Deloitte UK Splits With US Over DEI—Will Others Follow?

Deloitte recently shared that it would scrap its diversity goals and urged government contract employees to remove gender pronouns from their email signatures. However, in the UK, Deloitte’s senior partner and chief executive Richard Houston informed staff in an email that diversity “remains a priority” despite the US firm’s plans for DEI.

Deloitte US rolling back on DEI efforts.

The Financial Times reported that the firm told consultants to remove pronouns highlighting their gender from external emails to align with emerging government client practices and requirements,” as stated by people with similar details.

Additionally, the company emailed employees to inform them that it would “sunset” its diversity goals, its yearly diversity, equity, and inclusion report, and the firm’s DEI “programming.”

Deloitte previously outlined a list of DEI goals it hoped to achieve by 2025. These included spending $200 million with “Black-led businesses” and expanding the gender balance and ethnic makeup of its US partners, principals, and managing directors.

Deloitte UK continues to champion DEI

While Deloitte US is closing some DEI programs, in the UK, the firm announced that it will not change its DEI efforts. Deloitte’s UK senior partner and chief executive Richard Houston sent a memo to staff stating, “Events in the external landscape do not change our commitment to building an inclusive culture and helping all our people reach their full potential,” as stated by The Financial Times.

He explained that the recent changes in the US “reflects the need to remain fully compliant with federal laws. [US leadership] have also been clear that they remain committed to fostering an inclusive culture and sense of belonging for all.”

DEI In Europe

As companies continue to roll back DEI efforts in the US, European firms also see fewer references to DEI. According to Bloomberg, an analysis of the income calls of Stoxx Europe 600 companies highlights that mentions of DEI reached their lowest point since 2020.

Will European firms follow the US and sunset their DEI initiatives? Dimitar Markov, director of the law program at the Center for the Study of Democracy, told Euronews that DEI programs are not compulsory in Europe. Still, the European Commission often encourages companies to participate in DEI initiatives.

He adds that the Commission has also adopted numerous policies on gender equality, anti-racism, LGBTIQ+, and the rights of persons with disabilities that coincide with DEI principles. Companies with over 500 employees usually embrace DEI.

Image: Reuters