E-commerce giant Amazon, Inc. (NASDAQ: AMZN) said it is conducting a racial equity audit as part of its efforts to support and increase diversity in the workplace, a definitive proxy statement filed with the SEC as Form DEF 14A showed.

What Happened: Amazon said the focus of the racial equity audit would be to evaluate any “disparate racial impacts of its policies, programs and practices” on its nearly one million hourly employees. The audit team will be led by Loretta Lynch, a former U.S. Attorney General.

Attorneys at the law firm Paul Weiss, Rifkind, Wharton & Garrison LLP will be part of the team. The company said it will publicly disclose the results once the audit is completed.

The audit will not cover its Whole Foods subsidiary or delivery drivers hired through third-party contractor groups, the Financial Times reported, citing an Amazon spokesperson.

The proposed audit is in response to pressure from shareholders, who are opposing Amazon’s alleged practice of putting the lives of workers of color at risk at its warehouses, FT noted. The injury rates at Amazon warehouses are said to be above the industry average.

Related Link: Amazon Looks To Block ‘Union,’ ‘Living Wage,’ Or ‘Freedom’ Keywords On Internal Messaging App: Report

Ahead of Amazon’s annual shareholder meeting scheduled for May 25, the New York State Common Retirement Fund had sponsored a shareholder proposal to urge the company to conduct an internal audit that would work on breaking down safety data based on race, gender and ethnicity.

Amazon has asked its shareholders to reject the proposal by substantiating the efforts underway at the company to ensure racial diversity and equality.

Why It’s Important: Companies are increasingly facing pressure to ensure racial equality in the workplace, especially in the aftermath of the murder of George Floyd in 2020.

At Apple, Inc.’s (NASDAQ: APPL) annual shareholder meeting held in March, its shareholders overwhelmingly rejected Cupertino’s recommendations against a civil rights audit. The company was urged to conduct a third-party audit on its civil rights policies and practices.

Other high-profile companies such as Citigroup Inc. (NYSE: C) and Tyson Foods, Inc. (NYSE: TSN) have also begun audit reviews in this direction.

Amazon closed Monday’s session up 0.71% at $3,055.70.

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