The Silent S in ESG: Why Did It Take a Pandemic to Wake Up Corporates to Mental Health?

Poor mental health is believed to have serious economic implications - with an estimated cost of US$2,000 per employee per year due to absenteeism, improper use of leave, presenteeism, and staff turnover. The direct and indirect costs of mental ill-health are estimated to eat into four per cent of global GDP a year — more than the cost of cancer, diabetes, and chronic respiratory disease combined. By 2030, mental illness is expected to cost the global economy US$6 trillion a year. An analyst from S&P Global Market Intelligence told an audience of investors and business owners that workplace wellbeing — defined as the overall mental, physical, emotional, and economic health of employees — would dominate the social aspect of ESG [environmental, social, and governance] issues and risks for companies.