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.
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