Disordered thinking

Approaches to mental health in the workplace have improved—yet almost half of companies have much more to do, according to investment manager CCLA.

The CCLA Corporate Mental Health Benchmark, now in its fourth year, reveals 21 companies improved their scores for taking action on workplace mental health.

The bad news is that, of the 100 listed companies examined, 44 score in CCLA’s bottom two grades. And this even though CCLA says all the companies in the survey recognise employee mental health as a “significant business concern”.

Amy Browne, stewardship director at CCLA, acknowledged the improvements. “But there remains much more to be done. Many companies are still not dedicating sufficient time and resources to employee mental health and a small number are failing to engage with us, as shareholders, on this important issue.”

Seems a problem shared is not always a problem halved.

Rights vs regulation

So, as we all know, the European Commission is busy watering down sustainability reporting obligations contained in two mighty directives that have been the focus of much criticism that they overburden EU companies with regulation.

Amending them, even though they’re both brand spanking new, should sort things out, right?

Well, not everyone thinks so. In fact, even one of the EU’s own watchdogs has an opinion. This week, the European Union Agency for Fundamental Rights (FRA) issued its 2025 report and had this to say: “Legislative developments in areas such as corporate sustainability due diligence are, at the time of writing, affected by the European Commission’s deregulation and simplification proposals introduced in early 2025.

“Although these changes aim to simplify the regulatory framework for businesses, they may also weaken human rights and environmental protections.

“This reflects a broader trend whereby the simplification of regulatory frameworks, intended to enhance competitiveness, can come at the expense of fundamental rights safeguards.”

In their foreword to the report, FRA board chair Jim Clarken and director Sirpa Rautio sound the alarm: “This Fundamental Rights Report 2025 is a call to action urging Member States and EU institutions to stand up for fundamental rights and to address the gaps and challenges we have identified.”

And with that, Ursula von der Leyen puts Clarken and Rautio on speed dial.

Texas hold ‘em to account

The governance wrangling goes on in the US unabated. The current area of concern is moves by Texas (currently the in-vogue state since Tesla left Delaware for the Lone Star state) to change the rules for proxy advisers.

Texas lawmakers want proxy advisers to disclose when they “deviate” from acting in the “financial interest” of shareholders, reports Minerva Analytics.

Minerva, a corporate governance advisory firm, notes there are fears this makes it harder for investors to consider ESG, DEI and other risk factors in their investment decision-making.

Minerva’s CEO, Sarah Wilson, has warned Texas lawmakers that the new rules risk “detrimentally impacting investor confidence” and has offered to talk it all through with Ann Wagner, chair of the state’s senate’s committee on capital markets.

Regardless, the final sign-off on the new rules is with Greg Abbott, the Texas governor who, in 2023, accused Joe Biden of “ESG fanaticism” over new climate risk reporting rules, which died with the former president’s departure from the White House. So, not sure Abbott will be listening.