Limited progress on workplace mental health, benchmark shows

Companies are not paying enough attention to workplace mental health issues that could impact financial performance, according to a benchmark report released Oct. 10 by CCLA Investment Management in London.

Oct. 10 is World Mental Health Day.

CCLA's second annual Corporate Mental Health Benchmark – Global 100+ covers 110 of the world's largest listed companies, evaluating how they manage workplace mental health based on management commitments and public reporting.

The 2023 benchmark report found that 17%, or 19, companies published evidence of a CEO statement promoting workplace mental health, a marker of overall corporate management of the issue. The average benchmark score for companies with a publicly disclosed CEO statement is 75% higher than for those without.

Despite that low recognition by CEOs, 95% of the companies in the benchmark consider mental health important for business, up from 90% in the 2022 survey, and 1 in 5 companies improved their standing in the 2023 benchmark.

It is also a material issue for investors, the report said, with an annual cost of $1 trillion in lost productivity from depression and anxiety, while every $1 invested in scaled-up treatment for depression and anxiety in the workplace could offer a $4 return in better health and productivity, according to CCLA stewardship lead Amy Browne. "The way in which businesses respond should be a serious commercial consideration for companies and investors alike," she said in a statement. CCLA had £13.6 billion ($17.2 billion) under management as of Aug. 31.

In the report's foreword, David Atkin, CEO of Principles for Responsible Investing, said that addressing workers' mental health "can be viewed through the overall lens of how investors integrate ESG factors into investment and ownership decisions."

One weakness cited in the report is that despite investing in mental health support, companies don't often support line managers to deal with it or prevent it. While 78% of companies provide multiple mental health services and support, only 22% said they provide mental health training to line managers.

The benchmark is supported by 48 investor signatories to the Global Investor Statement on Workplace Mental Health who represent $8.7 trillion in assets under management. Will Pomroy, head of impact engagement – equities for signatory Federated Hermes, said in the statement that "beyond being the right thing to do in and of itself, there is also a clear self-interest. Those companies that invest in their employees and provide decent work benefit financially from higher productivity, lower turnover and higher levels of customer satisfaction."

Most American workers are concerned about their well-being at work, according to the 2023 Workplace Wellness Survey published Oct. 9 by the Employee Benefit Research Institute and Greenwald Research. Nearly three-quarters reported concern about their emotional well-being or mental health, and one-fourth rate their mental health as fair or poor.