Note: Was going to comment on <PERSON> answer, but Without the 50 reputation yet, I'd like to build off their example of living organisms being a local system with a decrease in entropy, and how this is balanced out.
As <PERSON> pointed out about living organisms:
But although they can reduce entropy locally, they must increase the entropy of their surroundings by at least as much in the process.
This is the crux of your answer. Although a local reduction of entropy does not increase the entropy of it's surroundings, but rather the constant reduction of entropy in the surroundings enable these local low entropy states to exist in order to approach equilibrium. It is crucial distinction to make, between a region of lower relative energy vs. a region who's entropy is constantly being reduced.
The solar system is a great example for visualization purposes, although it is itself a subsystem of a larger system, ad infinitum.
In order for any life on Earth to exist in a manner that reduces entropy; so much so that 7+ billion humans can exist, build cities that remain rigid, and coexist with trillions of other organisms, somewhere outside of the system there must be a region of spacetime with a very high entropy interacting with this system. 943
The sun, a region of very high energy, directly interacts with the Earth. There are no true closed systems.
Aside
I am currently working on a personal theory (inspired by the work of <PERSON> and <PERSON>) that the second law of thermodynamics is the most fundamentally important reason that life exists; that the formation of amino acids, and complex life is a necessary byproduct in every solar system (with the proper precursors) in order to approach equilibrium.
Any solar system as an isolated system (each star is so far apart from the next, it's isolated enough) and entropy cannot decrease over time, even as the entropy of the star is reducing through nuclear fusion. As energy from the star is added to say, the ocean of a planet, the entropy increases locally before being dissipated through the medium. Along the way, areas of uneven energy cause molecules and atoms to organize themselves in a manner which is conducive to (a) the medium of energy, and (b) the manner in which entropy equilibrium is reached (the environment). These reorganized molecules would themselves be local areas of low entropy, further altering the manner in which entropy/energy is dissipated through the system. 943