Three years ago, I wrote an editorial for our inaugural DEI Issue heralding the overdue and rising attention that was being bestowed on diversity, equity and inclusion in the workplace — but in such a short period of time, the tide is already turning.
The rhetoric demonizing DEI began to gain momentum after a ruling by the U.S. Supreme Court in July 2023 that outlawed affirmative action in college admissions. Over the next year, big employers like Ford Motor Co., Lowe’s Companies Inc., McDonald’s Corp., Meta, Target Corp. and Walmart Inc. started rolling back their DEI initiatives as they faced pressure from conservative groups. And then President Donald Trump returned to the White House and signed off on terminating every single DEI program across the U.S. federal government.
Read: Is DEI dead, rebranding or undergoing a natural evolution?
Earlier this month, I spoke with Marcie Hawranik, founder of Canadian Equity Consulting, who told me the work around DEI has always been a non-linear evolution, tracing it all the way back to the Civil Rights Movement and the development of the Canadian Human Rights Act.
“Every wave of social progress is followed by a wave of backlash. [We had] this great momentum for DEI work and now we’re experiencing this backlash and it’s normal for that to occur.”
In spite of the push back against DEI, Benefits Canada prides itself in being a part of the ongoing evolution, which is clear in several features in our third annual DEI Issue. The Cover Story, which accompanies the 2025 Top 40 Money Managers Report, asks how institutional investors and money managers are approaching this shift.
Jennifer Coulson, senior managing director and global head of environmental, social and governance at the British Columbia Investment Management Corp., says the investment organization remains unmoved by the DEI backlash. It recently updated its proxy voting guidelines to reinforce its expectation that investee companies consider all forms of diversity in their director recruitment processes and adopt formal diversity policies, including timelines and targets to improve representation, both on the board and in senior management roles.
Read: 2025 Top 40 Money Managers Report: How institutional investors are grappling with the DEI backlash
“There are very few people who would argue that having a diverse group of voices around the table is going to be a bad thing from a decision-making perspective,” says Coulson. “As institutional investors, this is a chance for all of us to convey a consistent message that our expectations have not changed and that this does matter for corporate governance.”
For the Employer Strategy, Ramneet Aujla, chief human resources officer at Metrolinx, says the organization’s DEI initiatives are woven into the fabric of how it operates. A few years ago, it introduced a dedicated inclusion and engagement department, as well as several resources, such as an equity lens tool, inclusive workplace guides and educational sessions.
“We know that fostering an inclusive culture isn’t a one-time effort, it’s an ongoing commitment that requires action and accountability and continuous learning. And our goal has really been to ensure that each employee feels respected and valued and empowered to thrive.”
Read: How Metrolinx is prioritizing resources and support for women in the workplace
Read: Are Sharia-compliant investment funds becoming more common in DC lineups?
In the Investment Update, we look at Sharia-compliant funds in defined contribution plans’ investment lineups. The Canadian workforce is increasingly diverse, but religious restrictions have historically prevented Muslim employees from participating in a group retirement plan, says Michael Banfield, head of Canada retirement investment product and head of global retirement investment partnerships at Manulife Financial Corp.
Following a review of its DC investment offerings in 2023, Bayer Inc. introduced a Sharia-compliant fund. “Given our diverse workforce and an ask [from a plan member], we understood the need for alternative investment options for employees that best suit their needs and religious affiliations,” says Paula Moore, the organization’s vice-president of tax and treasury.
Another example of an employer leading the way on DEI is in the Q&A, where Michelle Kostiuk, director of corporate HR services at the Canadian Bank Note Co. Ltd., shares how the organization is prioritizing women’s health and fostering a more inclusive and equitable health-care environment.
Read: Q&A with Canadian Bank Note Co.’s Michelle Kostiuk
Regardless of the backlash, DEI continues to seep into all aspects of the workplace, whether that’s at the board level, in pension portfolios, investment lineups, group benefits plans or HR policies. The words may change and the priorities may evolve, but the broader concept isn’t going anywhere.
Jennifer Paterson is the editor of Benefits Canada and the Canadian Investment Review.