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Inclusion was once the headline. Now, it’s slipping quietly into the small print.
Across the US, and increasingly here in Europe, we’re seeing a subtle but significant retreat from ED&I (or DEI, depending on your side of the Atlantic). Once heralded as a cornerstone of future-focused workplaces, inclusion strategies are being repackaged, renamed or quietly absorbed into broader ESG (Environmental, Social and Governance) frameworks.
But beneath the surface of these changes lies a growing sense of unease.
The question is no longer whether businesses should invest in ED&I, but rather, why so many seem to be stepping back.
From Centre Stage to Supporting Act
After several years of high-profile commitments and expansive programmes, some businesses are rethinking their approach.
Economic pressures, political polarisation and mounting demands for ROI are driving a quieter, more cautious tone. For many organisations, ED&I hasn’t disappeared – it’s simply been repositioned. Wrapped into ESG strategies or rebranded with softer language like “belonging” or “culture”, inclusion is still there… just harder to spot.
But this repositioning can have real consequences. When ED&I is watered down or hidden under a broader umbrella, it risks losing the clarity, accountability and visibility it needs to make an impact.
The Data Behind the Shift
Recent figures from open sources paint a revealing picture:
- 76% of large employers (those with 5,000+ staff) are now reporting ED&I as part of ESG disclosures.
- 42% of HR leaders say ED&I programmes have been “absorbed” into ESG or social values agendas.
- 35% of companies have removed identity-specific language – replacing “diversity” with softer terms like “belonging.”
- 24% report a reduction in ED&I-specific staff or budgets since late 2023.
What we’re witnessing isn’t an overnight U-turn – it’s more like a quiet fading of focus.
Looking West: The U.S. Influence
The shift is being felt most prominently in the U.S., where the political climate has made ED&I a more contentious issue. From the rollback of DEI measures in the U.S. Foreign Service under the Trump administration to recent decisions by high-profile companies like Google and Accenture to scale back public efforts, the message is clear: the ED&I landscape is changing fast.
And this change doesn’t stop at national borders.
Multinational firms are making different decisions for different regions. Some, like Deloitte, Citigroup, Aldi and Disney (Channel 5), have paused or scaled back DEI efforts in the U.S. while continuing them in the UK. Apple has held firm in both countries, but is now facing pressure to follow suit stateside.
Even UK-led brands are shifting their tone. Vodafone, Sainsbury’s, BT, HSBC, Ocado and Rolls-Royce have all softened or rephrased their inclusion messaging in recent months. On the other hand, companies like NatWest, Co-op, Aviva and Channel 5 are staying the course, continuing to set and report against ED&I targets.
Mixed Messages, Real Consequences
Here’s the problem: employees notice.
When inclusion is deprioritised, or perceived to be, trust starts to erode. In some organisations, staff report feeling disillusioned, as if ED&I was never truly embedded but rather treated as a short-lived PR push. The result? Lower engagement, reduced psychological safety, and a growing sense that leadership’s values might not align with their own.
This isn’t just a cultural risk – it’s a commercial one. Younger generations of talent are deeply values-driven. For many, a visible commitment to inclusion is no longer a “nice to have” but a baseline expectation. And when organisations send mixed signals, it can push top talent away.
Inclusion Can’t Be Quiet
So what now?
If ED&I is to survive and thrive in this new landscape, it can’t be passive or vague. It needs to evolve with transparency, accountability and an authentic sense of purpose. That means:
- Clear communication about what ED&I looks like in practice
- Consistency across regions and departments
- Courage to stay the course, even when the political climate makes it harder
ED&I might be at a crossroads – but the direction you choose says everything about your culture, your leadership and your future.
