Mobile Application Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Mobile Application Industry

The policies that impact environment, social, governance, involve companies, consumers, and governments, are uniquely shaping the current trends in sustainable investments.

Industry leaders in the mobile application industry are aware of the various consequences that impact the social aspect of the ESG in the market. The positive outcomes in terms of the social aspect is that through mobile applications, education learning can be promoted, where environment-friendly based methods can be used to educate people. However, the challenges in the market can be seen in terms of negative effects caused by excessive use of the entertainment applications segment of the market.

Advancement in the communications technology and in mobile technology has driven the rapid development of the industry, which promoted E-learning, creating an impact on the social aspect of the ESG during the times of Covid-19 Pandemic.

ESG Trends

The wide range of products/services in the mobile application industry have a social impact in terms of ESG. E-Learning applications have promoted new learning models that are efficient in terms of an environment level and social level through offering access to education at a community level. This helps companies offering e-learning models to align with the United Nations Sustainable Development Goal (UNSDG) - 4  (Access to Education).

Many countries have implemented remote learning as an emergency model of education during the pandemic leading to flexibility in learning and education. However, certain drawbacks include the lack of teacher’s expertise with handling online platforms and the lack of an internet infrastructure in undeveloped countries, restricting access to education. This lack of access to technology in developing countries slows down the progress of states/companies towards the UN SDG - 4.

Further, in terms of the social, ESG aspect the gaming segment of the market has a negative health impact on the user of the application. The mobile game segment has different kinds of contents ranging from violence to superstitions, these contents are reported to cause negative influence on the mental health of the users operating in that segment. These hinder progress of companies towards the UN SDG - 3 (Good health and well-being).

Some of the critics have argued that the gaming segment is supposed to cause the phenomenon of “psychoanesthesia” on the users, where it arouses the violent behavior and emotions, reducing the pro-social behavior amongst them, making this phenomenon a “money product” for the producers of this segment of the Market.

In response to these limitations, one of the key players of the market has developed a strategy to counter the negative effects of mobile gaming, by introducing age restrictions and parental controls on their application, limiting the access to the user. Institutions such as “Pan European Game Information” further rate the mobile gaming segment of the mobile application industry, creating awareness amongst the users, reducing the negative mental health impact on the user to an extent.

Growth of the Mobile Application Market

The mobile application market globally is valued at USD 187.58 billion as of 2021 and is expected to grow with a CAGR (compound annual growth rate) of 13.4% from 2022 to 2030. In terms of ESG, the market has bridged the gap in the education system caused due to Covid-19 pandemic, bringing a positive outcome on the social aspect. However, the entertainment segment, such as social media and gaming segment have been reported to create negative mental health impact, thereby supposedly causing adverse impact on the social aspect of the ESG.

Key Companies in this theme

    • Apple Inc.

    • Google LLC

    • Microsoft Corporation

    • Amazon Inc.

    • Gameloft SE

Scope of the Mobile Application 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 Aspects of the Mobile Application Industry ESG Thematic Report

    • Offers a global perspective of the market and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.