KPMG US has decided to discontinue its diversity, equity, and inclusion (DEI) strategy aimed at underrepresented groups. This move follows a trend among other major firms responding to changes in the legal environment surrounding DEI initiatives. The firm's leadership emphasized their ongoing commitment to inclusivity while adapting to new regulations. Launched in 2020, the Accelerate 2025 program sought to enhance diversity within the organization but is now being phased out due to evolving federal policies.

Adapting to Changing Regulations

The decision by KPMG US to terminate its DEI strategy reflects broader shifts in corporate America’s approach to diversity initiatives. Paul Knopp, chair and CEO of KPMG US, acknowledged that recent changes in the legal landscape have prompted this adjustment. The firm will reassess its programs and initiatives to ensure compliance with current laws and regulations. While the Accelerate 2025 program was initially designed to promote greater representation from diverse backgrounds, it is now being brought to a close.

Knopp highlighted that the firm remains steadfast in its dedication to fairness and inclusivity. He noted that the termination of specific DEI metrics and transparency reports does not signify a retreat from these values. Instead, it represents an adaptation to the evolving regulatory environment. The firm aims to maintain its commitment to diversity while adhering to legal requirements. KPMG US will continue to explore alternative ways to foster an inclusive workplace culture. The firm’s website updates reflect these policy changes, ensuring accuracy and alignment with current practices.

Evaluating the Impact on Diversity Initiatives

The discontinuation of KPMG US’s DEI strategy raises questions about the future of diversity efforts within the company. Launched in response to the Black Lives Matter protests in 2020, the Accelerate 2025 program had ambitious goals for increasing representation among underrepresented groups. Despite the program's end, the firm has made significant strides, with nearly half of its partners and managing directors coming from diverse backgrounds as of September 2023. However, the firm acknowledges that more work remains to be done, particularly in increasing representation for Black and Latino/Latina Americans.

Knopp emphasized that while the firm is discontinuing certain aspects of its DEI strategy, it remains committed to fostering an inclusive environment. The decision to end forward-looking metric-based aspirations based on protected categories such as race or gender aligns with recent legal developments. KPMG US will focus on developing new approaches that comply with federal laws while continuing to prioritize diversity and inclusion. The firm plans to engage in ongoing dialogue with employees to address concerns and ensure that inclusivity remains a core value. Additionally, KPMG US will explore innovative methods to support underrepresented groups without violating any regulations.