ASX20 shows progress on mental health, but more to be done

A report by the Australian Council of Superannuation Investors (ACSI) found accountability for workplace mental health is underdeveloped among ASX20 companies and companies aren't consistently walking their own talk on the issue.

ACSI assessed the ASX20 companies' publicly reported practice against the CCLA Mental Health Benchmark which covers four key pillars: management commitment and policy, governance and management, leadership and innovation, and performance reporting and impact.

The report, Establishing the Baseline: ASX20 Performance Against the CCLA Mental Health Benchmark, follows estimates from the Productivity Commission that mental illness and suicide is costing the economy as much as $70 billion per year. Absenteeism because of mental ill health costs companies about $17 billion annually, it said.

The assessment found that while 60% of ASX20 companies report board or senior management-level responsibility, only 25% actually disclose clear day-to-day operational accountability. Just 15% offer specific training to line managers.

It also found that only 25% of companies disclose a formal commitment to fostering a culture of openness and destigmatising mental health, despite the chief executives of close to half of the companies having publicly signalled a commitment to workplace mental wellbeing.

Further, while the vast majority have mental health support offerings in place, their reporting focuses largely on the availability of those offerings and doesn't provide transparency around the outcomes or effectiveness of having them in place.

However, on a more positive note, the report says psychological wellbeing is on the agenda, with 95% of ASX20 companies saying it's an important business issue. About 45% of them say this is because it influences employee retention and improved customer outcomes and is also the result of increased regulatory scrutiny. Still, while 75% have published a corporate mental health policy, only 30% are comprehensive.

Of the 20 companies reviewed, just one was assessed against the benchmark as being a leader in workplace mental health management and disclosure. The majority were either deemed to be on the journey and beginning to formalise an approach, or on the way to developing robust systems for management and disclosure.

For the management commitment and policy pillar, Rio Tinto, Woolworths, Coles, National Australia Bank, and Westpac were deemed the best performers.

For governance and management, ANZ, Westpac, Rio Tinto, Fortescue, and BHP Group ranked highest.

On leadership and innovation, BHP Group, Coles, Rio Tinto, Commonwealth Bank, Fortescue, QBE Insurance, Woodside Energy, and Woolworths were standouts.

And for performance reporting and impact, Transurban, Coles, Rio Tinto, Woolworths and Macquarie scored highest.

While it's not for workplaces to do all the work in combatting Australia's mental health crisis, ACSI noted that the Productivity Commission previously found that every $1 invested in workplace wellbeing and intervention programs returns as much as $4.

"We understand that this assessment only looks at what is in the public domain, with companies likely to be doing more on this issue without necessarily reporting externally," ACSI said.

"With mental health disclosures still in their infancy in Australia, no one expects immediate perfection, however, we hope these findings will be a catalyst for both company and investor action on workplace mental health.

"The better companies can manage these issues and build investor understanding, the better positioned we all are to understand current practice and engage on areas of potential improvement."