More than 15 years ago, in 2006, the Diversity Charter was launched. Today, more than 4,000 employers have signed it, declaring that they will create or promote equal opportunities for their employees. Despite this impressive number and many other initiatives, the topics of Diversity, Equity, and Inclusion (DEI) are more relevant than ever. 

Global grassroots movements such as MeToo or Black Lives Matter, the public outcry over discriminatory legislation against non-heterosexual people in Hungary and Poland, as well as debates about gender pay gaps or the integration of migrants, have been a constant reminder of inequalities in society. Yet, within companies, the road to a truly diverse workplace still seems longer than the multitude of corporate programs on company websites might suggest. The German Diversity Monitor even warned of stagnation in corporate diversity performance, which was further exacerbated by the pandemic. 

The term "pink washing" describes when companies run public DEI campaigns, host diversity weeks, and wave rainbow flags, but make only limited progress in building the necessary structures and incentive systems to measurably improve actual DEI performance. 

Given public interest, increasing regulatory pressure, and the growing importance of ESG criteria in capital markets, numerous DEI benchmarks (rankings, ratings, and awards) have been established. They aim to look behind corporate PR and measure companies' DEI performance using facts and figures. 

As expected, the landscape of DEI benchmarks is broad, shaped by various approaches and underlying business models. As in other fields, three major groups can be identified: 

1. Benchmarks that aim to expose poor performance and drive improvements through public criticism, e.g., the German Diversity Index by BeyondGenderAgenda or the Women-on-Board Index by FidAR. 

1. Benchmarks that focus on collecting and selling data, e.g., to investors, allowing them to cover one of many risk categories, such as Refinitiv's Top 100 Most Diverse and Inclusive Companies or Bloomberg's Gender Equality Index. 

1. Benchmarks that seek to sell seals of approval to as many companies as possible across industries, to be used as quality labels on corporate websites, e.g., Top Employers Diversity by Stern/Statista. 

In addition, there are certificates, audits, awards, and various hybrid forms. 

Companies should know the relevant benchmarks, check whether they are already being evaluated, and assess in which they want to participate actively. Participation in credible DEI benchmarks can offer many benefits: 

1. They provide an excellent way to understand how good DEI performance is defined by different stakeholders and which indicators are used to measure it. 

1. They allow companies to benchmark themselves against peers and learn what best practices look like. 

1. They help advance the internal agenda by making performance gaps objectively visible. 

1. They build credibility in employer branding and recruitment campaigns. 

1. They are important to demonstrate a sustainable corporate culture to ESG investors. 

1. They prepare companies for stricter legal requirements and transparency regulations. 

Which DEI benchmarks are most relevant depends on the specific circumstances of the company. Expectations and regulatory frameworks also differ from country to country. 

For example, disability, including intellectual disabilities (such as autism), is a major and growing issue in both Europe and the United States. In Europe, regulation is pushing it forward, but data protection laws limit the collection of information on disabilities within companies. Another example is generational diversity, which is gaining importance in Europe and the U.S., where many generations often work together in the same company—an issue far less relevant in most of Asia. 

These and other local differences are reflected in the respective DEI benchmarks. Comparing the most visible benchmarks in Germany and the U.S. reveals significant differences. As expected, the number of benchmarks and the breadth of issues addressed are much greater in the U.S. However, thematic priorities also differ: in Germany, most benchmarks focus on gender equality and sexual orientation. In the U.S., ethnic background, family-friendliness, and the integration of veterans are additional important areas of assessment. This should not be surprising, given the size and role of the U.S. military or the absence of paid maternity leave. 

Companies need to be aware of these local differences and take them into account when evaluating DEI benchmarks. 

As a first step, we recommend identifying the relevant benchmarks in the areas that matter most to the company, depending on its specific workforce, location, and other relevant factors such as hiring needs or customer requirements. 

In a second step, the benchmarks must be analyzed and prioritized. Possible criteria include: 

• the thematic focus of the benchmark, 

• the credibility and transparency of its methodology, 

• its visibility and relevance to key stakeholders or recruiting target groups, 

• the value of insights for further developing the DEI strategy, 

• and the costs and resources required for participation. 

Once the key benchmarks have been identified, we recommend creating an action plan. It is also advisable to develop factsheets that summarize key information about each benchmark, highlight the strengths and weaknesses of the company, and outline resulting measures. 

As long as inequalities remain tangible and measurable in both society and companies, DEI benchmarks will remain visible and relevant. Systematic engagement and management of the relevant lists will therefore continue to be an ongoing challenge that companies must address.