In recent years (and the last few weeks), Diversity, Equity, and Inclusion (DEI) has become a subject of intense scrutiny, particularly in the United States. However, the global outlook reveals a far more complex and nuanced picture. While DEI initiatives in the U.S. face increasing politicization, Europe and the UK continue to embed DEI within regulatory frameworks and corporate sustainability strategies. Understanding these regional differences is crucial for businesses looking to sustain and evolve their DEI efforts effectively.
The United States: DEI in the crosshairs
In the U.S., DEI has become a flashpoint for political debate. Conservative-led pushback has led to high-profile rollbacks, with companies like Home Depot and Wayfair scaling back programmes under external pressure. But this doesn’t signal a full retreat—many organizations are repositioning their DEI efforts under broader culture-building initiatives to maintain engagement while sidestepping controversy.
How DEI is Adapting in the U.S.:
- Costco: Continues DEI efforts by framing them as integral to employee satisfaction and operational excellence.
- Walmart: Keeps DEI embedded within employee development programmes despite public scrutiny.
- JP Morgan: CEO Jamie Dimon reaffirmed the bank’s commitment to diversity outreach while avoiding divisive labels like DEI and ESG.
Europe: Inclusion as a Compliance Imperative
In contrast to the U.S., European companies are weaving DEI into Environmental, Social & Governance (ESG) strategies, reinforced by legal mandates like the Corporate Sustainability Reporting Directive (CSRD) & European Sustainability Reporting Standards (ESRS). These frameworks require companies to disclose DEI metrics, making compliance an unavoidable business imperative.
Key Markets Driving DEI in Europe:
- Germany: Large corporate sector with stringent ESG reporting requirements and fines up to €10M or 5% of turnover.
- France: Strong regulatory support, including gender pay gap laws and CSRD enforcement by the Autorité des marchés financiers (AMF).
- Netherlands: Proactive ESG leadership, with many firms voluntarily adopting DEI reporting.
- Sweden & Denmark: Strong sustainability culture, investor demand for DEI transparency, and regulatory enforcement mechanisms.
The Business case for DEI remains strong
Despite media narratives suggesting a DEI retreat, the data tells a different story. Google Trends shows HR interest in DEI has grown steadily from 2018 to 2025. Companies investing in inclusion continue to see measurable benefits:
- Diverse teams are 70% more likely to capture new markets (Harvard Business Review).
- Inclusive cultures reduce turnover rates by 22% (Deloitte).
- Gender-diverse leadership correlates with stronger stock price growth & earnings per share (McKinsey & Company).
How companies are sustaining DEI in 2025
Companies have adopted two distinct approaches:
1. Stay the course with data-driven DEI
Leading companies, including Delta, JP Morgan, and Costco, are maintaining DEI initiatives by aligning them with business performance and culture.
- Use data to build a business case: Companies like Diversio analyses DEI metrics related to retention, engagement, & innovation to demonstrate ROI and address stakeholder concerns.
- Refine storytelling & communication: Position DEI as a strategic priority that aligns with core company values.
- Customize DEI strategies: Tailor programs to regional regulatory landscapes while maintaining internal engagement.
2. Reframing under ‘People & Culture’
- Other firms, such as Meta, Starbucks, and Walmart, have opted to reposition DEI within broader culture-focused narratives.
- Rebrand strategically: Shift terminology to “People & Culture” to depoliticize initiatives while preserving key principles.
- Support employees through transition: Maintain clear communication and continued support for diverse employees.
- Refine data insights: Adapt data collection methods by emphasizing employee engagement over demographic metrics.
The UK & EU: Legislative Safeguards for DEI
Unlike in the U.S., the UK’s legal infrastructure provides a stronger foundation for sustaining DEI.
- UK legal safeguards: The Equality (Race and Disability) Bill is set to mandate ethnicity and disability pay gap reporting for large companies, reinforcing accountability. Additionally, the Employment Rights Bill prioritizes workplace inclusivity and protection from harassment.
- European legal frameworks: The Corporate Sustainability Reporting Directive (CSRD) mandates DEI compliance as part of ESG reporting. This directive applies to all companies operating within the EU, including U.S. firms with a European footprint. Non-compliance carries financial and reputational risks.
Strategy revision with Diversio
Navigating the evolving DEI landscape requires a tailored and strategic approach. Whether your company is committed to maintaining DEI initiatives or repositioning under a broader People and Culture strategy, Diversio’s expert consultants can help you:
- Assess current DEI strategies and regulatory compliance
- Align DEI with business performance and stakeholder expectations
- Develop a sustainable, data-driven approach to workplace inclusion
Future-proof your DEI efforts. Book a strategy revision session with Diversio today.
