U.S. Corporations ‘Recalibrate’ DEI Reporting to Dodge Legal and Political Heat
By Alex Rivera
Washington, D.C. – August 26, 2025
In a shifting political landscape marked by heightened scrutiny from regulators and conservative activists, major U.S. companies are increasingly toning down their public disclosures on diversity, equity, and inclusion (DEI) initiatives. A recent report from The Conference Board reveals that America’s largest firms have slashed mentions of “DEI” by a staggering 68% in their 2025 filings compared to the previous year, signaling a strategic pivot to minimize legal risks without fully abandoning internal programs. This trend, dubbed “recalibration” by industry insiders, comes amid fears of lawsuits, shareholder backlash, and potential enforcement of anti-DEI policies under the current administration.
The pullback is evident across the S&P 500, where the share of companies disclosing data on women in management plummeted from 71.2% in 2024 to just 55.1% this year. Similarly, disclosures on board racial and ethnic diversity have nosedived, with non-reporting firms jumping from 3% to 34%. Experts attribute this to a confluence of factors, including President Trump’s executive orders targeting what he calls “woke” corporate practices and a wave of litigation from groups alleging reverse discrimination.
“Companies aren’t ditching DEI altogether—they’re just reframing it to fly under the radar,” said Rebecca Thompson, a senior analyst at The Conference Board. “With 53% of S&P 100 firms adjusting their messaging in major filings this year, it’s clear that the goal is to protect against regulatory wrath while maintaining talent attraction efforts.” Thompson’s organization surveyed over 125 large U.S. and multinational companies, finding that 80% have recalibrated their broader environmental, social, and governance (ESG) strategies in response to policy shifts.
High-profile examples underscore the shift. Retail giants like Walmart and Lowe’s have announced scaled-back DEI commitments, citing “inherent tensions” in balancing inclusivity with business priorities. Tech behemoth Meta has followed suit, reducing emphasis on diversity metrics in public reports. Even European companies are adapting: Some are excluding the U.S. from global DEI pledges and scrubbing buzzwords from American-facing websites to align with local sensitivities.
The momentum gained steam after the 2024 election, with Trump’s victory emboldening anti-DEI advocates. In February, conservative commentator Christopher Rufo highlighted how leading ESG advisory firms eliminated DEI as a board assessment criterion, crediting executive actions for creating “massive legal liability” for pro-DEI stances. By March, the White House’s rapid response team touted reports of companies dropping DEI from annual filings as a “Trump effect.”
Investor pressure is intensifying the recalibration. Groups like the National Center for Public Policy Research have pushed shareholder proposals warning that DEI poses “litigation, reputational, and financial risks.” In November 2024, investors controlling $16 billion in assets issued an open letter urging firms to abandon “harmful” DEI policies, framing them as liabilities. However, not all companies are retreating quietly. Costco, for instance, forcefully rejected an anti-DEI shareholder proposal in January, arguing it would harm business and employee morale.
Legal experts warn that this disclosure dance could backfire. “Pulling back on transparency adds its own risks, including talent retention issues and potential SEC scrutiny for inconsistent reporting,” noted a recent Mintz advisory on public company practices post-January 2025. A Harvard Corporate Governance report analyzing SEC filings from 2022 to early 2025 echoes this, advising firms to navigate DEI disclosures carefully amid regulatory volatility.
On social media platform X, the topic is buzzing, with users debating the implications. One post from a White House-aligned account celebrated the changes as advancing an “America First” agenda, garnering thousands of engagements. Critics, meanwhile, argue that external forces like the SEC and asset managers such as BlackRock previously mandated DEI for financing, forcing corporate hands.
As the 2025 proxy season unfolds, analysts predict more companies will follow suit, prioritizing subtlety over spectacle in DEI communications. Yet, with talent wars raging in a competitive job market, the true test will be whether these behind-the-scenes efforts sustain workplace inclusivity—or merely mask deeper retreats.