12 JUL, 2023
By RankiaPro Europe
27 undersigned global institutional investors, representing $2,117 bn in assets under management, have launched a collaborative engagement initiative to help tech companies define policies and implement measures to mitigate the potential negative impact of technology on their end consumers’ mental health and well-being.
Literature shows that screen overuse, in the early stages of human development, can lead to concentration and behavioral disorders, including depression and isolation. The increased use of the internet, smartphones, and media (such as video games, social media, and streaming services) raises concerns about addiction, the symptoms of which include mood swings, conflicts, withdrawal, and relapse. Research also shows that tech impacts well-being: social media can contribute to increased stress and low self-esteem, and exposure to screens and web browsing affects sleep quantity and quality.
To limit this impact, regulations have started to act, and we can see a burgeoning but growing regulatory environment around technology, mental health, and well-being.
Consequently, this newly formed coalition of investors, initiated by AXA IM and Sycomore AM, will engage with companies in the hardware, media, internet, gaming, software, edtech, and telecommunications space to raise awareness and to ensure that tech companies are developing action plans to mitigate end-consumer mental health and wellbeing issues.
The group of investors will guide tech companies to implement good practices such as:
With 27 signatories at launch, the coalition seeks to expand in the coming months with a view to engaging with more companies.
To read the coalition’s full statement of intent, please click here.
By Duncan Lamont
By Gillian Edgeworth