Stockholm (NordSIP) – As digital technology continues to develop and represent and increasing part of our daily lives, its effects and the health and safety of consumers is increasingly paramount on policy-makers’ agenda. One group that is often neglected, children are particularly exposed.
Research suggests that there is an important link between online social media use and youth suicide attempts. Evidence that this impact is due to neglect and carelessness. A 2022 Global Child Forum report on the impact of the practices of Tech & Telecommunication (T&T) companies on children’s rights found this sector lacking in anything beyond commitments. Indeed the report argued that T&T companies focus primarily on adults and that few conduct research and development specifically with children in mind, even though children are consumers of their products.
Politicians have started to take notice. In September 2024, the Swedish Public Health Agency (Folkhälsomyndigheten) issued detailed and age-specific guidance for the use of digital tools, including recommendations that children between the ages of 2 and 5 should not have more than one hour of screen time, a figure that went up to two hours and then three hours for children between the ages of 6 and 12 and 13 and 18, respectively. Last month, reports suggested that the Norwegian government was considering the introduction of an age limit of 15 years for the use of social media. At the start of this month, Australia took the lead and proposed a ban on social media for children under the age of 16. Now, it appears investors are also taking notice.
A New Initiative
On the occasion of the anniversary of the adoption of the United Nations Convention on the Rights of the Child (CRC) and the celebration of World Children’s Day this week, a new initiative from Swedish asset managers has also decided to shed light on this issue.
With the guidance of UNICEF Sverige, Folksam and Danske Bank, alongside other peers in Sweden are seeking to further their understanding of the opportunities and efforts that the tech sector in Sweden is undertaking to address the risks and impacts that their products/services have on the mental health of children.
“To guide our discussions and also support actors in this space in navigating the increasing complexity, we have received support from UNICEF Sverige in identifying the relevant parameters that companies could and should be adopting in their efforts to respect the health and safety of children,” Oshni Arachchi, Head of Active Ownership Head of Responsible Investment (Sweden) at Danske Bank tells NordSIP.
The Sustainable Investment Perspective
Beyond the obvious health and safety issue, there is a business case to be made for why investors should care.
“We have noted the emerging research and increasing scrutiny that public health agencies, such as Folkhälsomyndigheten in Sweden, and have noticed that regulators are paying increasing attention to the sector and its impacts, including potential future bans in Norway,” Arachchi adds.
“With respect to the individual approaches that we alongside peers take towards investment management processes, fundamentally, we are seeking to further our understanding of companies’ preparedness for prospective emerging regulatory requirements, the management of the identified risks that are being raised within the sector, and also the opportunities that they may be able to seize in relation to the issue,” Arachchi explains.
“Thanks to the support of UNICEF Sverige and the resources that they have developed, we have outlined certain parameters to support our stewardship activities that we will be undertaking,” Arachchi note pointing to a 2021 UNICEFs report on tools for investors on how to integrate children’s rights into ESG assessments.
Lending a Guiding Hand
Technology remains a priority for UNICEF, which highlighted this sector as one of “three megatrends that will profoundly impact children’s lives between now and 2050” in its The State of the World’s Children 2024 report.
“Children are a material stakeholder group for many business sectors and investors can play a huge role in shaping market practices related to children’s rights. Incorporating and influencing child-related considerations helps protect child rights right now but also helps steer business models towards the kind of sustainable development that creates wellbeing and stable societal conditions in the long-term. Integrating and investing in children’s rights is not only the right thing to do, it is also smart from a business perspective,” Tytti Kaasinen, Child Rights and Sustainable Finance Advisor at UNICEF Sweden, tells NordSIP.
“The tech companies are a prime example. One third of the internet users globally are under 18. Children are not only a crucial stakeholder from the corporate perspective, they are also at the forefront of experiencing – and even driving – the rapid development in the online world, including all the risks and benefits of emerging technologies. UNICEF strongly recommends all associated companies and investors to apply a child-lens, and offers tools to help the private sector contribute to an all-round positive development both online and offline,” Kaasinen concludes.
