Much has been made of a watering down of diversity, equity and inclusion (DEI) corporate policies since President Trump regained power.
But according to this great summary of what other business leaders have been saying on the topic, and about whether events in the U.S. will alter their climate commitments, the mood seems to be that the value of companies of sticking to their guns will outweigh that of shorter-term political alignment.
The considerations will be different for every firm. Reading that piece does give a sense that many businesses do intend to stay the course though.
The chair of Boston Consulting Group told an audience at last week’s Davos summit that its stance on DEI was that, “we need to create an environment where people feel included and it needs to be a meritocracy where everybody has the opportunity to succeed".
Meanwhile, an Australian mining billionaire at the same event discussing companies that jumped on the ant-ESG bandwagon said, “let’s just go full speed ahead, bugger the icebergs”. In other words, climate change would create new dangers for his businesses and society regardless of any one political leader’s agenda.
A piece published this week by The Times’ U.S. business editor struck a similar chord. “Many company leaders are quietly resisting the DEI backlash, committed to the view that having a diverse workforce and inclusive policies is consistent with casting a wide net for the best talent to support their businesses,” it said, maintaining that DEI was not over but would have to be “reinvented”.
For some companies wanting to attract and retain the best talent, that will likely mean connecting it more closely with other initiatives, and embedding it more deeply within the organisation.
And on the climate change side, while industry and some members states have begun to lean on the European Union to soften its broad drive for emissions reduction in light of the Trump agenda, the read-out from this Time summary is that “companies will continue to pursue profitable climate initiatives” despite what is happening politically in the U.S. and the broadsides being sent across the Atlantic.
It noted: “A WEF report released last December found that unprepared companies could face an up to 25% hit to their earnings by 2050 without adequate measures to adapt to the effects of climate change." That’s a long way away for CEOs focused on quarterly earnings, but companies are already seeing the early warning signs as fires, droughts, and flooding twist up supply chains.
And that was “all the more reason to share the stories of companies that have made climate programs profitable".
It’s understandable that with the degree of political change that has happened, many companies will be wanting to avoid being dragged into the limelight to share their perspectives. As time goes by, it will be interesting to see which ones do benefit from demonstrating the positive difference they’re making with climate action, or the way that they’re advancing diversity despite the politicisation of policy.
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