LONDON (Reuters) – 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, group executives said on Tuesday.
The group, led by AXA Investment Managers and Sycomore Investment Management, will engage with hardware, media, internet, games, software, edtech and telecommunications companies to ensure they build action plans to protect the mental health and well-being of consumers, he said in a statement.
The group did not name any tech companies in its statement, but AXA, for example, is a small investor in Alphabet, according to Eikon data.
Overuse of screens in the early stages of human development can lead to concentration and behavioral problems, including depression and isolation, investors said.
Growing use of the internet, smartphones, video games, social media and streaming services is raising concerns about addiction, while self-esteem and sleep may also be affected, they added. .
Investors will guide tech companies to set goals, such as child safety online, that can be monitored by shareholders. The group would encourage transparency and disclosure around content control.
If tech companies fall short of expectations, group members could individually choose to downgrade their environmental, social and governance (ESG) scores, vote against management at annual general meetings or file shareholder resolutions, said Theo Kotula, ESG analyst at AXA IM. and co-chair of the group.
“Much more needs to be done, and we can accelerate awareness and encourage technology companies to implement concrete action plans to protect users and reduce long-term ESG risks to companies,” he said. he stated in the statement.
(Reporting by Carolyn Cohn, Editing by Sinead Cruise and Devika Syamnath)