Key takeaways:
- Most enterprises are keeping DEI-related info in their reports, but nearly two-thirds of leaders are changing how they present it.
- Terminology is shifting, with some teams leaning toward words like “belonging and inclusion,” “culture,” or “corporate impact.”
- Legal teams are more involved in impact reporting than ever. Formal review processes and cross-functional working groups are helping teams stay aligned and compliant.
With executive orders, increased scrutiny, and public sentiment reshaping the conversation around DEI, environmental, social, and governance (ESG), and social impact, leaders are evaluating what DEI data to disclose and how to do it responsibly.
One thing is clear: DEI still matters to stakeholders, but the expectations around language and framing are evolving fast.
That’s why the ESG & CSR Board brought senior ESG, sustainability, and social impact leaders together for a confidential conversation. Members discussed how they’re navigating a more complex environment for impact reporting in 2025.
The takeaway? While few are backing away from the work, many are rethinking how to frame it, where to place it, and how to align with business strategy in a way that’s both defensible and authentic.
DEI Isn’t Going Away, but Its Presentation Is Changing
One clear takeaway from our confidential discussion with ESG & CSR Board members: DEI will continue to have a place in ESG reports, even if its footprint may be changing.
When we polled leaders on whether they’re adjusting how they present DEI-related efforts this year, nearly two-thirds said yes.
How are they adapting?
- Integrating DEI data where it connects most clearly to business strategy. For example, within broader talent narratives
- Reporting the same metrics as previous years, but with greater care around what gets highlighted up front.
- Shifting DEI data to the back of reports or scaling back references to specific goals.
Despite the Changing Environment, Diversity is Still a Stakeholder Priority
While the landscape around DEI commitments remains in flux, leaders reaffirmed that diversity is still a stakeholder priority. One member successfully advocated for keeping DEI information in their reports based on a recent double materiality study showing diversity as a top stakeholder issue.
These sentiments align with a recent DEI Board report, where 81% of responding DEI leaders said stakeholder support is remaining steady, and leadership support actually increased.
How Do You Ensure Compliance with Uncertain Legal Directives?
Perhaps the most pressing concern voiced by ESG leaders is the current ambiguity around federal compliance requirements. Members agreed that what compliance looks like with federal directives is really unclear.
This challenge is particularly acute around parity goals and ensuring these aren’t misconstrued as quotas. One member described their team’s time-consuming process of working through all the various ways a goal, language, or program could get construed in a way that looks noncompliant.
Despite these complexities, their company’s commitment to equity remains unwavering, even as execution methods evolve.
Legal Has Become an Essential Partner
“I have never been more in touch with legal than in the last several weeks,” one member admitted, drawing nods of agreement from others in the discussion. This heightened collaboration has prompted many organizations to formalize their processes around DEI communications and reporting, including:
- Cross-functional working groups that bring together legal, HR, and other stakeholders to collaborate on decisions
- Self-assessment guidelines that help teams evaluate content before formal legal review
- Streamlined review processes that eliminate time-consuming sidebar conversations and email chains
One smart strategy shared on the call was internal review checklists, developed in partnership with legal, that teams can use to self-assess content before it moves forward. The criteria include:
- Does the language feel exclusionary?
- Could a goal be inferred from the data, even if it’s not stated outright?
- Is the framing fact-based and grounded in business relevance?
ESG Leaders’ Practical Steps for Risk Mitigation
ESG leaders shared several tactical approaches for managing compliance risk while maintaining transparency:
- Ensure consistency across all public documents — 10-K filings, proxy statements, and corporate responsibility reports must align.
- Expanding workforce data disclosure to include all available categories can lower perceived risk around continuing to release diversity data.
- Tie DEI programs explicitly to business objectives — whether through talent retention, stakeholder materiality, or operational effectiveness.
Some organizations are broadening rather than restricting their disclosures. As one member explained, sharing comprehensive workforce data demonstrates transparency rather than selective reporting, while grounding initiatives in clear business rationale provides both strategic alignment and potential legal defensibility.
And for many, that also means changing the label. In a live poll during our call, “Belonging and Inclusion” emerged as the most common alternative to “DEI,” followed by terms like “Culture” and “Corporate Impact.”
Navigate Impact Reporting with Confidence Through Peer Insights
Impact reporting in 2025 requires strategic thinking, legal alignment, and insights from those facing the same complex challenges.
At the ESG & CSR Board, senior ESG and sustainability leaders from Fortune 500 companies come together for confidential discussions, real-time benchmarking, and tactical guidance on navigating today’s evolving landscape.
Join the ESG & CSR Board to access exclusive peer insights and develop your approach to DEI reporting with confidence in 2025 and beyond.
