Sustainable Switch: Are the DEI headlines bleaker than reality?

Randstad NV

13/02/2025 13:12

Feb 13 - By Sharon Kimathi
Energy and ESG Editor, Reuters Digital
    
        
  
    Hello!   
  

This week, the CEO of Dutch staffing giant Randstad said "the
headlines are bleaker than the reality" as some United States
companies change their diversity, equity and inclusion (DEI)
policies targeted by President Donald Trump.
    
But is that true?
    
Firstly, let’s have a quick refresher on DEI. Before the term
was weaponized by right-wing groups in the U.S. and became part
of the daily lexicon, it referred to governance programs aimed
at increasing representation of underrepresented groups
including racial minorities, women, LGBTQ+ individuals, and
people with disabilities, particularly in leadership roles in
the workplace.
    
DEI emerged following the contributions of various social
justice movements around the world including the Civil Rights
Movement, the women's suffrage movement, and the LGBTQ+ rights
movement.
    
Since taking office on January 20, Trump has issued a series of
executive orders aimed at scrapping DEI initiatives across the
federal government and the private sector. 
    
These orders have been criticized by advocacy groups who say
they might deepen inequities and undo decades of progress made
to enshrine civil rights protections for marginalized groups.
    
    
    So, are the headlines bleaker than reality?
  
        
    
     
  
Randstad CEO Sander van't Noordende said companies were seeking
to ensure their work environment was inclusive even as they move
away from some initiatives deemed "problematic" in the light of
the executive orders.
    
Here’s a look at some of the largest businesses in the U.S.
which have recently changed their DEI programs or removed
references to them in their annual reports:
    *         Amazon.com removed a reference to "inclusion and
diversity" in its annual report filed last week, after it told
employees that it was winding down its programs.
    *         Alphabet's Google is scrapping its goal to hire
more
employees from underrepresented groups and is reviewing some of
its DEI initiatives.
    *         Disney's 2024 annual report removed mentions of
its
"Reimagine Tomorrow" program, an online space for "amplifying
underrepresented voices" that featured some of Disney's DEI
commitments and actions.
    *         Facebook parent Meta Platforms said it was ending
its
DEI programs, including those for hiring, training and picking
suppliers. 
    * Top proxy adviser Institutional Shareholder Services said
it
will no longer consider the gender, racial or ethnic diversity
of U.S. company boards when making its voting recommendations.
    * Large investors such as BlackRock and Vanguard have
already
reduced the importance of diversity considerations in their
stewardship policies.
    *         Goldman Sachs cancelled a four-year-old policy to
only
take public companies that had two diverse board members, a
spokesperson for the bank said.

Several large firms had made marginal progress increasing the
representation of women in management even while policies to do
so were in place, a Reuters review of disclosures found.
 
    
    Fighting back
  
     
    
        
  
My colleague Ross Kerber, U.S. sustainable business
correspondent, spoke to New York City Comptroller Brad Lander
about the wave of companies removing DEI initiatives.
Lander said, “it’s another egregious bending of the knee by
people who should know better. I can only conclude they're
afraid of increased regulation. Rather than standing up for
independent proxy advice, they are pre-emptively throwing the
value of diverse governance under the bus.”Click here for the
full column.
    
It’s worth noting that there are companies who have reaffirmed
their commitment to DEI such as Apple, Costco and Delta too
according to an article by FOX 5 Atlanta.
Then there’s the U.S. Federal Communications Commission chair’s
recent announcement. FCC’s Brendan Carr told NBC News-parent
Comcast it is opening a probe into the company's promotion of
DEI programs, according to a letter seen by Reuters.
     
And Starbucks was sued by the U.S. Republican Attorney General
Andrew Bailey, who accused the coffee chain of using a
commitment to DEI as a “pretext to systematically discriminate
based on race, gender and sexual orientation”.
    
    Here are a few more stories on my radar on Trump’s war
against ESG:
  
    *         Where do the legal cases against Trump's executive
orders stand?
      
    *         Trump presses Jordan to take in Palestinians from
Gaza;
king opposes displacement
      
    *         US judge clears the way for tens of thousands of
federal
workers to take Trump buyout
      
    *         American Bar Association says rule of law is under
'attack'
      

    
    Talking Points
    
     
  

    *         Press protection: A record number of journalists
were
killed around the world last year, the Committee to Protect
Journalists said, adding that Israel was responsible for nearly
70% of the deaths. At least 124 journalists in 18 countries died
in 2024, the CPJ said in a statement.


    *         Thames Water probe: British water regulator Ofwat
is
launching an investigation into Thames Water’s failure to
complete 812 environmental improvement projects it promised to
deliver between 2020 and 2025. The utility recently admitted it
is unlikely to finish more than 100 of these projects on
schedule. Thames Water has faced criticism for polluting rivers
and seas with sewage, with allegations that it has prioritized
profits over environmental protection.

    
    ESG Spotlight
  
     
    
        
  
In keeping with the topic of diversity, today’s spotlight
highlights some of the progress made in Hollywood.
Out of the top 100 movies in 2024, more than half featured a
story centered on a female actor as a lead or co-lead, the first
time representation has been above the U.S. Census where girls
and women comprise 50.5% of the population, a 2025 report from
the University of Southern California found.
However, representation fell for people of color in film, the
report said. Click here for the full Reuters story.
    
    Today’s Sustainable Switch was edited by Elaine Hardcastle
  
     
    Think your friend or colleague should know about us? Forward
this newsletter to them. They can also subscribe 
    here