Molson Coors slows down on DEI initiatives.

• Molson Coors plans to reduce supplier diversity quotas and DEI-based training programs and end its partnership with the Human Rights Campaign's Corporate Equality Index.
• The brewer made a decision after retailers over the summer paused their efforts to promote diversity, equity, and inclusion.
• The increase in corporate DEI practices in 2020 has been impacted by the Supreme Court's decision to overturn affirmative action in colleges.

A growing number of companies are reversing their diversity, equity, and inclusion policies, with the latest addition being the most recent.

Molson Coors executives announced in an internal memo on Wednesday that the company will eliminate supplier diversity quotas, stating that they can be "complicated and impacted by factors beyond [the company's] control."

The brewer has assured that its suppliers will remain diverse and representative of its consumer base.

Starting next year, our executive incentives will be linked to business performance and not include aspirational representation goals, as stated in the memo by company executives.

Molson Coors is currently working on the next phase of its company training programs, which will prioritize business objectives over diversity, equity, and inclusion (DEI) initiatives. All U.S. employees have already completed the previous DEI-focused training programs.

Molson Coors will change the name of its Employee Resource Groups to Business Resource Groups while still performing the same functions, and will stop participating in any voluntary "best of" third-party company rankings in the U.S., including the Human Rights Campaign's Corporate Equality Index, which evaluates companies on their equality measures for LGBTQ+ individuals. The company had previously received a perfect 100 score.

The company stated that the change will not affect the benefits provided to employees, nor will it alter or weaken their dedication to cultivating a robust workplace culture where all employees feel welcome at the bar.

The company will ensure that all corporate charitable giving programs are aligned with "core business goals," such as supporting alcohol responsibility, disaster relief efforts, and promoting access to higher education. Since 2011, Molson Coors has raised over $700,000 nationally for LGBTQ+-focused organizations through its "Tap Into Change" program and has sponsored pride festivals.

Molson Coors executives informed CNBC that their decision to make preemptive changes in response to a recent probe into their DEI practices was not prompted by conservative activist Robby Starbuck's demands, despite what he claimed. The decision has been in process since March.

After a summer retreat from their DEI initiatives, retailers have influenced Molson Coors' decision to reconsider its approach to diversity, equity, and inclusion.

The rural retailer started the trend by severing ties with the LGBTQ+ advocacy group Human Rights Campaign and retiring previous DEI targets. Companies like X and Y followed suit. Most recently, Z executives highlighted plans to slash supplier diversity quotas and cut the company's relationship with the HRC's metric.

The murder of George Floyd and the Black Lives Matter protests of 2020 sparked renewed interest in corporate DEI practices. However, the Supreme Court's decision to overturn affirmative action in colleges has caused struggles in the aftermath. Although the reversal of affirmative action does not affect corporate initiatives legally, companies are concerned that the growing anti-DEI sentiment will impact their operations.