World Mental Health Day 2023: Chronos Sustainability supports CCLA on the world’s only global investor benchmark of company performance on workplace mental health
On World Mental Health Day, Chronos Sustainability is delighted to be supporting our client CCLA Investment Management at today's launch of the 2023 global report on workplace mental health. Our assessment of 110 of the world's largest listed employers, who together employ 16 million employees, reveals that mental health is on the business agenda but there is more work to be done to ensure strategic leadership and oversight of this important workplace issue. Congratulations to the team at CCLA for its pioneering work on this topic.
We are pleased to share CCLA’s press release below.
The full report is available by following this link
PRESS RELEASE
GLOBAL BENCHMARK ON WORKPLACE MENTAL HEALTH SUGGESTS CEO LEADERSHIP INTEGRAL TO HEALTHY WORKPLACES
- 95% of companies acknowledge mental health as an important business issue yet only 17% of CEOs have publicly signalled leadership commitment to mental health.
- Analysis shows that the average benchmark score for companies with a publicly disclosed CEO statement is 75% higher than for those without.
- Almost one in five companies has improved their management and disclosure on mental health since 2022, indicating that mental health is rising up the business agenda.
- More needs to be done to create the conditions necessary for mental health to thrive. For instance, only 22% of companies report on providing mental health training to line managers.
London, World Mental Health Day, 10 October 2023: The CCLA Corporate Mental Health Benchmark – Global 100 + (“The Benchmark”), the world’s only global investor benchmark of company performance on workplace mental health, has published its second annual report today. With an estimated 12 billion working days lost globally each year to depression and anxiety alone at an annual cost of US$1 trillion in lost productivity[i], mental ill-health has become a material financial issue for investors.
This year’s Benchmark, covering 110 of the world’s largest listed companies, found a continued lack of CEO advocacy on mental health. Just 17% (19) companies – equivalent to 2022 findings – published evidence of a CEO statement promoting workplace mental health. Yet, the analysis suggests that the average benchmark score for companies that have a published CEO statement on mental health is 75% higher than for those that have not. While this finding does not prove a causal effect, it suggests a correlation between CEO leadership on workplace mental health and overall good corporate management of the issue.
One in five companies climb the Benchmark as mental health continues to be universally accepted as an important business concern.
The low rate of CEO advocacy contrasts with the almost universal recognition by 95% of companies in the Benchmark of mental health as an important business concern (from 90% in 2022). Elsewhere, 19 companies - representing a combined workforce of six million people – have moved up at least one performance tier since last year. Of these companies, three – Roche Holding, Toronto-Dominion Bank, and TotalEnergies – have improved sufficiently to move up two tiers.
Continued investment in mental health support, yet line managers remain ill-equipped to manage workplace mental health issues.
Despite 78% of companies providing multiple mental health services and support channels and 60% investing in awareness raising initiatives, a surprisingly low number of companies (only 22%) report on the provision of mental health training to line managers.
Amy BROWNE Stewardship Lead, CCLA, said:
“The economic case for investment in mental health at work is clear. Research shows that for every US$1 invested in scaled-up treatment for depression and anxiety in the workplace, there is a US$4 return in better health and productivity.[ii] The way in which businesses respond should be a serious commercial consideration for companies and investors alike.
The results suggest that most companies now dedicate resources aimed at dealing with the symptoms of ill-health. Few, however, are taking preventative action by ensuring managers are trained in the provision of healthy work environments. In a similar vein, only 25% of companies make the link between good mental health and the good work principle of fair pay and financial wellbeing.”
“While there have been notable and encouraging improvements, there is still significant work to be done to enable workers at the world’s largest employers to thrive,” continued Amy Browne.
As an investor engagement tool it is encouraging to note that 37 global companies in the Benchmark have engaged directly with CCLA over the past year, via meetings or written communication, seeking advice or guidance on how to implement the Benchmark recommendations.
The Benchmark is supported by 48 investor signatories to the Global Investor Statement on Workplace Mental Health, representing US$8.7 trillion in assets under management.
Will POMROY, Head of Impact Engagement – Equities, Federated Hermes Limited (a signatory to the Global Investor Statement on Workplace Mental Health), said:
“Given many of us spend more time at work with our colleagues than we do at home with our friends and families, the responsibility on employers to safeguard and promote their employees’ mental wellbeing, as well as their physical and financial wellbeing is self-evident. 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. This research is helpful in shining a spotlight on the topic and encouraging better practice.”
Peter HUGH SMITH, Chief Executive, CCLA, said:
“Company leaders have a responsibility to develop a culture in which all workers can thrive. It is no surprise that in organisations where chief executives have publicly acknowledged the importance of good mental health, there has, for the most part, been greater progress.
As investors, we call upon companies to not just recognise their moral responsibilities as an employer but to accelerate their efforts to turn their policies into action and to take the necessary steps to unlock economic value by creating conditions under which their employees can thrive.”
The CCLA Corporate Mental Health Benchmark was created to bring company and investor attention to the compelling economic case for investment in mental health at work as a sustainable investment issue. It evaluates how 110 of the world’s largest listed companies are approaching and managing workplace mental health based on the strength of their management commitments and public reporting. Companies are then ranked across five tiers based on their overall scores.
The CCLA Corporate Mental Health Benchmark Global 100+ is the sister benchmark to the UK 100 Benchmark, published in June 2023. Both benchmarks are independently conducted by Chronos Sustainability, the technical sustainability partner to CCLA.
End
NOTES TO EDITORS
The full Benchmark report will be available at https://www.ccla.co.uk/documents/ccla-2023-corporate-mental-health-benchmark-global-100/download?inline on Tuesday 10 October 2023
The executive summary and company tier diagram from the report accompany this press release.
End notes can be found on the final page of this document.
ABOUT CCLA
CCLA has a long track-record of instigating positive change for a better world with its pioneering work on climate, modern slavery, and mental health. Founded in 1958, CCLA is independently owned by its clients and staff with £13.6 billion of assets under management as at 31 August 2023.
CCLA Investment Management Limited (Registered in England & Wales under number 2183088) is authorised and regulated by the Financial Conduct Authority (FCA). Registered address, One Angel Lane, London, EC4R 3AB.
PRESS CONTACTS
Amanda Williams Miranda Barham
Email: amanda@chronossustainability.com Email:miranda@mirandabarham.com
Tel: 07725 329314 Tel: 07899 030304
[i] Mental health matters (2020). The Lancet Global Health 8(11). Online at https://www.thelancet.com/journals/langlo/article/PIIS2214-109X(20)30432-0/fulltext - articleInformation and World Health Organization and International Labour Organization (2022), ‘Mental health at work: policy brief’. Online at https://www.who.int/publications/i/item/9789240057944
[ii] Mental health matters (2020). The Lancet Global Health 8(11). Online at https://www.thelancet.com/journals/langlo/article/PIIS2214-109X(20)30432-0/fulltext - articleInformation