Despite 2024 feeling rather bad for DEI (a trend that began in 2020) and 2025 appearing to be not much different, it would be premature to conclude that DEI is turning out to be an abandoned practice.
The good news: A surprising number of companies are happily continuing on DEI.
A quick peek at the latest study on DEI -the Teneo 2024 ESG Series (the second of two reports on Sustainability-at www.teneo.com)-conducted amid the 2024 DEI headwinds, shows a scenario for DEI unlike what is being widely reported.
Teneo analyzed 250 sustainability reports published by S&P 500 companies between January 1 and June 30, 2024, for this study.
When the Teneo study asked S&Ps if they are still using the DEI Acronym in 2024, an overwhelming 94% said “Yes”!
“Notably, of that 94%, the percentage of companies that now prioritize ‘inclusion’ by placing it first in the acronym has risen,” reveals Teneo. Businesses also continue to highlight “Diversity” in their workforce. Such disclosure remains high, with 97% of companies including the term “Diversity” in some format.”
When asked if the Companies ditched their DEI Goals, Teneo found 43% of the S&P 500 continuing to “maintain and promote quantitative, time-bound DEI goals” in sustainability reports, with almost a huge 80% of these goals remaining unchanged from last year.
Of the 250 companies analysed, 13 companies even introduced new DEI goals, including eight on representation, two on supplier diversity and six on broader initiatives such as recruiting efforts and pay equity. When it comes to targeted talent programs in which certain programs, such as mentorships, fellowships, internships and scholarships-target specific employee segments, 67% of company reports highlighted such programs prominently.
When it comes to supplier diversity programs, it was found that such diversity initiatives “remain a critical element of corporate DEI strategies, with 78% of companies continuing to disclose these efforts!”
Looking ahead at the study findings, Teneo prescribes: “DEI communications are being scrutinized by a broad range of stakeholders. To better navigate different and often conflicting perspectives, ESG reports should clearly demonstrate how DEI efforts align with business priorities and highlight measurable outcomes…”
Another study, the widely read DEI study (Beyond Backlash: The Continued Benefits of DEI at Work-Published 29 October 2024 -in www.conference-board.org -conducted in US in September 2024) by The Conference Board carried out among 1345 US workers found that no less than 58% of them believing their “organization devotes appropriate level of effort and resources to their DEI initiatives.” 81% said their company has fairness policies and executive leaders who actively promote DEI! 71% say that DEI initiatives improve their sense of belonging, 62% said they enhance engagement and 59% said they help collaboration and retention.
The study data shows no major withdrawal from DEI by companies despite news headlines that blew up the situation.
Then what’s really behind the pullback trend? Their Brand reputation and the need to attract new talent are likely to be the key drivers that many companies want to continue the DEI practice.
