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At Davos, Canada’s prime minister, Mark Carney, observed that “we are in the midst of a rupture, not a transition”. While he was referring to the global order, the same framing applies to sustainability and diversity, equity and inclusion (DEI).
After the Paris Agreement of 2015, companies began setting ambitious carbon-reduction goals. In 2020, George Floyd’s murder prompted calls for racial justice, leading many companies to reaffirm equity and inclusion commitments. The level of leadership attention, funding and supportive sentiment suggested real momentum.
Fast forward to 2025, the second Trump administration has rolled back climate legislation and intensified pressure on sustainability and DEI through lawsuits, funding removal, terminations, executive orders, regulation and public criticism. Crises like these invite clarity, forcing companies to focus on what they can control in sustainability and DEI.
Some organisations have opted to retreat, scaling back corporate DEI initiatives and cancelling representation targets. Other companies have stayed the course, but with a rebrand. As ‘woke’ language became weaponised, global companies renamed DEI functions to less charged terms like ‘inclusion and belonging’, ‘talent and opportunity’ or ‘culture’. ESG became ‘sustainability’, ‘responsibility’ or ‘impact’.
Yet, a few companies, such as Costco, actively showed resistance, rejecting calls to change its DEI practices and keeping its sustainability programme intact, grounded in its code of ethics and its mission to provide quality goods and services, and to take care of the people it works with.
Companies in Canada and the UK face different constraints. Although governments remain broadly supportive of DEI and climate action goals, tariff-driven uncertainty, rising compliance requirements and operations across global jurisdictions are making companies more cautious.
New laws focused on human rights due diligence, climate disclosure and greenwashing are prompting companies to reassess and communicate more carefully to avoid unwanted attention. In such destabilising times, how can organisations remain true to DEI and sustainability principles?
Be explicit about your values. Define how sustainability and DEI create value, and align them to business objectives to build resilience and longevity.
Be disciplined. Commit to only what is realistic, and resource it properly.
Collaborate strategically. Work with peers and partners to make joint commitments. There is safety in numbers; but beware of anti-trust scrutiny.
Keep your lawyers close by. Understand what is lawful in each jurisdiction, and remember that conditions can shift quickly.
Listen to core stakeholders. Stay tuned to the sentiment of your colleagues, shareholders, clients and customers; not just the loudest external voices.
Despite the noise, research continues to show that organisations that foster psychological safety, incorporate diverse viewpoints and address long-term economic, social and environmental risks are better positioned for the future. While today’s rupture may feel acute, staying the course on these fundamentals will build the durability to navigate whatever comes next.
Heather Mak is the Toronto-based co-founder of Diversity in Sustainability and an independent sustainability consultant
