Tech consulting giant Accenture has announced the rollback of its diversity, equity, and inclusion (DEI) programs globally, following Google’s recent decision to scale back similar initiatives. The move signals a broader shift in corporate policies as companies navigate legal and political challenges linked to diversity efforts, particularly in the United States.

In an internal memo sent on Friday, Accenture CEO Julie Sweet confirmed that the company would abandon gender quotas and other DEI-driven initiatives. This decision aligns with a U.S. policy shift under former President Donald Trump, which limits federal contracts for companies implementing DEI-focused hiring and training programs. The change ensures that Accenture Federal Services, which secures billions in U.S. government contracts, remains eligible for future business.

While the rollback was primarily driven by compliance requirements in the U.S., Sweet clarified that the policy shift would extend globally, including Australia and New Zealand, with adjustments based on local regulations and market needs.

Accenture’s decision has raised concerns within Australia and New Zealand’s business community, where diversity and inclusion remain key priorities. The company confirmed it would continue reporting to Australia’s Workplace Gender Equality Agency (WGEA) as per local legal requirements but would discontinue participation in external diversity benchmarking surveys and targeted career development programs.

“We are and always have been a meritocracy,” Sweet stated in her memo. “We are committed to an inclusive, merit-based workplace free from bias, where all employees have equal opportunity.”

Despite these assurances, DEI advocates in ANZ argue that removing structured diversity targets could hinder progress. Sarah Liu, Managing Director of DEI consultancy TDC Global, noted that some multinational firms are rebranding DEI initiatives under different names—such as ‘employee experience’ or ‘culture transformation’—to maintain diversity goals while avoiding compliance risks tied to U.S. regulations.

Accenture’s move comes amid broader uncertainty about corporate DEI commitments. While some multinational firms are reevaluating their strategies, leading Australian and New Zealand companies have reaffirmed their diversity priorities.

PwC Australia’s Chief People Officer Karen Lonergan stated, “Diversity and inclusion are fundamental to our values and business performance. Diverse perspectives drive better outcomes.” KPMG Australia echoed this sentiment, with a spokesperson confirming, “We remain committed to creating an environment where everyone can succeed.”

The ripple effects of Accenture’s decision are likely to influence ANZ’s corporate landscape, particularly in industries with strong ties to global markets. As companies balance evolving legal requirements with long-term inclusion strategies, the future of DEI in ANZ remains a critical issue for business leaders and policymakers.