Diversity, equity and inclusion investment opportunities
Pushback against diversity, equity and inclusion (DEI) initiatives has been simmering since 2023, culminating recently with the actions of the Trump administration in the US. We believe that DEI does not hurt institutions nor compromise merit. In fact, it makes them stronger and enhances long-term performance. While there are constructive ways to improve the implementation of such policies, denouncing them altogether ignores their many benefits.
DEI can provide a platform for businesses to better execute their strategic goals, against a backdrop of evolving customer and employee needs, as societies become increasingly global and under-represented groups enhance their spending power. It is no coincidence that, despite dramatic pushback and against growing dissenting voices, many of the largest and best performing companies in the US remain committed to their DEI commitments.
DEI backlash in the US
The Trump presidency has turbocharged the DEI backlash, adding fuel to the fire set by the Supreme Court’s decision to overturn race-based admission policies at US colleges in 2023. In January 2025, his first set of executive orders included identifying private sector companies with ‘egregious and discriminatory’ DEI programmes.
It is no coincidence that many of the largest and best performing companies in the US remain committed to their DEI commitments.
This has galvanized many in the US business community to remove or water down such programmes, as they increasingly threaten their relationship with the new administration, and potentially pose risks to their federal contracts. Some have held firm however, understanding the bigger picture – that DEI strengthens businesses and is vital to long-term corporate survival.
Necessary for long-term relevance
The facts cannot be ignored. Globalisation is enhancing the need to tackle diversity at US corporations, as stakeholders beyond their borders continue to value or regulate for such policies or reporting. According to US Census projections, growing immigration means the country will become more racially and ethnically diverse over the coming decades. Women are projected to control two-thirds of discretionary spending by 20281, while making more than 80% of household consumption decisions2 and influencing around US$43 trillion of global spending3.
This has massive implications for companies’ employees and customers – and how to monetise them. Organisations which increasingly reflect these changing customer needs are better equipped to outperform their non-diverse peers. Therefore, despite rising backlash against DEI since the 2023 US Supreme Court decision, we have actually observed continued improvement in companies’ inclusive policies and diversity representation in recent years.
1 Center for American Progress, ‘Playbook for the Advancement of Women in the Economy’, (americanprogress.org), March 2024.
2 Forbes, ‘Who Runs The World? Women Control 85% Of Purchases, 29% Of STEM Roles’, (forbes.com), March 2024.
3 America’s Small Business Network, ‘Unlocking the power of the female consumer’, (asbn.com), February 2025.
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