The past week has seen a significant shift in corporate Diversity, Equity, and Inclusion (DEI) policies across major industries, as companies respond to changing political and legal landscapes. High-profile firms, including State Street, BlackRock, Wells Fargo, Berkshire Hathaway, and Goldman Sachs, have made adjustments that reflect a broader reevaluation of DEI strategies. At the same time, new governmental directives are reshaping how organizations approach diversity-related programs.

Financial Institutions Scale Back Diversity Mandates

Several leading financial firms this week have adjusted or eliminated DEI programs amid political scrutiny:

• State Street Global Advisors ended its previous requirements for board diversity quotas, a policy that had been in place since 2017. The firm, known for the “Fearless Girl” campaign promoting gender diversity, cited a shift in priorities and regulatory pressures as reasons for the change.
• BlackRock disbanded its DEI-focused unit and merged it into a broader “talent and culture” division, eliminating prior DEI-specific hiring targets.
• Goldman Sachs removed diversity targets from its regulatory filings, backtracking on previous commitments to increase female and minority leadership by 2025.
• Wells Fargo discontinued its policy requiring a diverse slate of candidates in the initial round of interviews for senior-level roles in the U.S.

Berkshire Hathaway and Target Exit Public DEI Commitments

• Berkshire Hathaway quietly removed all references to diversity and inclusion from its 2025 annual report, a stark contrast to previous years when it highlighted efforts to improve workforce representation.
• Target ended its company-wide DEI goals and dissolved parts of its Supplier Diversity team, reflecting a shift in strategy amid backlash from conservative groups.

Other Major Banks and Corporations Adjust Policies

• JPMorgan Chase, Morgan Stanley, Citigroup, and Bank of America have begun removing DEI-related language from their websites, public statements, and hiring materials.
• KPMG US closed its “Accelerate 2025” DEI program, signaling a pullback from structured diversity programs.
• Paramount Global halted the collection of demographic data and eliminated numerical diversity goals, aligning with shifting legal and regulatory landscapes.

Government Actions Drive DEI Reforms

The shifting DEI landscape is not occurring in isolation. Federal actions are driving many of these corporate decisions:

• Executive Orders: President Donald Trump signed an order eliminating federal requirements for affirmative action policies, barring federal contractors from implementing race-conscious hiring or supplier diversity programs.
• Agency Compliance Changes: Federal agencies have begun dismantling internal DEI offices, removing diversity-focused programs, and scrubbing related language from official websites.

RELATED ARTICLE: EU Omnibus Simplification is Out: What Businesses Need-to-Know

Public and Cultural Responses

While corporations and policymakers scale back DEI initiatives, the public response has been mixed:

• Consumer Backlash: The People’s Union USA called for a 24-hour economic blackout on February 28, urging consumers to withhold spending from major retailers in protest of corporate DEI rollbacks.
• Cultural Impact: The Art Museum of the Americas in Washington, D.C., canceled exhibitions featuring Black and LGBTQ+ artists, citing compliance with new federal orders restricting diversity-related funding.

Implications for CSOs and Finance Professionals

For Chief Sustainability Officers (CSOs) and finance industry professionals, these developments highlight critical areas to watch:

• Regulatory Adaptation: Compliance teams will need to reassess policies to align with evolving federal and corporate DEI guidelines.
• Investor Considerations: Asset managers are shifting focus from explicit DEI targets to broader ESG goals, requiring a recalibration of investment strategies.
• Reputation Management: Companies may need to balance stakeholder expectations, ensuring transparency in their approach to workforce diversity while adapting to legal changes.

Follow ESG News on LinkedIn