WEF: The Role of Equity in Green, Digital Transformations
What is equity in the realms of green and digital transitions?
This question forms the crux of the World Economic Forum’s 2025 report titled Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions.
In collaboration with Deloitte and the Schwab Foundation, the publication explores the extensive impact that social enterprises play in driving more equitable growth in these crucial sectors.
These initiatives closely align with the goals outlined by the United Nations Sustainable Development Goals, focusing on crucial areas such as poverty alleviation, employment creation, reduced inequalities and sustainable community development.
Inside the report
The study delves into the essential role the social economy plays in fostering economic equity during significant global transitions.
- WEF says: “Equality means that we treat everyone equally - each person or group of people is given the same resources and opportunities. Equity means that we provide resources and opportunities that fit the specific needs or circumstances of that person or group, and in that way, we can reach an equal outcome.”
With the world facing rapid green and digital changes, the report highlights the risks of deepening existing inequalities if these transformations aren't managed carefully.
The green shift — centred on decarbonisation and environmental sustainability — could potentially generate US$10.1bn in business opportunities while creating 395 million new jobs by 2030.
Simultaneously, the digital sector contributed more than 15.5% to the global GDP in 2022.
Despite these significant opportunities, not all segments of society reaped the benefits equally, with many facing barriers such as lack of reliable internet access and electricity.
With an estimated 10 million social enterprises worldwide, generating more than US$2tn in annual turnover, these entities prioritise social and environmental impacts above profit.
This approach to business can crucially drive economic equity.
“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.”
Boosting employment and skills
Social enterprises play a crucial role in the social economy by focusing on employment and skill development.
They are projected to train and employ 200 million people, especially those from traditionally marginalised groups, thus addressing gaps in unemployment and skills.
This emphasis on inclusive job creation and training promotes economic growth across a broader societal spectrum, bridging disparities prevalent in the green and digital economies.
Advancing affordable and accessible solutions
The report highlights how social enterprises enhance the availability of essential, affordable products and services.
Employing innovative technology, tiered pricing and circular economy strategies, these organisations help extend the advantages of the green and digital shifts to a wider population.
This strategic focus is vital in reducing inequality and elevating life quality among disadvantaged communities.
Fostering financial inclusion and influencing policy
Impact investing, microfinance and fintech feature prominently as methods through which nearly US$1.6tn in finance and investments are channelled primarily to underprivileged groups.
Promoting financial inclusion at the grassroots supports sustainable development and helps integrate more people into the green and digital economies.
Additionally, the report outlines several policies governments could enact to bolster the social economy.
These range from crafting dedicated action plans to implementing tax incentives and subsidising key products.
Strong public-private partnerships are also crucial in tackling major transition challenges, allowing for a broader and fairer distribution of transition benefits.
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