Read more on the subject of DEI
****
Given the polarization of the debate on equity, diversity and inclusion (DEI) in the United States, many Quebec and Canadian companies are concerned about a potential backlash on our side of the border. Yet recent data shows that, while some organizations are adjusting their strategies, the general trend remains one of consolidation and even growth in DEI initiatives. Let’s analyze the data together!
Companies maintain their commitment
In British Columbia, leading companies including Telus Corp and Teck Resources Ltd. reaffirm their commitment to DEI. “Our commitment to DEI has been a cornerstone of our culture for over 25 years, which is why we have no plans to change our DEI policies,” says Telus Corp in January 2025. This commitment to the principles of inclusion is not an isolated case: a January 2025 survey in the USA reveals that seven out of eight companies plan to maintain or increase their DEI budget in 2025.
By the way, did you know that when Walmart said it would not renew certain DEI commitments and initiatives, creating shockwaves, dozens of shareholders representing $266 billion in assets sent a letter to Walmart, asking it to explain and justify its retreat from DEI initiatives?
Real support for workers
78% of American employees would not consider working for a company that did not commit significant resources to prioritizing DEI initiatives. Also in the USA, a survey carried out in the summer of 2024 highlights that 58% of workers consider that their company is investing the right level of effort in DEI, while 21% feel that these initiatives should be strengthened. What’s more, a significant majority of employees, particularly women and racialized people, say they would not work for a company that did not value DEI.
According to the same study, opinion on these initiatives also varies according to age group: millennials are the most favorable, with 52% believing that their company devotes a good level of effort to DEI, and 32% deeming these efforts insufficient. Generation X follows with 57% and 22%, while baby boomers are the most satisfied, at 63% and 12% respectively.
DEI, a growing market
The economic argument should also be taken into account. According to Business Wire, The global DEI market was estimated at $9.4 billion in 2022, and is expected to reach $24.4 billion by 2030, with a compound annual growth rate of 12.6%. Rather than a collapse of efforts in this area, this projection suggests a continued expansion of investment.
Also, as mentioned earlier, 65% of companies plan to maintain their financing. of DEI, and 22% plan to increase this by 2025. Even among companies that are reducing their DEI budgets, only 11% plan to eliminate these initiatives altogether by 2025. A mere 8% anticipate that their DEI programs could be discontinued within the next four years.
Supplier diversity programs are popular
Furthermore, on January 20, 2025, the Trump administration argued that DEI initiatives, such as set-aside contracts for small and diversified suppliers, are “public waste” and detrimental to the performance of the federal government.
The data available on nearly 40,000 U.S. federal construction contracts between 2011 and 2022 show that diversity and small business suppliers do not cause more cost overruns or significant delays than large suppliers. In fact, when they win contracts through set-aside programs, their performance is even better: 2.7% fewer cost overruns and 2.1% fewer delays than when they win contracts through open competition.
What’s more, these suppliers performed better than the large companies who won their contracts in open competition, with 2.6% fewer cost overruns and 4% fewer delays. These results can be explained in part by increased competition in set-aside tenders, which attracts more bidders and delivers better value, as well as by rigorous pre-selection of qualified suppliers.
These findings therefore reinforce the argument that supplier diversity is not an impediment to performance, but an economic asset. Large companies that invest in supplier diversity, such as UPS or Starbucks, improve not only their reputation, but also their operational efficiency.
An adaptation, but not an abandonment
According to a recent study, 53% of US companies have adjusted their DEI terminology both internally and externally over the past year, and 20% are considering similar changes. However, even if some companies are changing their approach, notably by adjusting their terminology towards broader concepts such as “inclusion” or “belonging”, they are not giving up on their objectives for all that. In fact, only 9% of American executives plan to reduce external communication on DEI, and only 3% plan to do so internally.
A trend confirmed by the figures
The perception of a decline in DEI initiatives is not new, and has its origins in the USA well before 2025. Legal challenges and the rise of a critical discourse towards these initiatives have been gaining ground for several years, particularly following certain court rulings and public debates. Although this reality has been discussed for several years south of the border, it is only recently that the subject has gained momentum in Quebec, amplified by media coverage and certain corporate reactions.
The United States has been having this discussion for some time, and Paradigm, an American firm specializing in DEI, has compared the results of their 2023 dataset, which included 143 organizations, with their 2024 data. It found that in 2024, organizations’ overall DEI efforts increased compared to previous years:
60% of companies surveyed have a DEI strategy – an increase of 9 points compared with 2023.
66% have a DEI budget – an increase of 12 points compared with 2023.
73% are committed to DEI as part of their corporate values – almost unchanged from 2023 (72%).
40% have a senior manager fully dedicated to DEI, compared with 27% in 2023.
63% have partnerships with DEI-focused organizations (e.g. those supporting women, underrepresented racial/ethnic groups and the LGBTQ+ community), compared with 54% in 2023.
In conclusion
Far from a collapse of DEI, the data rather point to a period of readjustment and consolidation. While some companies are reducing or adapting their strategies under political pressure, the vast majority are maintaining or strengthening their commitment. DEI remains an essential issue for employees, shareholders and corporate performance, making its continued use an inevitable trend.
This article will be continuously updated as new data becomes available. If you have relevant figures to share with us, please send them along with your sources to info@urelles.com.
