Asset Managers Push Back Against DEI Rollbacks

 Major European asset managers, including Schroders and Royal London Asset Management, are taking a firm stance against U.S. companies that have rolled back their diversity, equity, and inclusion (DEI) commitments. In the wake of a growing trend among American firms to retreat from public diversity pledges, these UK-based investors have made it clear that such moves could come with consequences.

Both Schroders and Royal London have confirmed they are increasing engagement with companies where diversity standards have weakened. This includes pushing for transparency around board-level representation, inclusion targets, and the treatment of DEI as a core governance issue. If companies are found to be actively reversing progress, the asset managers have indicated they may vote against directors at upcoming annual general meetings.

The action comes amid growing concern that political and legal pressure in the United States has led to a backlash against DEI, with some corporations quietly removing diversity-focused language from public documents and rebranding internal initiatives. For UK investors managing billions in global assets, these developments raise red flags — not only from an ethical standpoint but as a potential threat to long-term performance.

Schroders stated that the integration of DEI is a key part of its stewardship framework. It believes that companies with inclusive leadership and diverse workforces are more resilient, more innovative, and ultimately more profitable. Similarly, Royal London Asset Management has reiterated that it expects investee companies to treat diversity and inclusion as a business imperative, not a political choice.

This renewed commitment signals that DEI remains firmly on the agenda in the UK investment community. Far from stepping back, asset managers are stepping up — using their shareholder influence to ensure that diversity and inclusion stay embedded in corporate governance, regardless of shifting political landscapes.