Business resilience

Employee mental health and well-being: The business case for investment

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  • Some 12% of the global population lives with a mental health challenge; 50% will experience mental ill-health in their lifetime
  • Depression and anxiety cost the global economy over $1trn annually. Mental health risks – and costs – are expected to intensify
  • Workplaces are a major source of stress but have the potential to become key environments for protecting and promoting mental health
  • Companies prioritising well-being show stronger performance, resilience, and talent attraction
  • Investors must engage with companies to improve mental health practices and integrate it into ESG analysis, risk management, and long-term value creation
Written by
Anais El Kasm

ESG Analyst

As mental health challenges rise worldwide, the workplace has become both a major source of psychosocial risk and a powerful setting for preventive action. Research consistently highlights the strong links between work-related stress, and poor mental health outcomes – yet also underscores the positive influence of supportive, inclusive work environments. 

This dual role of the workplace is recognised across international frameworks. From the Universal Declaration of Human Rights to International Labour Organization (ILO) conventions – the ILO Occupational Safety and Health Convention (1981) and ILO Promotional Framework for Occupational Safety and Health Convention (2006) – mental health is firmly established as a fundamental right in the world of work. 

These frameworks encourage governments to adopt national laws and policies promoting mental health at work, including regulations on occupational safety and health, equality, non-discrimination, and protection from violence and harassment. In France, for example, the Labour Code requires employers to assess and prevent psychosocial risks as part of their general duty to protect employees’ physical and mental health.1

These commitments have become even more urgent in the wake of the pandemic, which triggered a sharp rise in anxiety and depression globally. While some recovery has occurred, mental ill-health remains significantly above pre-pandemic levels. Against this backdrop, mental health has emerged as a strategic issue – at the intersection of public health, workforce performance, and long-term value creation. 

This note explores why mental health in the workplace can no longer be ignored, outlines the financial and operational implications for companies, and highlights the growing role investors can play in driving positive change.

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Mental health: What are we talking about?

The World Health Organization (WHO) defines mental health as “a state of mental well-being that enables people to cope with the stresses of life, realize their abilities, learn well and work well, and contribute to their community.” This basic human right is critical to personal, community and socioeconomic development, yet it remains overlooked and underfunded.2  On average, governments allocate just 2% of their healthcare budgets to mental health, with even lower levels in developing countries.3

Mental disorders refer to a clinically significant disturbance in a person’s cognition, emotional regulation, or behaviour. The broader term ‘mental health conditions’ also includes psychosocial disabilities and other mental states linked to distress, impaired functioning, or risk of self-harm. While many factors influence mental health, individuals exposed to adversity – such as poverty, violence, disability, or inequality – are at greater risk.4

Though prevalence varies across geographies, gender and generation, the economic and social impact of mental health is profound. Mental illness disorders already cost the global economy more than chronic diseases such as cancer or diabetes, and the World Economic Forum estimates a cost of US$16.3trn between 2011 and 2030, primarily due to lost productivity.5

The rise of mental health conditions is not new, but it has accelerated – fuelled by a mix of societal, environmental, and biological factors – and health systems are struggling to keep pace with growing needs. It is estimated that one in eight people globally currently lives with a mental disorder,6  and one in two will face mental illness at some point in their lives.7  In this context, investing in mental health is a public health imperative that can also yield significant social and economic returns. It reduces suffering, improves life expectancy, strengthens healthcare systems, enhances productivity, and fosters inclusion. 8

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