Mental Health Apps Industry ESG Thematic Report, 2023

ESG (Environmental, Social and Governance) in Mental Health Apps Industry

Merging Environmental, Social, and Governance (ESG) within the investment and decision-making processes contributes to responsible investing. The mental health app sector has not been directly disclosing ESG or sustainability data publicly, even though few policies have been mentioned in their website.

Mobile Medical Apps (MMA’s) have been growing very rapidly in the current scenario, especially mental health applications have been widely used by various clients in different sections of society including students, corporate professionals, businessmen etc. Influence of pandemic increased the usage of this segment, moreover accessibility to this platform is the main governing factor. In terms of affordability, these apps have been very promising and provide reasonable rates to different sections of society. Data Privacy is one of the major concerns related to this segment because a lot of personal details like health, financial details etc. are involved. One among these companies has specifically included their commitment to diversity, equity, and inclusion among the consumers.

ESG Trends

Mental health Apps Theme has more social impact, among the 3 ESG pillars. In terms of accessibility, most of the companies follow regulations like Web Content Accessibility Guidelines (WCAG) 2.0 which ensures accessibility to people with various disabilities, like blindness, hearing loss, cognitive limitation, speech disabilities etc. (SDG 10- Reduced Inequalities). Mental health applications have targeted different economic sections of society offering various packages based on need and level of attention required for specific issues. Moreover, specialist or psychologist consulting charges also vary with respect to the target audience.   These companies have an individual data privacy policy (SDG 16) which includes data recorded like health, location, device information, log information, transactional information, cookies, third party purchases etc. In addition to this, data handling is done very carefully. Most importantly, few top companies have access to such mental health apps to ensure a better work life balance (SDG 8) and wellness.  The application can be used at any point of time and offers a flexible usage time to consumers.

ESG Challenges

Despite having sound data privacy policies, data privacy is one of the primary challenges for most of the companies in this sector. Consumers have witnessed data breach including malicious attacks in mental health apps asking the Federal Trade Commission to warn companies based on data breach. Around 337 malicious attacks were reported to the US Department of Human services in the first half of this year. There is still a small section of society without availability of any smart phone or such application, especially old age people, ethnic, tribal, places where technology development is still in its infancy. Marketing and publicity of mental health apps have been less in comparison with other health apps, especially in social media platforms.

Growth of the Mental Health Apps Market

Mental health apps Market size has been valued at USD 4.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 16.5% from 2022 to 2030. Rising utilization of mental health apps owing to their benefits in improving treatment outcomes and lifestyle and increasing awareness regarding mental health as a significant health condition are some of the major factors boosting the market growth. Telemedicine Practice Guidelines in accordance with WHO as well Ministry of Health and Family Welfare (MoHFW) have been monitoring these Mental Health Apps segment.

Key Companies in this theme

    • Mindscape, Calm

    • Mood Mission Pty Ltd.

    • Sanvello Health

    • Headspace Inc.

    • Flow

    • Youper, Inc.

Scope of the Mental Health Apps Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Mental Health Apps Industry ESG Thematic Report 

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the mental health apps industry, globally

    • Key insights into environmental developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the market

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector