular economy practices, these organisations are ensuring that the benefits of the green and digital transitions reach a broader population.

This approach is crucial in reducing inequality and improving quality of life for marginalised communities who might otherwise be left behind in these transitions.

Financial inclusion

Another significant contribution of the social economy is in the realm of financial inclusion. The report notes that social enterprises are making nearly US$1.6tn in finance and investment available, often to marginalised groups, through impact investing, microfinance, and fintech.

This democratisation of finance supports sustainable development at the grassroots level, enabling individuals and communities to participate more fully in the green and digital economies.

Policy influence and collaboration

The report suggests several policy actions governments can take to advance the social economy. 

These include dedicated action plans, tax incentives, subsidies for essential products and inclusion of social criteria in procurement and investments.

The report also highlights the importance of public-private collaboration in addressing key transition challenges. By implementing these policies, governments can significantly shape the sustainability landscape and ensure that the benefits of the green and digital transitions are more equitably distributed.

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