Following on the first report in its 2024 ESG Series, Teneo Insights recently published its second report analyzing diversity, equity, and inclusion (DEI) disclosures in 250 sustainability reports published by S&P 500 companies between January 1 and June 30, 2024. The report highlights a number of interesting findings, which are briefly summarized below and may serve as a useful guide to companies preparing their sustainability reports.
- [DE]I Will Survive. As noted in its first report, 94% of companies continued to use the term “DEI” in some form in their reports despite recent backlash, a modest decrease from last year (99%). For those that adjusted their DEI disclosure, most did so to focus more broadly on themes of inclusion, culture, and belonging.
- Demographic Data Remains Strong. 97% of companies include demographic data in their reports, with two-thirds of companies using both company-specific demographic categories and Equal Employment Opportunity Commission (EEOC) classifications. The report notes a 32% rise in EEO-1 report disclosures compared to last year.
- DEI Goals. 43% of companies include quantitative, time-bound DEI goals in their reports (with almost 80% of these goals unchanged from last year), down 4% from last year. The most common goals are representation goals (one-third of companies) and supplier diversity goals (14%).
- Targeted Talent Programs. 67% of companies reference targeted talent programs in their reports (i.e., mentorships, fellowships, internships, and scholarships focused on specific demographics).
- Supplier Diversity Programs. 78% of companies reference supplier diversity initiatives.
- Pay Gap Disclosure. Nearly two-thirds of companies mentioned conducting pay gap audits, although only 45% disclosed the results, compared to 40% last year (most disclosed were global gender pay gaps and U.S. race/ethnicity pay gaps (reported by 40% of companies). 42% of companies report using third-party assurance for these audits, compared to 33% last year.
