Connecting the Dots: Mental Health, Financial Wellness, and Climate Anxiety in the Workplace

What Is Climate Anxiety, and Why Should Employers Care?

Climate anxiety is not simply an abstract worry. It has tangible effects on mental health, especially among Gen Z and Millennials—the majority of today’s workforce. Symptoms can include:

• Chronic stress
• Feelings of helplessness
• Difficulty concentrating
• Sleep disruption
• Depression or eco-grief

Organizations increasingly recognize mental health as a business imperative. The cost of untreated mental health conditions is estimated at $47.6 billion annually in productivity losses in the U.S. alone, according to a recent Gallup survey.

As climate-related events become more frequent and severe—think wildfires, floods, and extreme heat—climate anxiety is likely to increase. Employers can’t prevent these events, but they can provide support systems that help employees manage emotional distress and feel empowered to make a difference.

The Overlooked Mental Health Benefit: Decarbonizing Personal Choices

Most mental health strategies in the workplace focus on treatment or stress management. But what if one of the most overlooked levers for improving mental health is also one of the most urgent imperatives of our time—decarbonization?

Giving employees tools to reduce their personal carbon footprint isn't just good for the planet; it provides them with a sense of purpose and control—two essential ingredients for psychological well-being.

This aligns with the theory of “self-efficacy” from psychologist Albert Bandura: people are more likely to feel capable, resilient, and mentally healthy when they believe their actions make a difference. Supporting employees in adopting low-carbon solutions—like switching to an EV or improving home energy efficiency—can spark this sense of efficacy.

Connecting Financial Wellness and Climate Action

Decarbonizing personal choices often comes with a financial barrier. While EVs, solar panels, and home upgrades save money in the long term, the upfront costs can be significant.

That’s where integrated climate and financial wellness benefits come into play.

Financial wellness programs that include incentives or support for climate-positive purchases not only help employees save money, but they also make sustainable choices more accessible and less stressful. This is especially valuable during a time when both inflation and climate anxiety are impacting employees’ mental health.

Example initiatives include:

• Carbon Savings Accounts to help offset costs for EV charging, heat pumps, solar panels, and other sustainable home upgrades
• Employer-matched incentives for energy-efficient home improvements, green commuting, or low-carbon lifestyle changes
• Integrated financial tools like green loans or sustainable 401(k) options to support long-term, climate-aligned wealth building

According to a report by PwC, 57% of employees say financial stress impacts their mental health. Supporting smart, climate-aligned spending decisions helps tackle two stressors at once.

Practical Benefits with Emotional Payoffs

When employees take climate-positive actions, the outcomes aren’t just lower utility bills or carbon emissions. They’re psychological. Here’s how:

1. Restored Sense of Control

Climate change feels overwhelming, but helping employees take meaningful personal steps restores a sense of agency. Making informed choices—like electrifying your vehicle or insulating your home—transforms passive anxiety into active engagement.

2. Values Alignment

Employees want their values to be reflected in their workplace. According to IBM, 67% of surveyed employees say they are more willing to apply for jobs with environmentally sustainable companies. By offering climate benefits, you’re signaling that your organization walks the talk—and empowering employees to do the same.

3. Community + Shared Purpose

When companies create climate-focused employee programs—like internal challenges to reduce emissions or opt into sustainable benefits—it builds community. Employees can see that they’re not alone in their concern or actions, reducing the isolation that often comes with climate anxiety.

4. Financial Relief

Energy efficiency and sustainable transportation save employees real money. These savings reduce financial stress—one of the top contributors to poor mental health.

Messaging Tips for Mental Health Awareness Month

Whether you’re in HR, ESG, or internal communications, May is the perfect time to promote the intersection of mental health, financial wellness, and climate action. Here are some messaging angles and tactics to consider:

✅ Lead with Empathy

Acknowledge that many employees are struggling with climate anxiety. Use language that affirms their emotions without catastrophizing. For example:

“We know that many of us are feeling overwhelmed by the state of the world. This Mental Health Awareness Month, we’re offering new ways to take action—starting at home.”

✅ Highlight Empowerment, Not Guilt

Avoid framing climate action as a moral obligation. Instead, emphasize the psychological and financial benefits of making sustainable choices:

“You can make a difference—while saving money and reducing stress. Our climate benefit programs are designed to support your mental well-being and financial goals.”

✅ Show Tangible Impact

Quantify the carbon and financial savings where possible. Help employees visualize the positive outcomes of their choices.

“Switching to a heat pump can reduce your household emissions by up to 50%—and lower your energy bills by hundreds of dollars a year.”

✅ Provide a Clear Call to Action

Make it easy to take the next step. Link directly to benefit portals, internal campaigns, or support resources.

Additional Resources to Support Your Message

Here are some credible sources you can link to in your internal or external communications:

• American Psychological Association: Mental Health and Climate Change
• The Lancet: Climate Anxiety in Young People
• Project Drawdown: Climate Solutions by Sector
• U.S. Department of Energy: Home Energy Rebates
• Internal Revenue Service: Clean Vehicle Tax Credit
• Harvard Business Review: The Hidden Costs of Climate Change on the Workforce

Final Thoughts: Mental Health, Climate, and Agency Are Intertwined

This Mental Health Awareness Month, we urge employers to broaden the definition of well-being. It's not just about treating symptoms—it’s about giving employees the tools and support to build lives that are aligned with their values, resilient to stress, and connected to a hopeful future.

Climate benefits aren't just about sustainability. They are about mental health. They’re about agency. They’re about giving people a reason to believe that the future can still be shaped for the better—and that they have a role in shaping it.

Talk about financial wellness.
Talk about climate action.
And most importantly, talk about how they support your people’s mental health.

Empower your employees to take climate action, reduce financial stress, and support their mental well-being—explore integrated benefits today.

Schedule a Demo