In the space of four years, the chief diversity officer has gone from the most in-demand C-suite role in corporate America to the target of conservative activists.
After the US Supreme Court ruled last year that affirmative action can no longer be used in university admissions, a group of Republican state attorneys general sent a letter to Fortune 100 CEOs warning them of the potential consequences of using positive discrimination in hiring decisions.
In response to the DEI backlash in the US, many companies have rowed back on their diversity commitments. Zoom replaced its internal diversity and inclusion team with consultants, PwC dropped several of its diversity targets in the US and Eli Lilly removed any mention of DEI from its annual letter to shareholders. Outdoor-lifestyle retailer Tractor Supply Co is the latest US enterprise to cut DEI positions and abandon diversity and inclusion goals, after facing pressure from activists on social media.
Natalie Edwards, global chief diversity officer at National Grid, has a unique perspective on the situation. Based in the firm’s New York office, she oversees diversity and inclusion efforts in both the US and the UK. Although she acknowledges there are many similarities between the two countries, Edwards admits that resistance to corporate DEI initiatives in the US makes her job more challenging.
It’s in these moments that you realise how dedicated you really are to improving DEI
“It’s unfortunate,” she says, adding that much of the pushback stems from a misunderstanding of the purpose of DEI. “There are a lot of myths being perpetuated that have led to this backlash,” Edwards explains. “Some people argue that if we focus on one element of diversity, the needs of other groups will be ignored. But diversity is not a zero-sum game – if one person wins, another doesn’t lose.”
As a diversity professional, Edwards says she feels “sadness” at the state of the conversation in the US, warning that such discourse could reverse the progress many companies have made on DEI. “I think we’re going to see a lot of organisations that had previously committed to reflecting the communities they serve suddenly drop their resourcing and commitments,” she worries.
That said, some large organisations have maintained their efforts to improve diversity. For instance, more than a quarter (29%) of the 63 Fortune 100 and FTSE 100 companies analysed by talent platform Windō have significantly improved Black workforce representation since 2020; 16%, however, experienced a decline.
Despite the growing criticism, Edwards encourages companies to remain steadfast in their commitment to diversity and inclusion. “It’s one thing to be flexible in relation to changing circumstances,” she says, “but it’s another to only commit to something when times are favourable. It’s in these moments that you realise how dedicated you really are to improving DEI.”
Global outlook and local action
DEI backlash has been most fervent in the US, but Edwards has noticed attitudes change in Europe – particularly in relation to immigration and social diversity. “America’s issues are very much on display, but other countries have their own issues around inclusion too,” she says.
British companies are not immune to backlash over DEI initiatives. Wickes and Costa Coffee, for instance, have been branded “woke” by consumers for promoting transgender inclusion in public statements and marketing. And, earlier this year, former business secretary Kemi Badenoch claimed diversity and inclusion initiatives are “ineffective and counterproductive”.
Edwards says such disdain shouldn’t impact companies’ commitment to DEI, but she acknowledges that global diversity chiefs must be more agile and “respectful” of how DEI initiatives may be received in different countries.
“Being a responsible chief diversity officer means you always need to be scanning what’s happening externally,” she says. “You have to be aware of how the world is changing around you and make sure that you are moving accordingly.”
In practice, this means ensuring DEI programmes are guided by a global strategy, but are receptive to local sensibilities. “You have to have a global identification of the problem but empower people locally to actually drive the solutions,” Edwards explains.
Organisations should ask themselves if they are set up for success in a world that is changing rapidly
At National Grid, Edwards has decentralised diversity training through employee-led DEI networks. The global team provides resources and guidance across these networks, but employee groups in each jurisdiction decide the best ways to improve DEI in their locale. “They know the local community better than me,” she says. “It allows us to reach our employees where they are.”
Increasing the number of women in engineering is an example of an industry-wide issue that requires local solutions, Edwards says. Three-quarters of National Grid’s employees are men and addressing this gap has required partnering with local colleges and universities. It’s an approach that is starting to have an impact on the firm’s talent pipeline – 39.2% of National Grid’s senior managers are women.
However, the ethnic diversity of its workforce dropped 1.8 percentage points between 2022 to 2024. Moreover, only 17.6% of National Grid’s management is ethnically diverse. Clearly, there is still work to do.
Businesses have a responsibility, says Edwards, to reflect the communities in which they operate. “We are seeing unprecedented changes in our society, our customers and the world of business. Organisations should ask themselves if they are set up for success in a world that is changing rapidly,” she explains. “I invite any organisation to think about the cost, both in the short term and long term, of having a workforce that doesn’t feel like they belong.”
For Edwards, the role of the chief diversity officer is “more important than ever”, not just in spite of the growing backlash to DEI, but perhaps also because of it.
