Double the Impact Without Double the Budget: Top shared challenges for DEI and ESG

Two of the most urgent agendas for business, Diversity, Equity, and Inclusion (DEI) and Environmental, Social, and Governance (ESG), are often tackled in parallel, but rarely in true alignment. That’s a missed opportunity.

While DEI and ESG are sometimes siloed into different parts of the organisation - DEI into HR, ESG into compliance or sustainability- they actually share many of the same pain points. From data gaps to leadership buy-in and change fatigue, the overlap is striking. But trying to solve these challenges separately often leads to duplication, inefficiencies, and diluted impact.

So what if we flipped the script? What if, instead of running two parallel strategies, we aligned them not just in messaging, but in design, delivery, and accountability?

This isn’t about forcing a fit. It’s about recognising the natural synergies between DEI and ESG and leveraging them to drive deeper, more sustainable outcomes without doubling the resources or the spend.

Take data, for instance. Access to consistent, high-quality data is one of the most persistent issues in both DEI and ESG. Organisations struggle to gather demographic insights, inclusion metrics, and employee sentiment in a way that’s meaningful and actionable. ESG faces similar hurdles when it comes to tracking environmental and social impact and governance practices across global operations.

Leadership is another critical piece of the puzzle. Both DEI and ESG initiatives often fall short when ownership and role modelling are lacking. When these efforts are treated as side projects, detached from core business goals or relegated to a single function they’re easy to deprioritise at high pressure times.

Embedding DEI and ESG into executive KPIs and board-level oversight ensures they’re modelled from the top down and reinforces their strategic importance. When leaders take visible, values-based action - whether that’s prioritising ethical governance, championing inclusive hiring, or backing sustainability investments - the rest of the organisation follows suit.

Silos are perhaps the biggest enemy of impact. As long as DEI sits within HR or talent and ESG within compliance, this isolation will limit their impact. True integration means moving from tick-box exercises to strategic levers for innovation, risk management, and long-term value creation. It means asking, how does our inclusion strategy reduce risk in our supply chain? How does our environmental strategy support equity in the communities where we operate?

Of course, culture plays a central role, too. There’s a growing recognition that external ESG messaging must reflect internal realities just as performative DEI statements ring hollow when not backed by real change. The risk of greenwashing or tokenism is real. But the solution isn’t better spin, it’s better alignment.

Why run two separate races when they lead to the same finish line?

Ultimately, the greatest challenge and opportunity lies in moving from short-termism to long-term thinking. Both DEI and ESG are about building a better future. Aligning them doesn’t just make sense strategically. It’s a smarter, more sustainable way to lead.