SDG series – Cooperative contributions to SDG 10: Reduce inequality within and among countries

Cooperatives turn values into action, creating practical solutions to reduce inequality. In this new edition of Building a Better World Together: Cooperative Contributions to the SDGs, focused on SDG 10 (Reduced Inequalities), the International Cooperative Alliance (ICA), COPAC, Cooperatives Europe, and ICA’s other regional organisations highlight how cooperatives address structural inequalities by expanding access to decent work, essential services, and economic opportunity for marginalised and underserved groups.

Rising Inequalities during times of Social Upheaval

In 2025, the richest 10 percent obtained over 50 percent of global income, while the poorest half received just 8 percent. People also face unequal access to decent work, education, social protection, and political participation; disproportionately impacting women, youth, migrants.  

Despite some regions making progress in poverty reduction, disparities continue to grow within societies and between different areas. As global conflicts intensify and climate threats grow, solidarity and collective action remain essential.

The Cooperative Difference

Cooperatives are uniquely positioned to advance SDG 10 (Reduced Inequalities). As democratic, member-owned enterprises, cooperatives ensure fair distribution of economic benefits and local reinvestment of surpluses. Across sectors, they advance human rights in value chains, support transitions from informal to decent work, and address systemic risks such as child labour and modern slavery.  

By empowering small producers and low-income communities, cooperatives reduce structural inequalities while fostering inclusivity and resilience. 

European Cooperatives in Action: Tackling Inequality Across Sectors

United Kingdom – Combating modern slavery and labour exploitation 
The Co-operative Group has been recognised for implementing robust due diligence on human rights matters. Moreover, in collaboration with NGOs and employers, they provide safe employment, long-term support, and dignified reintegration for survivors of modern slavery. 

Belgium – Fair conditions for freelancers 
The Smart Cooperative in Belgium, rooted in the arts sector, provides over 40,000 freelancers with insurance, collective bargaining, and social protection. As a platform cooperative, it ensures fair wages and prevents value extraction by digital intermediaries. 

Spain – Reducing income inequality through fair wages
The Mondragon Corporation incorporates wage fairness in governance, keeping the highest-paid executive no more than six to nine times the lowest-paid worker, as opposed to the 200–300:1 ratios common in large multinational firms  

Spain – Affordable energy for vulnerable communities 
The Oliver Energy Community aims to make the energy transition accessible to a diverse group of citizens, including the most vulnerable, while reducing energy costs. 

Belgium – Citizen-led renewable energy for social housing 
The Belgian cooperative Klimaan uses citizens investments to finance solar panels on 197 social housing units. Placing social impact over profit, it offers stable and affordable energy prices, thereby supporting low-income households. 

Europe – CECOP-CICOPA promoting inclusive and sustainable growth 
CECOP-CICOPA represents around 43,000 cooperatives including social, and autonomous worker cooperatives. Members combine economic performance with social progress to fight inequalities, support vulnerable groups, and achieve sustainable, inclusive growth across Europe. 

CECOP-CICOPA Members’ activities: 

• Czech Republic – Supporting workers with disabilities 
  SOLEA is a Czech worker cooperative where over 75% of its employees have disabilities. It manufactures plastic and metal components for the automotive, engineering, and electrical industries. 

• Italy – Social and environmental impact through waste management 
  Vesti Solidale manages textile and electronic waste, creating jobs for vulnerable people and promoting environmental sustainability.  

Challenges and Opportunities

Challenges
Despite their impact, cooperatives face a range of challenges.

• Legal and regulatory barriers: existing frameworks are often outdated or poorly aligned with evolving economic needs. 
• Access to finance: Many cooperatives led by vulnerable or marginalised groups face difficulties accessing public and private funding.  
• Social norms and discrimination: Systematic biases and exclusionary practices limit participation and leadership opportunities. 
• Limited data and digital divide: Weak statistical systems fail to capture the cooperative contribution. Limited access to resources makes it challenging for smaller or rural cooperatives to compete in modern markets or reach new members. 

Opportunities
Cooperatives are well-positioned to advance SDG 10, expanding into sectors that directly reduce inequality. 

• Platform and financial cooperatives: As alternatives to extractive models, platform cooperatives ensure that digital profits and decision-making remain with workers and users. Financial cooperatives deliver inclusive services to low-income households and vulnerable groups. 
• Global Recognition: UN resolutions and other intergovernmental outcomes are encouraging a stronger enabling environment for cooperatives.
  

Call to action

The brief calls for governments, UN agencies, and international institutions to take the following actions: 

• Integrate cooperatives into national inequality-reduction and inclusion strategies. 
• Strengthen and modernise legal and regulatory frameworks.  
• Expand inclusive access to finance, insurance, and markets. 
• Strengthen data, partnerships, and international cooperation.
  

Download the full policy brief here
COPAC website

This article has been co-funded by the European Union. The contents of this article are the sole responsibility of  Cooperatives Europe and can in no way be taken to reflect the views of the European Union.