Is DEI dead? Evidence suggests it’s evolving, not ending

If you were to believe everything you read in the media, you’d think diversity, equity, and inclusion (DEI) is either dead or dying. But is this true?

There is evidence that the US companies who remain committed to DEI are having to change the language they use around the workplace, to keep themselves safe from legal challenges.

While several high-profile American companies have publicly withdrawn their efforts on DEI, what gets less publicity are the companies doubling down on DEI and reconfirming their commitment to making their organisations more inclusive, equitable and diverse. For example, 98% of Costco shareholders rejected proposals to roll back its DEI efforts.

The backlash against DEI is itself experiencing a backlash. After backtracking on DEI, retail giant Target has faced a massive, hostile customer response, resulting in losses of more than $12.4bn in revenue.

In the UK, the retaliation against DEI is far less powerful. In my experience, those companies who only prioritised DEI because of the prominence of the Black Lives Matter movement a few years ago are the ones rolling back their efforts. However, companies with more genuine intent are continuing to move forward.

Importantly, failing to take DEI seriously in the UK brings significant legal, financial, and reputational risks. It is critical that leaders understand these legal risks in making decisions on how to move forward on DEI.

The Employment Lawyers Association (ELA) recently issued clear warnings about the legal risks. For example, without a strong approach to DEI, employers are unlikely to be able show that they have taken all reasonable steps to prevent sexual harassment, should they be subject to a claim.

Caspar Glyn KC, the chair of the ELA, said in an open letter to businesses, that defending a company against discriminatory acts made by an employee was difficult now but “would be hopeless” without DEI policies in place.

In its Future of Jobs report (2025), the World Economic Forum (WEF) revealed that in the UK, almost all the measures of enthusiasm for and commitment to DEI policies are higher than the global averages. Fifty-two percent of UK employers plan to set DEI goals or targets – against 42% globally – and 58% run DEI training, against a global average of 51%.

According to HR Review, 2025 research shows that many UK firms are maintaining investment in DEI, with 26% increasing their budgets in this area. In March this year, The UK government published a consultation document on an Equality (Race and Disability) Bill, which will introduce mandatory ethnicity and disability pay gap reporting for large employers.

Major firms like the Co-op have publicly reaffirmed their commitment to DEI, with CEO Shirine Koury-Huq stating the organisation would continue to champion the work because it could see the benefits.

A survey of 1,000 businesses by Censuswide showed DEI continues to matter to the majority of UK employees too.

The Parker Review highlighted significant progress on ethnic minority representation on Boards. Its latest report (March 2025) showed that 204 of the 236 FTSE 250 companies which reported to the Review had at least one ethnically minority director compared to 175 the previous year – a rise of 17%.

Then there’s the evidence showing why DEI remains critical to business success, particularly in this most volatile of environments. Consulting firm Gartner reported that gender-diverse and inclusive teams outperformed less inclusive teams by 50 percent on average and Boston Consulting Group ascertained that companies with diversity in their DNA are “2.2 times more likely to be a world class innovator” and “2.5 times more likely to be a fast growing company”.

The Harvard Business Review discovered that employees at companies with “2-D diversity” are 45% likelier to report that their firm’s market share grew over the previous year and 70% likelier to report that the firm captured a new market. (2-D diversity is where “inherent” diversity of characteristics such as gender and ethnicity is combined with “acquired” diversity gained from difference of experience).

So is DEI dead? The evidence in the UK would suggest not. Abandoning DEI represents legal risk, as well as restricting an organisation’s competitive advantage in what are highly volatile times.

If that is not a sign that DEI is alive and kicking, I don’t know what is.