Companies are not properly supporting the 15 per cent of working-age adults with a mental health disorder, findings from CCLA Investment Management have revealed.
Released on mental health day (October 10), CCLA detailed the findings of its mental health benchmark, which assesses the effectiveness of companies in catering to their employee’s mental health issues.
The benchmark found that, in addition to a lack of support for mental health, companies are also failing to realise the potential 370 per cent return on invested capital they can expect from investing in mental health interventions in the workplace.
CCLA deputy head of sustainability, Amy Browne, said: “Mental health is rapidly rising up the business agenda, and as the financial case for action grows, and as new research and data comes to light, the attention being paid to this area will only grow.
“It is, therefore, disappointing that so many major employers seem oblivious to the opportunity at hand.”
In its third year, the benchmark, which is backed by a 55 global investor coalition including TAM Asset Management, Railpen, AdviserAction, and Pension Protection Fund, ranks companies on how they manage and report on workplace mental health.
The benchmark found that 35 per cent of companies are performing poorly, with only HSBC ranked in the top tier, followed by Roche Holding, Shell, Toronto-Dominion Bank, and TotalEnergies in Tier 2.
Meanwhile, six of the “magnificent seven” tech giants, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, all scored between 0 per cent and 20 per cent in the assessment.
Browne additionally stated that the benchmark aims to provide a “transparent, rigorous and independent assessment” of companies’ mental health disclosures.
She clarified that it is not designed to gauge the “happiness level” of a company, but whether the company provides the working conditions for people to thrive.
“It is astounding to see so many big names in the bottom performance tier. They may be great companies, but are they great employers?,” she said.
“We call upon all investors, advisers and wealth managers to use the findings in the report, press home the recommendations and use their influence as shareholders to drive real and lasting change.
“On this topic, there is no doubt that the interests of companies and shareholders are aligned. We all stand to gain from getting this right.”
Additionally, TAM Asset Management portfolio manager, Dan Babington, said: “Mental health is rising up the agenda across advanced economies, but there is still too little attention being paid to this crucial issue within the corporate world.
“The benchmark gives us a transparent, rigorous and data-led evidence base to enable us as members of AdviserAction to engage with companies to improve their performance and importantly act on our clients’ concerns about this increasingly urgent issue.”
tom.dunstan@ft.com
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