Finnish earnings-related pensions provider, Varma, has committed to two joint investor initiatives.

The first is a joint initiative led by the UN-backed organisation for responsible investment, PRI, which aims to prevent the possible negative impacts of social media and smart device use.

This initiative involves 33 international investors who manage around €2400bn in investments. It aims to raise awareness of the possible negative impacts of social media and technology device use on mental health and well-being.

The international institutional investors involved believe that smart device use can have harmful effects on mental health. Studies show that screen overuse, especially at too early an age, can lead to concentration and behavioural disorders, the initiative's website states. Social media and device use are considered to expose users to addiction risks.

Investors classify these as ESG risks in the hardware, media, internet, gaming, software, and telecommunications sectors. The initiative seeks to commit companies to follow good practices and identify factors that cause addiction. The initiative also wants to ensure children's safety online and develop reporting of harmful sites.
The second initiative – Investor Action on antibiotic resistance (AMR) Initiative – relates to combating antibiotic overuse and antibiotic resistance. Viruses and bacteria that have become resistant can resist the effects of drugs. This way they can continue to grow instead of being killed by antibiotics.

Varma noted that this is a significant health problem globally, as it complicates the treatment of infectious diseases, increases the length of hospital stays, raises treatment costs and mortality.

In their statement, investors point out that AMR has been declared one of the 10 biggest global threats to human health. In the joint initiative, investors seek to accelerate cooperation, make better use of existing experience and use shared resources to combat AMR.

Antimicrobial residues also spread to the environment, which is why AMR has also become an environmental risk like climate change and biodiversity loss, Varma added.

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