Kojo Modeste, executive director of Pride Toronto, said two 'gold' and one 'silver' level sponsors – meaning they provide $150,000 and $100,000, respectively – have backed out. People celebrate at the annual Toronto Pride Parade on June 30, 2024.Laura Proctor/The Globe and Mail
Three major sponsors have pulled out of Toronto’s Pride festival amid a wave of retreat from diversity, equity and inclusion initiatives across corporate Canada and in the United States.
Kojo Modeste, executive director of Pride Toronto – the organization behind the annual event, which celebrates LGBTQ+ rights – told The Globe and Mail that three sponsors had dropped out, but he would not name the companies because he is in conversations to see if they will reconsider.
Auto maker Nissan Canada confirmed Friday it is withdrawing, but the other two sponsors have not been identified.
With Trump spurring sponsors to ditch Pride Toronto, Canadian companies should step up
“We are in an era where every dollar counts,” Mr. Modeste said. “The cost of doing the festival has increased drastically, and we have not seen an increase in sponsorship. So, losing sponsors has made it a lot harder for us to be able to deliver on all of our commitments for the festival.”
Mr. Modeste said two “gold” and one “silver” level sponsor – meaning they provide $150,000 and $100,000, respectively – have backed out. While no company told Pride its sponsorship withdrawal was a result of the current DEI backlash, he believes there is a connection.
“A lot of the companies have made public statements, either on their website or otherwise, around moving away from DEI initiatives,” he added.
Mr. Modeste said the first corporate sponsor pulled out in mid-January, and the most recent one about two weeks ago.
“Now is not the time for us to be going backwards. In fact, we should be being a little bit more progressive with the decisions.”
Nissan Canada spokesperson Didier Marsaud said in an e-mail the decision was based on changes to the company’s marketing priorities and budget evaluation for its new fiscal year, which starts April 1.
“Unfortunately, we will not be able to sponsor this year’s event in Toronto, a local decision solely due to a re-evaluation of all our marketing and media activations in a variety of activities to ensure we will efficiently support our new product launches and marketing campaigns coming in 2025,” he said.
He added that Nissan Canada remains committed to “promoting an inclusive culture for employees, consumers, dealers and other key stakeholders.”
Of the 14 companies listed as gold and silver sponsors on the Pride Toronto website, several have already confirmed to media that they will continue to fund the event. These include the Ontario Lottery and Gaming Corp., Tim Hortons Inc., Air Canada, Rogers Communications Inc. and Smirnoff.
The Globe contacted other companies that had not yet confirmed whether they will be sponsors this year. Law firm Fasken Martineau DuMoulin LLP said it is still participating.
However, Manulife Financial Corp., Bud Light (owned by Anheuser-Busch Inbev SA), The Abnormal Beauty Co., Kenvue Inc., Bubbly sparkling water, Adidas AG and Trojan condoms did not respond to The Globe’s requests for comment.
Canadian observers fear the U.S. backlash against DEI initiatives that followed President Donald Trump’s orders to axe such programming in federal agencies could be seeping across the border.
“Today we are seeing a backpedalling, related to fiscal realities as well as stockholders’ and clients’ waning interest in queer representation,” said Sean Waite, associate professor of sociology at the University of Western Ontario. “The queer community should take note of the companies which remain committed to Pride.”
In the U.S., Walmart Inc., Target Corp., PepsiCo Inc., Meta Platforms Inc. and Citigroup Inc. are among dozens of companies that are pulling back on diversity policies. Some Canadian companies, too, have rolled back these initiatives.
Shopify Inc. and law firm McCarthy Tétrault LLP are among the Canadian firms walking back DEI programs. Shopify shut down programs for Black and Indigenous entrepreneurs in January, and McCarthy Tétrault said last week it is pausing its hiring program for Black and Indigenous interns.
Alberta Senator Kristopher Wells, a vocal advocate of the LGBTQ+ community, said he is disappointed to see the corporate sponsors withdrawing their support from Pride Toronto.
“True allies don’t back down in the face of adversity, they double down their support,” Senator Wells said in an e-mail. “That’s what true leadership is all about. Not backing down in the face of hate.”
Lisa DelCol, president of Toronto Pflag, a charity that supports the families of LGBTQ+ individuals, said her organization has received more requests for support from parents in Canada and the U.S. in the past few months. She attributes this to policies enacted by Mr. Trump’s administration.
“We’re not immune here in Canada,” she said.