Gap Flags DEI Scrutiny as New Risk Factor in Shareholder Report

The Gap, Inc. told investors on Tuesday that heightened scrutiny of corporate diversity, equity and inclusion initiatives posed a risk to its business.

In its 10-K annual report, the clothing giant pointed to mounting attention on DEI, adding that “negative perception of our diversity, equity, and inclusion initiatives, whether due to perceived over or under pursuit of such initiatives, may likewise result in criticism as well as potential litigation or other adverse impacts.”

The retail chain also joined dozens of companies in shifting how it refers to diversity in its annual report, using “inclusion and belonging” instead of “diversity, ...