Is this the end of Corporate DEI?

Diversity, Equity and Inclusion (DEI), also known as D&I, I&D, DEIB, IDEA or even JEDI – the acronyms are endless.

Even if you haven’t heard of them, you are likely to have a strong opinion on the topic itself. Having spent three years supporting both asset managers and corporates with their responsible investment and/or corporate sustainability approaches, I believe it is the most contentious topic within the ESG space. Although there has always been some form of resistance, or certainly apprehension, towards implementing DEI initiatives, the most recent wave of DEI pushback is visible and has become increasingly mainstream. I want to offer an overview of this pushback, why I actually understand where the pushback has come from, but also my belief as to why DEI remains relevant for businesses.

Funnily, a key reason behind the most recent wave of DEI pushback is something I agree with; when first starting as an ESG consultant, there were numerous studies which claimed to identify a correlation between increased diversity and company performance. The most famous of which are a series of studies, from the management consultancy McKinsey, which claimed to show that “the most diverse companies are now more likely than ever to outperform less diverse peers on profitability.” By propagating this message, these studies provided ample ammunition to DEI proponents and were treated like gospel.