Since its inception in July 2021, the University Pension Plan has continually integrated diversity, equity and inclusion into its investment approach.

“[That integration is most evident] in how we evaluate managers and monitor their processes,” says Delaney Greig, its senior director of investor stewardship. “We put equity first because it’s about more than just representation; it’s about the broader conditions that enable fair opportunity, decent work and inclusion in decision-making.”

In recent years, the conversation around DEI has become increasingly heated between its proponents and opponents, shaped in no small part by a shifting political landscape. But despite criticisms of DEI, many institutional investors are staying the course on diversity and inclusion, citing its impact on positive investment returns.

The Caisse de dépôt et placement du Québec’s latest sustainable investing report showed the organization made gains on several social and governance aspects in the past year.

Read: 2025 Top 40 Money Managers Report: How institutional investors are grappling with the DEI backlash

Roughly half (48 per cent) of its employees and 43 per cent of its board of directors are women, while 28 per cent of its Canadian employees identified as a member of a visible or ethnic minority or as Indigenous. Notably, three-quarters (76 per cent) of its actively managed public companies had at least 30 per cent women on their boards of directors, an increase of 85 percentage points since 2020.

Bertrand Millot, the Caisse’s head of sustainability, says the organization believes having a diversity of people and perspectives around the table fosters innovation, growth and allows for better risk management.

It’s for this reason, he notes, that the Caisse may vote against the appointment of board members if a public company has fewer than 30 per cent women on its board. As of 2025, it also reserves this right if a company doesn’t have at least one member from an underrepresented group, such as persons with disabilities, ethnic and visible minorities, Indigenous peoples and members of the LGBTQ2S community.

“We follow guidelines to orient our positions but remain pragmatic and flexible in the ways in which we apply these principles and criteria in order to take into account the market and the specific business environment in which a company operates.”

Read: AIMCo cuts 19 employees, including DEI program lead

However, other Canadian institutional investors have taken a different stance. In January 2025, following a massive shakeup at the board and executive level, the Alberta Investment Management Corp. cut several additional roles, including the head of its DEI program. The AIMCo didn’t respond to Benefits Canada’s requests for an interview.

While criticism of DEI concepts within some corners of political discourse isn’t a new phenomenon, it picked up steam during the early days of U.S. President Donald Trump’s second term.

Upon returning to the White House, one of his first acts was the signing of an executive order terminating DEI offices and positions at federal agencies. In the period leading up to and following President Trump’s second inauguration, many large U.S. employers — such as Ford Motor Co., McDonald’s Corp. and Walmart Inc. — pulled back from their previous DEI commitments. However, shareholders at companies such as........

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