ARTICLE
24 March 2025

Pressures On DEI Initiatives Lead Public Companies To Revise Risk Factors

JD
Jones Day

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Jones Day is a global law firm with more than 2,500 lawyers across five continents. The Firm is distinguished by a singular tradition of client service; the mutual commitment to, and the seamless collaboration of, a true partnership; formidable legal talent across multiple disciplines and jurisdictions; and shared professional values that focus on client needs.
It is no secret that companies are grappling with how to address countervailing pressures on diversity initiatives in this first quarter of the second Trump administration.
United States Corporate/Commercial Law

It is no secret that companies are grappling with how to address countervailing pressures on diversity initiatives in this first quarter of the second Trump administration. This issue is front and center as U.S. public companies review their public filings, in particular their risk disclosures about DEI. Like other companies, The Gap, Inc. is one of the latest to add language to its 10-K describing the risks of these pressures. Following the wave of companies before it, it also revised how it talks about those initiatives, "using 'inclusion and belonging' instead of 'diversity, equity and inclusion' in some sections of its report." As we move into the second quarter with the Anti-DEI executive orders enjoined but looming, companies will track these evolving disclosure trends and keep an eye on any impacts to their DEI initiatives.

The Gap, Inc. told investors on Tuesday that heightened scrutiny of corporate diversity, equity and inclusion initiatives posed a risk to its business.

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