US political and legal pressure on DEI is creating a growing disconnect with investor expectations, forcing boards to navigate conflicting risks between regulatory exposure and shareholder governance norms.

US telecommunications giant AT&T has U-turned on its decision to exclude a diversity, equity and inclusion-focused (DEI) shareholder proposal from its 2026 proxy materials following a lawsuit from investors.

A challenge to US President Donald Trump’s high-profile executive orders against diversity, equity and inclusion (DEI) programmes has been rejected by an appeals court.