Thriving Workplaces How Employers can Improve Productivity and Change Lives 2025

5 ESG: Investors are increasingly seeing employee health and well-being as an important component of the ‘S’ Some employers may assess the impact on suppliers and partners when deciding how to invest in employee health and well-being. Prioritizing holistic health is not a task to be undertaken alone, not least because long-term health investment benefits business, the workforce and society. Healthy individuals are more likely to contribute actively to their local communities – volunteering at the food bank, running for city council, coaching their child’s sports team or shovelling a neighbour’s driveway.38 Environmental, social and governance (ESG) criteria are becoming important aspects of delivering business value. They help to enhance revenue growth, reduce risks, minimize regulatory intervention and increase loyalty and productivity among employees. Many executives and investment professionals believe ESG programmes deliver greater shareholder value and would pay a premium to acquire companies with a strong ESG track record.39 To date, environmental and corporate governance issues have dominated the ESG agenda, but the social pillar – which guides how companies manage relationships with customers, suppliers, communities and employees – is gaining consideration. Investors are increasingly paying attention to how companies manage employee health and well-being, recognizing their criticality to long-term organizational success. Also, there is growing scrutiny on labour practices, employee satisfaction, support for employees’ mental health and thinking around workforce stability. Companies listed on benchmarks such as the S&P 500 Index are now assessed not only on financial metrics but also on employee factors, such as job satisfaction, happiness, stress and purpose at work.40 Similarly, stock exchanges, including the Hong Kong Stock Exchange, are developing ESG reporting guidelines that mandate disclosures on employee health and well-being metrics, such as working hours, rest periods and equal opportunities.41 6 Regulation and compliance: Regulatory environments may become more stringent, forcing employers to act Around the world, governing bodies increasingly recognize the importance of employee health and well-being, and regulatory pressures are mounting. For example, the European Union has introduced stricter standards for workplace well-being, such as the European Framework Directive on Safety and Health at Work, the Strategic Framework on Health and Safety at Work 2021-2027, the Work-Life Balance Directive and the European Framework Agreement on Telework. EU regulations state that risk management within the workplace should encompass stress, thereby requiring psychological risk assessments and appropriate prevention methods.42 In the US, the Occupational Safety and Health Administration (OSHA) increased penalties for workplace health and safety violations to $15,624 per violation in 2023, with non- compliance leading to hefty fines, lawsuits and reputational damage. Adherence to these regulations reduces compliance risks and enhances a company’s reputation as a socially responsible entity. There is increasing expectation from consumers, employees and communities that organizations should be transparent about labour practices, diversity and inclusion, mental health support and work-life balance. Companies that fail to meet these expectations risk losing their reputation and trust among employees and customers alike. The time to act is now By prioritizing employee and health well-being, employers can unlock substantial performance gains; achieve a healthier, more adaptable and more resilient workforce; and drive positive change in their organizations and communities. Employers should not wait – decisive action taken today can secure a healthier, more productive future. Well-being is the ultimate productivity multiplier. And when companies invest in their people’s well-being, it’s a win-win — creating workplace cultures where individuals can maximize their productivity and creativity, which in turn enables businesses to grow and maximize their impact. Arianna Huffington, Author of Thrive and The Sleep Revolution Thriving Workplaces: How Employers can Improve Productivity and Change Lives 12