Rights CoLab published What’s the Matter with DEI? A Reset (April 2026), developed through desk research, conversations with experts, a literature review and the authors’ professional experience. Through an analysis of 35 key sustainability frameworks, the report offers a roadmap towards fair, inclusive workplace cultures.
Human Level’s Take:
- The recent rollback in the US of diversity, equity and inclusion (DEI) policies means this topic is more important than ever for the private sector, including both companies and investors, to manage effectively. There is already evidence that rollbacks have negatively impacted some groups of workers, like women and Black women in particular.
- In addition to strong regulatory requirements in other jurisdictions, like the EU, there is a business case for action: some studies suggest that better equity and inclusion practices promote increased innovation, reduced turnover and absenteeism, and increase engagement. Others point to a possible link between market valuation, profitability and DEI practice.
- DEI practices also help companies meet their responsibilities to respect human rights under existing frameworks like the UN Guiding Principles on Business and Human Rights, ILO standards and regulations like the EU CSDDD — so this topic is not likely to disappear from companies’ radar, despite polarisation in the US.
- What does an effective DEI programme look like? Informed by a number of benchmarks, Rights CoLab outlines a roadmap for companies and investors to ensure business practices make the grade.
- This includes actions across five core categories: (1) governance and accountability (e.g., setting an anti-discrimination policy and ensuring board oversight); (2) hiring, promotion and dismissal (e.g., ensuring inclusive and non-discriminatory practices across the full employee lifecycle); (3) equitable and inclusive workplace (e.g., ensuring pay equity, accessible family leave and accommodations, and inclusive career development); (4) fostering worker security (e.g., paying a living wage, reducing the CEO-worker pay gap, and filling any gaps in social protection through company benefits); and (5) checking the effectiveness of programmes through a DEI health check (e.g., creating strong incident reporting and grievance mechanisms, tracking complaints to detect patterns, and regularly assessing demographics to identify possible embedded discrimination).
- Don’t forget: make sure that contingent, freelance and gig workers benefit from the same opportunities and protections as directly-hired employees, to make sure your DEI programme leaves no one behind.
Some key takeaways:
- A challenging space for DEI: The report highlights the current, challenging moment for diversity, equity and inclusion (DEI), especially for companies operating in the US where the Trump administration has rolled back laws and policies requiring companies to implement DEI initiatives. In response, a number of companies have halted their own DEI programmes and reporting efforts. Similarly, investors—previously a strong pressure point for advancing DEI efforts within companies—have faced legal challenges from some US states for considering ESG issues, including DEI. However, the report also points out that there remains a strong case for maintaining DEI initiatives. In particular, the EU still maintains DEI-related requirements, including quotas for gender representation. In addition, the EU Pay Transparency Directive requires companies to disclose pay data, report gender pay gaps and act if gaps exceed five percent. This means that companies operating or selling into EU markets are still required to maintain certain components of DEI. The report also points to the business case for DEI. For example, some studies have shown links between inclusion and increased employee innovation, reduced turnover and increased employee engagement. Studies also suggest there may be links between equity and inclusion and profitability and market valuation.
- Tangible impacts of the DEI rollback: The DEI backlash in the US is having measurable negative impacts, especially for women. For instance, US companies’ performance on gender equality is declining, with far fewer ranking in Equileap’s top 100 (down to 7 in 2026 from 17 in 2023). In addition, federal workforce cuts and rollbacks of DEI programs have disproportionately affected Black women with around 300,000 Black women exiting the workforce between April–July 2025, according to Bureau of Labor Statistics data reported by The New York Times. These losses have broader economic consequences. For example, one expert estimates that a 1% drop in women’s labor force participation reduces US GDP by about $146 billion.
- What a DEI reset can look like: The report offers a roadmap for companies and investors to implement an effective DEI strategy. The roadmap has five categories with suggested actions under 16 topics. It is informed by a number of frameworks and indicators that companies are currently reporting against, like GRI, the draft EFRAG European Sustainability Reporting Standard, the World Benchmarking Alliance and other standards. The report flags the need to consider both own employees and contingent, gig and freelance workers in DEI initiatives, recognising the heightened workplace vulnerability faced by these workers. Below is a sample of key actions under each category and topic:
- Category 1: Governance and accountability. Key actions can include:
- Anti-discriminational policy: Set an anti-discrimination policy that covers all workers, including contingent workers and is overseen by senior management and the board.
- Board oversight: Ensure the board is responsible for assessing progress on policy and incorporate DEI performance into the board’s annual performance review.
- Category 2: Hiring, promotion and dismissal. Key actions can include:
- Hiring process: In crafting a job announcement, ensure job requirements are inclusive and equitable, using gender-neutral language and removing unnecessary degree requirements. During the screening process, ensure that AI tools have been formally assessed as bias-safe, provide reasonable accommodations, and build an inclusive interview panel that has been given anti-bias training
- Promotion process: Standardise performance review criteria for all workers, ensuring all workers have opportunities for performance assessment and advancement. Develop an appeals process and create career ladders for all job types and levels.
- Dismissal process: Make procedures and an appeals process clear, accessible and transparent, and avoid AI-driven work termination decisions to reduce the risk of bias.
- Category 3: Equitable and inclusive workplace. Key actions can include:
- Pay equity between identity groups: Assess gender and racial pay gaps for all workers, creating a time bound plan to address any gaps. Create standardised pay bands and prohibit hiring managers from basing salary decisions on workers’ previous salary.
- Family care leave: Implement a family leave policy for all workers including contingent workers and workers with atypical families, and track who uses leave to ensure all workers are taking it equally.
- Career development: Develop mentoring initiatives accessible to all workers and ensure a diversity of workers is participating. Hold leadership accountable for creating a culture of career development.
- Reasonable accommodations: Offer disability and gender-aware accommodations throughout employment, consider offering flexible work, and ensure workspaces are designed for inclusion, including people with disabilities or gender-specific needs.
- Category 4: Fostering worker security. Key actions can include:
- Living wage: Pay a living wage based on assessments like the MIT Living Wage Calculator, Anker and Wage Indicator methodologies, Ensure contingent workers are also paid a living wage.
- CEO-worker pay gap: Assess the pay gap and take steps to bridge it. Consider as well options for worker ownership.
- Social protection: Assess the level of government social protection in key operating locations and if there are gaps, provide benefits that bridge them, publicising this to all workers.
- Category 5: DEI health check. Key actions can include:
- Incident reporting mechanism: Create a reporting channels ensuring anonymity, safety, anti-retaliation and survivor-centered design. Ensure grievance mechanisms meet the effectiveness criteria established in UN Guiding Principle 31 and analyse the effectiveness of channels.
- Complaints and controversies: Track and analyse discrimination-related complaints to pinpoint locations where discrimination might be an issue, assessing timeliness and effectiveness of responses and developing improvement plans.
- Discrimination risk management: Track demographics to understand if embedded discrimination is affecting promotions, internal hires, and voluntary and involuntary exits. Supplement this with employee engagement surveys and in-depth exist interviews to hear workers’ perspectives.
