How to invest in a safe digital environment for children

With increasing digitalisation, children are accessing the internet and social media at an ever younger age. This shift brings positive opportunities, such as access to education and financial services, but also significant risks, such as exposure to harmful content, cyber bullying and online exploitation.

Why online safety for children matters

Telecom companies play a vital role in enabling children’s access to the digital world, especially in emerging and frontier markets. As Sjoerd Rozing notes: “If you invest in telco infrastructure or telco services, you typically invest in younger generations.” These companies help bridge the digital divide, providing access to education, fostering inclusion and offering opportunities for personal development. The COVID-19 pandemic highlighted the essential nature of connectivity, as children worldwide relied on telecom services for remote learning.

However, as Matt Goodwin points out: “The online world is not without danger for children.” The rapid expansion of digital access means children are exposed to both positive and negative influences online. Risks such as harmful content, grooming and digital addiction require proactive measures from telecom companies and platforms.

Beyond bans: towards a safe digital environment

For investors, it is crucial to understand that supporting children’s online safety goes beyond simply advocating for bans or restrictions. As Matt Goodwin emphasizes: “Limiting access or banning certain platforms is a really blunt tool,” which is why a more nuanced approach is needed. Digital access is vital for learning, socialising and children’s right to information. Outright bans would prevent these positive aspects of digital access.  At the same time, practical challenges make bans less effective, as children are often more technologically advanced than their parents.

This means that, as investors, we should advocate for comprehensive digital safety policies that combine protective measures with empowerment. Encouraging telecom and tech companies to develop robust child protection policies, parental controls and child-centered design is more effective than one-size-fits-all solutions. Creating a safe digital environment overall is more powerful than simply imposing bans.

Listening to children: the ‘Listen Up!’ initiative

One groundbreaking approach to online safety is the ‘Listen Up!’ initiative led by Global Child Forum. This project brings together major telecom operators such as Orange, Vodafone, Tele2, and Telia to gather insights directly from children through focus groups and surveys across Africa and Europe. “Companies designing this digital world need to work with and listen to children. If they succeed in doing so, we’ve really set ourselves up for creating a safe digital space for children”, explains Matt Goodwin.

For investors, supporting initiatives that prioritise children’s voices is essential. Sjoerd Rozing underscores the importance of this approach: “This initiative really asks children what they want and what they need. That’s something we see time and time again not happening.” By integrating children’s perspectives into policy and product development, telecom companies can create safer, more inclusive online environments. Investors can play a role in driving this change through engagement and advocacy.

Investor engagement and active ownership

Triodos Investment Management actively engages with companies to strengthen their child protection policies. “We ask all companies that we invest in to have policies on blocking or limiting access to harmful content. The insights from initiatives like Listen Up! will be invaluable in future engagement strategies, enabling investors to encourage telecoms and tech platforms to adopt best practices and innovative tools”, explains Sjoerd Rozing.

Importantly, the responsibility extends beyond the telecom sector. As Matt Goodwin reminds us: “Children make up a third of the global population. They are a stakeholder group for pretty much every business out there. Businesses should be thinking about them as a stakeholder group and should be listening to them.” For investors, this means applying Child-Lens Investing principles across sectors, from technology to food and beverage, and recognising the broad impact businesses have on children’s lives.

Moreover, considering children as stakeholders is not only a matter of social responsibility but also of risk management. Companies that neglect children’s rights and safety may face reputational risks, regulatory challenges and potential legal consequences, as highlighted by recent lawsuits in the tech industry. “If you don’t do this in the right way as a company, if you don’t recognise that you are offering children access to the Internet, then you’re also not recognising the risks”, Sjoerd Rozing notes.

Amplifying children’s voices in impact investing

As impact investors, our role is to ensure that children’s wellbeing is central to investment analysis and engagement. By supporting initiatives like Listen Up!, advocating for comprehensive online safety measures, and encouraging companies to listen to and empower children, we can help build a safer, more inclusive digital world for future generations.

Matt Goodwin issues a call to action: “This tech and telecom project is exciting and provides a basis to create real change for children. So please, be vocal about it. If you work in the sector or think you can amplify this message, please do reach out because that’s the way that we make change.”