Tractor Supply, a leading rural lifestyle retailer based in the United States, has announced significant changes to its environmental, social and governance (ESG) initiatives. The company is eliminating diversity, equity and inclusion (DEI) roles and support for the LGBTQ community as part of these changes. Tractor Supply had previously set goals to reduce carbon emissions by 50% by 2030 and reach net-zero emissions in the decade after that, but it will now prioritize land and water conservation initiatives instead.
The retailer, which caters to rural communities with over 50,000 employees across 2,250 stores in 49 states, had been recognized for its inclusive and diverse workplace. It was included on Newsweek's list of America's Greatest Workplaces for Diversity and Bloomberg's Gender Equality Index in previous years.
The announcement comes amid growing anti-DEI sentiment following a U.S. Supreme Court decision in 2023 that struck down affirmative action in colleges, which some experts predicted could have implications for corporate hiring or recruiting. Companies such as Starbucks, Disney and Target have faced legal challenges over DEI initiatives for LGBTQ customers and employees.
Tractor Supply's decision to eliminate DEI roles and support for the LGBTQ community was met with criticism from some quarters, but it also received backing from conservative activists who had been campaigning against the company. The retailer said it was making these changes to better represent the values of its customers and communities.
Some pages on Tractor Supply's website related to its carbon emissions reduction and DEI efforts now redirect to a photo of a Tractor Supply store. The Human Rights Campaign, an LGBTQ advocacy group, no longer has access to the company's data. Pride festivals and voting campaigns are also no longer being sponsored by Tractor Supply.
Tractor Supply is not the first company to face pressure from conservative activists over its ESG initiatives. In February 2023, pharmaceutical giant Pfizer dropped race-based eligibility requirements for a fellowship program designed for college students of Black, Latino and Native American descent following criticism from some quarters.
The retailer's market valuation is around $29 billion. CNBC contacted Tractor Supply for more details about the changes but did not receive a response beyond the statement.