Bear with me, I'm going to have to go over a bit of background before I can get to my point.
"Institutional" stirred a memory, which I found in https://www.telegraph.co.uk/news/2023/07/19/coutts-nigel-farage-racism-sexism-banking-braverman/
The first couple of paragraphs:
Coutts bank is signed up to a corporate diversity scheme that pledges to tackle “racism, transphobia, classism, sexism, and xenophobia”.
The institution [Coutts] has come under fire after being accused of closing Nigel Farage's bank account over his views on Brexit, migration and the UK’s net zero policy.
It is a member of the B Corp Certification programme, which rates businesses worldwide based on their record in areas like equity, inclusion and the environment.
To me, this B Corp Certification programme sounds a lot like Stonewall's Workplace Equality Index, but on steroids.
Trying to find out more about this certification, the. term Environmental, Social, and Governance (ESG) ratings kept cropping up. Trying to find out about that, I came across
https://www.gov.uk/government/consultations/future-regulatory-regime-for-environmental-social-and-governance-esg-ratings-providers
which kicks off with "Environmental, Social, and Governance (ESG) ratings are assessments of ESG matters, which increasingly drive investment decisions in financial markets."
So - "drive investment decisions in financial markets." To me, that reads as 'if you don't score highly on DEI and ESG, your company will not be invested in'. Now, that could be big shareholders like hedge funds deciding not to buy your shares thus driving down the share price and reducing the value of the company, or maybe even banks you go to borrow funds from turning you down. And the bigger the company / institution, I'd presume the more likely they are to come under scrutiny for their DEI / ESG scores.
Or to put it another way, companies and institutions have a financial incentive to score highly on DEI / ESG. We're not necessarily just up against spineless managers and overweening HR departments, but solid hard cash and that company / institution surviving financially.