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Molson Coors Beverage Co. says it’s dropping its diversity, equity and inclusion policies and taking a “broader view” in which all employees know they’re welcome, but groups representing the LGBTQ2S+ community say the move is a step backward.

An internal memo shared by the brewing company with the Canadian Press said Molson Coors’ DEI employee training is complete and beginning next year it will stop requiring that its hiring process fulfils specific “representation goals.” It also said it will no longer participate in the ranking program by the Human Rights Campaign, an advocacy group that scores companies on how inclusive their workplace practices are toward to the LGBTQ2S+ community.

“Moving forward, we will assess our work to build a strong company culture based on our own internal metrics, your feedback and our success in serving our customers,” said the memo.

Read: Ford, Lowes among employers pulling back from DEI policies

As well, the organization said it will no longer require its suppliers to meet diversity goals, as such metrics, “can be complicated and influenced by factors outside our control.” The memo also makes reference to social and political tensions, noting “in the polarized world in which we are living, let’s ensure that we stay united as a team.”

In an email, the HRC, which had previously given the Canadian-American multinational company a perfect rating, didn’t directly acknowledge the change at the brewery but noted that some business leaders are turning their backs on commitments to inclusion.

“Companies like Molson Coors, Ford and others that abandon their values and backtrack from commitments to DEI risk losing both top employee talent and consumer dollars,” said Orlando Gonzales, senior vice-president of research, training and programs at the HRC, in a statement on the group’s website.

The change in policy at Molson Coors comes amid backlash against companies seen to be supporting the LGBTQ2S+ community and DEI programs. In August, Jim Farley, Ford Motor Co.’s chief executive officer, sent a memo to all employees explaining its decision to stop taking part in external culture surveys and an annual survey by the HRC.

And in January, Chip Wilson, founder of Vancouver-based Lululemon Athletica Inc., criticized the company’s diversity efforts; while, in 2023, Anheuser-Busch Co. LLC’s brand Bud Light and Nike Inc. came under fire for partnering with and supporting transgender influencer Dylan Mulvaney.

Read: Concept of ‘MEI’ taking away from employers’ DEI efforts: expert

The change of policy at Molson Coors is a sign of lost progress for Olivia Baker, an instructor at Fondation Émergence, which advocates against homophobia and transphobia. Baker visits companies and organizations across Canada to help them implement best practices that support the LGBTQ2S+ community in the workplace.

Baker said she’s “disappointed but not surprised” and called the company’s move the latest example of “a rise in LGBTQ2S+ hate,” noting Molson Coors is dealing with a backlash against policies of inclusion, with much of the vitriol coming from the United States and taking root in Canada.

The HRC says companies that roll back DEI initiatives may end up losing profits. According to a survey it conducted in August, up to 80 per cent of LGBTQ2S+ adult respondents in Washington, D.C., said they’d support a boycott of a company backtracking on DEI policies.

Teamsters Canada, which represents 750 brewery, transportation and customer service workers at Molson Coors in Montreal, says the company is free to implement its own policies. “If we determine that the company is engaging in discriminatory practices, we will take swift action to rectify the situation,” the union said in a statement.

Read: 92% of LGBTQ2S+ workers consider company’s inclusion reputation when job searching: survey