How Has Investing in DEI and ESG Changed Under Trump?

Jun 18, 2025

Rachel Robasciotti, Founder and Co-CEO of Adasina Social Capital, dives into the evolving landscape of socially conscious investing. Discussing how investments in diversity, equity, and inclusion (DEI) can influence corporate governance, she highlights the financial benefits of aligning portfolios with social justice metrics. Robasciotti critiques corporate responses to political pressures, revealing the importance of transparency and authenticity in DEI practices. Tune in for her insights on the balance between investor goals and genuine commitment to social principles.

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INSIGHT

Data-Driven Social Justice Investing

Adasina Social Capital evaluates nearly 10,000 global companies and invests only in those aligned with social justice across racial, gender, economic, and climate areas.
This ensures their portfolios reflect genuine social impact rather than relying solely on corporate self-reporting like conventional ESG investing.

INSIGHT

DEI Cutbacks Hurt Business

Companies cutting DEI are facing severe consequences like boycotts and hiring challenges.
Many are quietly reinstating DEI due to its clear impact on the bottom line, not politics.

INSIGHT

Authenticity Drives Investment Growth

Impact investing overall has slowed, but Adasina's fund is growing with over $10M net inflows in Q1.
Authentic commitment to DEI and ESG is separating genuine funds from superficial marketing efforts.

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With companies like Target blaming DEI backlash for lower sales while competitors like Costco are seeing boosts in foot traffic, how can a company’s DEI commitments affect investors with a socially conscious approach to investing?

In this special bonus episode of WSJ’s Take On the Week, guest host Miriam Gottfried is joined by Rachel Robasciotti, founder and Co-CEO of investment firm Adasina Social Capital. Adasina runs an exchange-traded fund dedicated to it called “social justice investing” that holds Nvidia, Visa, Mastercard and Eli Lily, among many other companies. Robasciotti says the companies in the fund must check the box on more than 80 metrics the firm has assembled related to racial, gender, economic and climate justice.

Robasciotti shares her views on the financial advantages of social conscious investing and how Adasina measures a company’s social impact to provide investors’ portfolios with more transparency. Plus, she shares the importance of DEI principles in light of the Trump administration's policy changes to DEI.

This is WSJ’s Take On the Week where co-hosts Gunjan Banerji, lead writer for Live Markets, and Telis Demos, Heard on the Street’s banking and money columnist, cut through the noise and dive into markets, the economy and finance—the big trades, key players and business news ahead.

Have an idea for a future guest or episode? How can we better help you take on the week? We’d love to hear from you. Email the show at takeontheweek@wsj.com.

To watch the video version of this episode, visit our WSJ Podcasts YouTube channel or the video page of WSJ.com.