Under Pressure: U.S. Companies Delay DEI, ESG Reports Amid Political Backlash

More major U.S. companies are quietly delaying or cancelling their annual sustainability and diversity reports as political scrutiny intensifies, especially under the renewed influence of the Trump administration.

Nike, once vocal about its diversity efforts, will not publish its usual corporate impact report this year—a departure from a tradition dating back to at least 2001. According to The Business Times, the decision places Nike alongside firms like JPMorgan Chase, Constellation Brands and Akamai Technologies, which have also postponed or altered the release of similar reports.

While not required by law, most S&P 500 companies released environmental, social and governance (ESG) disclosures in 2024. These reports often outline goals related to carbon emissions, workforce diversity and broader corporate responsibility.

Pushback began several years ago when conservative lawmakers and activists criticized DEI (diversity, equity and inclusion) and ESG efforts. Since President Donald Trump returned to office, the movement has gained traction. Early executive orders eliminated federal diversity programs and narrowed gender definitions. Though none of the companies directly linked their delays to Trump’s policies, the political environment is clearly a factor.

“The consequences of reported information are much greater now than they were a decade ago,” said Martin Whittaker, CEO of Just Capital. He estimates that about 25% of companies are behind schedule in issuing ESG-related disclosures this year.

Each company cited different reasons. Nike said it will share updates on inclusion efforts through other channels. JPMorgan plans a consolidated ESG report later this year, noting it is “monitoring the evolving disclosure landscape.” Constellation Brands adjusted its timeline based on stakeholder feedback, while Akamai blamed vendor-related delays.

Pfizer, which usually releases its report by April, only did so this week, citing internal adjustments for changing global reporting rules.

The lack of transparency frustrates some shareholders, who rely on these reports to assess corporate values and risk. Still, activist investors say they understand the caution.

Executives are concerned about potential legal exposure. GianCarlo Canaparo of the conservative Heritage Foundation noted that Trump has asked agencies to identify companies for possible investigations tied to DEI practices.

“If you’ve used race preferences, you don’t want to get caught,” he said. “And if you haven’t, you don’t want to be dragged into proving it.”