In International Financing Review, Jennifer Cormier Examines DEI Challenge Over Sustainability-Linked Bonds Diversity Targets

In The News
March 3, 2025

Under pressure to scale back diversity, equity and inclusion (DEI) initiatives, companies that issued sustainability-linked bonds with diversity targets now face a challenge to pay a penalty or risk becoming a target.

In an International Financing Review article, employment partner Jennifer Cormier discussed how a Trump administration executive order has focused on DEI programs at private employers.

Jennifer notes that although laws permit aspirational targets for diversity metrics, having a specific percentage or quota presents legal risks. “These DEI numerical targets could raise issues, especially if it is directly linked to a financial incentive,” said Jennifer.