The CEOs of 100 of the largest listed companies in the UK have been urged in a letter by a coalition of 29 asset owners, institutional investors, and stewardship service providers representing around $£5.8 trillion in assets to take quick action to create and implement efficient management systems and procedures on workplace mental health.
CCLA organised the coalition, which is made up of the original signatories to the Global Investor Statement on Workplace Mental Health, which was released in May of this year. It features some of the most significant figures from the responsible investment movement, such as Federated Hermes Limited, Brunel Pensions Partnership, and Nomura Asset Management.
The letters are addressed to the businesses listed in the CCLA Corporate Mental Health Benchmark – UK 100, which was introduced in May of this year to give investors a trustworthy instrument for assessing and contrasting corporate practises on mental health. The signatories urge CEOs of businesses to make sure they maximise the performance of their organisations by reducing avoidable expenditures related to mental illness and making a strong effort to provide working environments where each person may succeed.
The coalition implores businesses to recognise workplace mental health as a crucial problem for both the organisation and its workers and establish goals and targets to enhance workplace mental health and provide an annual progress report on these goals and targets.
In 2019, CCLA began investigating the issue of mental illness and emotional health among its investee companies. The extent of poor mental health among UK workers is highlighted by Deloitte’s most recent study on employers and mental health.
According to the estimate, the total yearly cost of poor mental health to the private sector in the UK was between £43 and £46 billion in 2020–21, up by 25 per cent from pre–pandemic estimates in 2019.
The survey also discovered that workplace mental health interventions had substantially higher returns on investment, with estimates of £5.30 for every pound invested in 2020–21.
CCLA stewardship lead and architect of the global investor statement on corporate mental health Amy Browne says: “Creating a workplace that does no harm to the mental or physical health of workers is not only a moral necessity but also a financial imperative. According to Deloitte, in 2021 employers saw an average return of £5.30 for every £1 invested in mental health interventions. In creating a positive environment for workplace mental health, companies will boost their ability to retain skilled employees, increase their productivity and reduce their financial outgoings.
“Investors have a role to play as catalysts for positive change. 29 founding signatories have stepped forward to start that change in motion. We are certain that collectively we have the opportunity to improve the lives of millions of employees worldwide.
“Our research shows that while mental health initiatives are plentiful, there is a clear lack of commitment by many senior leaders and that strategic planning on mental health is rare. We are certain that giving workplace mental health the attention it deserves offers benefits for individuals and firms, and, by extension for the wider economy and society.”
The post Investor coalition calls for action and disclosure on mental health appeared first on Corporate Adviser.
