A Deep Dive into the Governance Practices of Mental Health Apps: ESG Insights

Posted by Manisha S on August 7th, 2023

In recent years, the mental health industry has witnessed a significant transformation with the rise of digital platforms and mobile applications designed to support mental well-being. As this sector continues to expand, it is crucial to focus on the Environmental, Social, and Governance (ESG) aspects within the mental health apps industry. ESG considerations are becoming increasingly important in determining the overall sustainability and ethical impact of these applications. In this post, we will explore the significance of ESG principles in the mental health apps industry and examine how companies are incorporating ESG practices to promote positive social change.

Environmental Considerations:

• Carbon Footprint: Mental health apps that rely on cloud-based infrastructure and data storage can contribute to carbon emissions. Companies can prioritize selecting eco-friendly hosting providers and implementing energy-efficient technologies to minimize their carbon footprint.

• Sustainability Initiatives: Organizations can demonstrate their commitment to environmental sustainability by implementing practices such as recycling, reducing paper usage, and adopting renewable energy sources for their operations.

Social Impact:

• Accessibility and Inclusivity: Mental health apps should strive to be accessible to individuals from diverse backgrounds, ensuring that language, cultural, and disability barriers are addressed. Companies can invest in user research and inclusive design to create apps that cater to the needs of all users.

• Privacy and Data Security: Safeguarding user data is of utmost importance. Companies should adhere to stringent data protection regulations, prioritize user consent, and implement secure encryption practices to maintain user trust and privacy.

• Ethical Content and Messaging: Mental health apps must provide accurate and evidence-based information, avoiding stigmatizing language or perpetuating harmful stereotypes. Transparent communication about the limitations and potential risks of the app's features can help users make informed decisions.

Governance Practices:

• Ethical Leadership: Companies in the mental health apps industry should adopt strong governance practices that promote ethical decision-making. This includes establishing a code of conduct, fostering an inclusive and diverse work environment, and implementing robust whistleblower policies.

• Stakeholder Engagement: Engaging with stakeholders, including users, employees, and the wider mental health community, is crucial for understanding their needs and concerns. Regular feedback and collaboration can help companies improve their apps and ensure they meet the highest standards.

Is your business one of participants of the global Mental Health Apps Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

As the importance of sustainability, social impact, and ethical governance continues to grow, here are some key ESG trends observed in the mental health apps industry:

1. Ethical Data Handling: With the increasing reliance on user data for personalized mental health support, companies are placing a greater emphasis on ethical data handling practices. This includes obtaining informed consent, anonymizing data, and implementing stringent security measures to protect user privacy.

2. Diversity and Inclusion: Mental health apps are recognizing the importance of diversity and inclusivity in their offerings. Companies are striving to create apps that cater to a wide range of individuals, considering factors such as language, culture, gender identity, and accessibility needs. Inclusive design and user research are being utilized to ensure that these apps are accessible and relevant to diverse populations.

3. Sustainable Technology Infrastructure: Mental health apps rely on technology infrastructure such as servers, data centers, and cloud services. With a growing awareness of environmental impact, companies are seeking sustainable alternatives for hosting and data storage. They are exploring energy-efficient technologies, renewable energy sources, and carbon offsetting to reduce their carbon footprint.

4. Employee Well-being and Support: ESG considerations extend beyond the app users to the companies' own employees. Mental health app providers are prioritizing employee well-being by offering mental health support services, flexible work arrangements, and fostering a positive work culture. These practices promote a healthier and more engaged workforce.

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.


The mental health apps industry has immense potential to positively impact individuals' well-being. However, it is essential to consider the ESG aspects within this industry to ensure that these apps not only deliver effective support but also contribute to a sustainable and ethical future. By prioritizing environmental considerations, focusing on social impact, and implementing strong governance practices, companies can lead the way in creating meaningful and responsible mental health solutions that benefit both individuals and society as a whole.

About Astra – ESG Solutions By Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

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Manisha S

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Manisha S
Joined: August 2nd, 2017
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