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2026: The year of the rollback
What began as a shift in political tone has become a wave of corporate reversals. As firms abandon high-profile commitments, markets are starting to question not just strategy – but integrity
 
Corporate Governance | Featured | Strategy
Author: Hannah Duncan, Features Writer
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When corporations announce policies, all stakeholders – from consumers to employees to shareholders – expect them to be upheld. But a dramatic reversal is taking place. If 2020 was the time for grand social and environmental pledges, 2026 is the year of the rollback. Target, Walmart, Meta, Amazon, McDonald’s, Warner Bros and Goldman Sachs are among the one in eight companies that have so far weakened diversity, equity and inclusion (DEI) policies. Meanwhile almost one in five (18 percent) completely or partially discarded their net-zero promises.
The policy U-turns first emerged when Trump re-entered the White House and started revoking guidelines himself. By 2025, the fires were roaring. In a striking moment, the Net-Zero Banking Alliance collapsed after Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, Morgan Stanley and Goldman Sachs all withdrew. Today, politically motivated corporate rollbacks continue to compound at pace. The sudden drop in commitment reflects the aggressive ‘anti-woke’ philosophy of the Trump administration. For investors, it opens a Pandora’s box of new risks.
Boycotts spiral into falling valuations
One of the companies that has become synonymous with rollbacks, capitulating to Trump and the MAGA movement, is mega-retailer, Target. In November 2024, the brand bowed to pressure to remove Pride merchandising, leading to boycotts and a 20 percent drop in share prices. Just a few months later, Target went on to U-turn on its DEI initiatives, notably to end its Racial Equity Action and Change (REACH) strategy and abandon a $2bn pledge to support Black businesses.
This sparked one of the most devastating boycotts in US corporate history, with footfall dropping by nine percent and share prices losing 33 percent of value year-on-year. CEO Brian Cornell was forced to step down and shareholders have filed class-action lawsuits. Target is alleged in the courts to have engaged in the “misuse of investor funds to serve political and social goals.”
With boycott risk comes increased litigation risk. A survey by Norton Rose found twice as many companies were impacted by ESG-related (environmental social governance) class actions in 2025 (30 percent) compared to 2024 (16 percent). Political pressure is listed as a top trend contributing to the increased risk exposure. For shareholders, it is worrying.
