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Last Monday, newly inaugurated President Donald Trump declared that the US government would officially recognize only two genders: male and female. Meanwhile, at the World Economic Forum in Davos, corporate leaders were celebrating a milestone in diversity initiatives.
This celebration focused on an executive who shared a personal story involving a transgender employee who had achieved her dream of adopting a daughter and providing a home for her mother. The executive, Priya Agarwal Hebbar, leads Hindustan Zinc, a mining company in India, and serves as a non-executive director at the Vedanta Group, founded by her father, Anil Agarwal.
The juxtaposition of a progressive mining leader amidst a corporate culture resounding with support for environmental and diversity measures highlighted the ongoing tension with Trump’s vision for corporate America.
Hebbar was not alone; many other leaders in Davos affirmed that the push for diversity and environmental responsibility, which they adopted years ago, would not change. Uber CEO Dara Khosrowshahi emphasized the importance of a diverse workforce as beneficial to business operations in an interview during the event. Similarly, Ralph Lauren’s Patrice Louvet observed that overlooking the diverse consumer base would be shortsighted.
Yet Trump’s stance against what he deemed “discriminatory” diversity, equity, and inclusion (DEI) measures raised concerns among industry leaders. There were no direct attacks from CEOs at the forum akin to Trump’s rhetoric, but some executives referenced the need for meritocracy and inclusivity in their remarks.
Rich Lesser, global chair of the Boston Consulting Group, discussed the necessity of fostering an environment where everyone feels included and is given a fair chance to succeed. Trump’s renewal of merit-based principles might inspire some corporate giants to downscale their DEI initiatives, similar to recent moves made by Meta, McDonald’s, Walmart, and others.
The situation is further complicated by Trump’s push to revive fossil fuel prominence. Wall Street’s withdrawal from sustainability commitments post-Trump’s re-election has led to speculation regarding the future of corporate sustainability within banking sectors.
Despite this, 40 executives convened in Davos to promote initiatives that support environmental protection, highlighting a contrasting narrative in the ongoing debate about environmental, social, and governance (ESG) criteria. Many leaders shared that their experience has shown the financial benefits of sustainability measures.
For instance, Jesper Brodin, CEO of Ingka Group, the primary retailer of Ikea, noted that focusing on emission reductions has not only helped the environment but has also contributed to a 24 percent revenue increase since 2016 alongside a 30 percent decrease in carbon emissions. Similarly, Australian billionaire Andrew Forrest of Fortescue Mining emphasized the economic rationale behind green initiatives, noting the risks associated with neglecting climate factors.
photo credit: www.ft.com
