Business for Health calls for aligning wellbeing to ESG as long-term sick rocket

Business for Health, a business-led coalition working with major employers including Legal and General and Axa Health, is calling for health and wellbeing to be more closely aligned to companies’ environmental, social and governance (ESG) strategies amid an “alarming” increase in the number of people out of work due to long term sickness.

The call comes in a new report in which the coalition highlights the need for an increased focus on workplace health and long-term prevention strategies if the UK is to alleviate pressure on the NHS and boost the economy.

In the UK, health-related economic inactivity is costing the economy £180bn a year, with around 650,000 fewer people in the workforce now compared to pre-pandemic levels.

The largest rise in long-term sickness has been experienced by those between the ages of 16-24, a rise of 50% since 2006.

Latest data from the Office for National Statistics (ONS) showed more than 7,000 people were added in one month to the total of those economically inactive due to long term sickness.

Remarkably, the number of people economically inactive due to long term sickness in the UK has more than doubled in the past year and is more than 25 times higher than before the pandemic.

The report’s authors highlight that incentivising businesses and employers to address health and wellbeing concerns among their employees is essential in the short term.

However, they add a long-term strategy focused on bringing “health” into businesses’ ESG strategy will be “vital” if the UK is to address systemic issues relating to long-term economic inactivity and ill health.

Business for Health has launched a Work Health Index (WHI) with support from the government and NHS England to benchmark businesses policies and provisions relating to workplace care.

The organisation will build upon the WHI during the year, testing out metrics gathered from the scheme in real-world projects.

This will see Business for Health enter a strategic partnership with The Health Equity Network launched by Sir Michael Marmot.

He has worked with areas including Greater Manchester, Waltham Forest, Luton, Coventry, Cheshire and Merseyside, and Gwent to uncover issues relating to health inequalities and is now working with the areas on implementation.  

The report shares key findings and recommendations on the future of workforce design in frontline, lower-wage workers in the retail and hospitality sectors, which have been particularly hard hit by the current economic climate, and must factor in the government’s economic growth plans ahead. 

The report also outlines key projects supported by Business for Health including:

Tina Woods, chief executive of Business for Health and co-author of the report, said: “Healthcare demands are increasing, costs are climbing, and outcomes are deteriorating with health inequalities on the rise and the healthy life expectancy gap between the richest and poorest citizens widening.

“We need radical change. Proactive actions need to be taken by businesses to improve population health and boost our economic potential.

Today’s report outlines our strategy to support the long-term health of the nation through preventative measures.

“Following on from the development of the Work Health Index, Business for Health and its partners are looking forward to initiating real world projects across our key three pillars: workforce health, consumer health and community health to shape a healthier and more prosperous Britain.”

John Godfrey, chairman of Business for Health and co-author of the report, added: “As we manage the effects of the pandemic and the cost-of-living crisis, evidence is accumulating on the link between health and wealth.

“Economic growth cannot ignore the health of the population. Companies increasingly see the business case for investing in their employees’ health and productivity, and the best companies actively manage the risks to public health from their activities.

“Companies need to take these actions in a planned way to forestall an approach that uses regulation, taxation or litigation to drive health improvement. Including health in the ESGH agenda will ensure there is a profound, lasting, and positive impact for society and for business.”

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