Third Sector and Education Strategy Group (ESG) Release New Report on Credentialing Ecosystems
Third Sector and Education Strategy Group (ESG) are proud to announce the release of their new report, “The Future is Portable: Designing Equitable Credentialing Ecosystems.” This timely publication explores the transformative potential of non-degree credentials (NDCs) and digital wallets in advancing economic mobility and equity, while also addressing the challenges that hinder their widespread adoption and impact.
The report highlights how NDCs—such as certificates, certifications, licenses, and badges—are becoming increasingly vital pathways to quality jobs. Yet, today’s credentialing landscape remains fragmented, leaving learners uncertain about which NDCs hold value and employers struggling to decipher their relevance. Digital wallets offer a promising solution, providing a learner-controlled space to store and share verified records of learning and work. When combined with open standards and thoughtful design, digital wallets can significantly enhance credential transparency and learner agency.
This report delves into these opportunities and barriers, offering targeted recommendations and an actionable framework for key stakeholders, including states, employers, institutions of higher education, and learners. It emphasizes that the ecosystem and all stakeholders—not the learner—must adapt to ensure NDCs are clear, accessible, and effective.
The report features insightful case studies from early adopters of NDCs and digital wallets across the country, including Montana’s efforts to expand NDC access in rural and tribal regions, Motlow State Community College’s homegrown approach to integrating NDCs into degree pathways, the Dallas Regional Chamber’s Talent Labs fostering skills-driven talent strategies, and the real-world experiences of learners like Nieves, who stacked credentials to build new opportunities.
These examples demonstrate encouraging progress but also surface persistent challenges: lack of interoperability, inconsistent definitions of credential quality, uneven employer adoption, and limited credential portability across regions and industries. To bridge these gaps, the report proposes three additional cross-cutting recommendations:
- Standardize Language for NDCs and Digital Wallets: Develop and adopt a shared taxonomy and consistent terminology to improve transparency and trust.
- Emphasize Accessibility, Affordability, and Equity in Credentialing: Build equity into system design by funding accessible platforms, embedding culturally responsive models, and vetting credential providers.
- Activate User-Centered Design and Promote Career Advising: Integrate digital wallets into existing learning and career navigation systems and provide advisors with training.
Third Sector and ESG believe that realizing the full potential of NDCs and digital wallets requires coordinated progress on policy, technology, hiring practices, and learner engagement. By aligning efforts and breaking down silos, we can build a transparent, equitable, and skills-based education-to-workforce ecosystem that truly empowers learners and strengthens our economy.
Read the full report to learn more about the recommendations and actionable steps for building a more connected and equitable credentialing future.
Ready to dive deeper? Join us for our upcoming webinar where we’ll discuss the key takeaways from the report and explore what these changes mean for you. Register here today!
