CCLA Investment Management has urged portfolio companies to promote and enhance disclosure surrounding workplace mental health, highlighting the related business risks and opportunities.

In a July 8 statement, the U.K.-based fund manager said that promoting good workplace mental health “is potentially material to long-term value creation and a relevant consideration when forming investment views on companies and sectors across global capital markets.”

Angling the topic towards businesses, CCLA pointed out that effectively managing mental health in the workplace also saves money, through enhanced productivity, increased innovation, reduced absence due to sickness, and lower staff turnover.

In the U.K., Deloitte found an average return of 5.3 pounds ($6.27) for every one pound ($1.18) invested in workplace mental health interventions, CCLA noted.

As such, the asset manager called on portfolio companies to acknowledge workplace mental health as an important consideration for the business and for its employees, set objectives and targets to improve workplace mental health, and to report annually on progress against the company’s mental health policy and objectives.

CCLA also urged companies to signal board and senior management commitments to promoting mental health in the workplace, recognize the link between mental health and “good work” principles, and encourage a culture of openness on mental health.

The investor group said that this should be accompanied by a published commitment to workplace mental health in a policy statement, together with a description of the scope of the commitment, and of the governance and management processes in place to ensure the policy is effectively implemented and monitored.