LONDON, July 11, 2023: Twenty-seven global investors managing $2.1 trillion are collaborating to help companies reduce the potential negative impacts of technology on the mental health of their customers, the group’s leaders said on Tuesday.
The group, led by AXA Investment Managers and Sycomore Investment Management, will engage with hardware, media, internet, gaming, software, edtech and telecom firms to ensure they are developing action plans to protect the mental health and wellbeing of consumers, it said in a statement.
The group did not name any tech firms in its statement, but AXA, for example, is a small investor in Alphabet, according to Eikon data.
Screen overuse in the early stages of human development can lead to concentration and behavioural disorders, including depression and isolation, the investors said.
Increasing use of the internet, smartphones, video games, social media and streaming services raises concerns about addiction, while self-esteem and sleep can also be affected, they added.
The investors will guide tech firms to set goals, such as for keeping children safe online, which can be monitored by shareholders. The group would encourage transparency and disclosure around content control.
If the tech firms do not meet expectations, members of the group could choose individually to downgrade their environmental, social and governance (ESG) scores, vote against management during annual general meetings or file shareholder resolutions, said Theo Kotula, ESG analyst at AXA IM and co-chair of the group.
“There is still much to be done and we can accelerate awareness and encourage tech companies to implement concrete action plans to protect users and reduce companies’ long-term ESG risks,” he said in the statement.