In our last blog, we reaffirmed our commitment to diversity, equity, and inclusion (DEI) as a core value not only at Climate People but in all of climate hiring. However, a growing trend among organizations scaling back DEI initiatives has raised concerns about the future of these efforts. This blog takes a holistic look at the current landscape and highlights why DEI remains indispensable, particularly in the fight against climate change.

The Political Landscape

We’ve all seen the headlines: political forces are playing a significant role in the recent DEI rollbacks:

• The rise of anti-“woke” movements has led to state-level legislation targeting DEI programs in public institutions and private companies.
• The U.S. Supreme Court’s decision on affirmative action has influenced corporate policies, contributing to a decline in diversity-focused hiring initiatives.
• Skepticism toward Environmental, Social, and Governance (ESG) goals has intensified, with critics challenging the business case for DEI and sustainability.

As political and economic pressures mount, companies must resist the urge to deprioritize DEI and instead integrate it into their long-term strategies.

‍Why Is This Happening?

‍Several factors are driving the rollback of DEI initiatives:

• Economic Pressures: Many organizations are experiencing budget cuts and layoffs, with DEI teams often among the first to go. Programs perceived as “non-essential” are being deprioritized despite their long-term benefits.
• Backlash and Resistance: Some critics argue that DEI initiatives create division rather than inclusion, and internal “DEI fatigue” has led to resistance within companies.
• Challenges in Measuring ROI: Some leaders struggle to tie DEI efforts to immediate financial performance, reinforcing the perception that these initiatives are symbolic rather than substantive.

Companies Scaling Back

‍Several major corporations have recently reduced or eliminated DEI initiatives:

• Meta, McDonald’s, Target, and Walmart (the list goes on and on) have all scaled down DEI programs, citing cost-cutting measures and shifting business priorities.
• The tech, retail, and manufacturing sectors have been particularly affected, with hiring slowdowns disproportionately impacting DEI-focused roles.

These rollbacks have significant consequences. When DEI programs are cut, marginalized communities—who already face systemic barriers—lose access to opportunities that promote equitable hiring and workplace inclusion. This is particularly concerning in the climate sector, where diverse voices are essential for addressing the intersection of environmental and social justice issues.

‍The Importance of Diversity: Evidence and Insights

‍Research consistently shows that diverse organizations perform better:

• A McKinsey report (2020, 2023) found that companies with diverse leadership teams are significantly more profitable than their less diverse counterparts.
• A Boston Consulting Group study (2018) revealed that diversity drives innovation revenue, making it a business imperative.
• Organizations that prioritize DEI also experience higher employee retention and satisfaction, reinforcing long-term stability and success.

Beyond business success, DEI is fundamental to climate work. The communities most disproportionately affected by climate change—low-income communities, BIPOC populations, Indigenous groups, and people in the Global South—often contribute the least to the problem. Despite this, these communities are frequently underrepresented in leadership and decision-making spaces.For example:

• A U.S. Environmental Protection Agency (EPA) report confirms that underserved communities face the most severe harms from climate change despite contributing minimally to emissions.
• Research published in The Lancet Countdown highlights the heightened vulnerability of marginalized communities to extreme climate events such as heat waves, floods, and wildfires.
• The Justice40 Initiative, which sought to direct 40% of federal climate and environmental investments to disadvantaged communities, was rescinded under the Trump administration, undermining efforts to prioritize these communities. Despite this setback, the core principle behind Justice40 remains a vital one: that climate solutions must be equitable to be effective. Without the involvement of the communities most affected by climate change, solutions risk being incomplete and inequitable.

These findings make it clear: climate solutions will not be wholistically effective unless they are equitable. If the people most affected by climate change are left out of the conversation, we risk implementing solutions that do not address everyone.

‍Resilience in the Face of Change

‍Despite external pressures, we believe that the most successful companies will remain committed to DEI. The can do this by:

• Focusing on long-term impact rather than short-term economic challenges. As recruiters, we consistently see the ups and downs of the market, to make holistic hiring decisions, your scope must be longer than the next few months.
• Developing measurable, actionable DEI initiatives that go beyond performative gestures. Invest in your teams who know how to drive real action in this space. Look at the data and understand that you’re likelihood of performance with a diverse team is far to surpass that of a non-diverse team.
• Embedding DEI into company culture so that it becomes inseparable from overall success. Climate is an intersectional issue, and in order to address the full scope of these issues, we must have diverse perspectives on every team.

The climate sector, in particular, has a responsibility to lead by example:

• Climate solutions require diverse perspectives to be truly effective, ensuring that policies and innovations are not just created for marginalized communities but with them.
• Companies in climate hiring should actively recruit from diverse talent pools to strengthen the industry’s resilience and innovation capacity.
• Reaffirming DEI is a moral and business imperative—it’s not just about fairness but about ensuring that climate action is as impactful as possible.

DEI is not a “nice-to-have” feature—it is a cornerstone of progress in both business and climate action. Rolling back these efforts may seem like an easy way out in the short term, but the long-term consequences—both ethically and financially—are significant. By committing to inclusive hiring, leadership, and decision-making, we ensure that climate solutions are just, effective, and representative of those who need them most