- BlackRock removed DEI mentions from its annual report amid political pressure.
- The asset manager has faced criticism from Republicans for being too "woke."
- Here's how BlackRock has tried to distance itself from the themes it once championed.
Many big American companies have been quick to respond to President Donald Trump's pushback on DEI, but none of their steps carry more symbolic weight than a retreat by BlackRock, the world's largest asset manager.
An early advocate of diversity, equity, and inclusion, BlackRock has removed all mention of the strategy from its latest annual report. The asset manager and its CEO, Larry Fink, have over the years become targets for Republicans who claim the firm is too "woke."
What was the DEI section in the asset manager's last report has now been reframed as "connectivity and inclusivity" in the Tuesday filing. Last year, it said that it believed "a diverse workforce with an inclusive and connected culture is a commercial imperative and indispensable to its success."
This year it avoided mentioning the acronym or a diverse workforce, just "diverse perspectives."
When reached for comment, a BlackRock spokesman referred to the new paragraph in its annual report that said the firm's approach to "building a connected and inclusive culture is aligned with the firm's business priorities and long-term objectives. Delivering for the firm's clients requires attracting the best people from across the world.
"BlackRock is committed to creating an environment that supports top talent and fosters diverse perspectives to avoid groupthink."
BlackRock has also removed references to a three-pillar strategy, which included phrasing around cultivating a work environment where employees felt "seen, heard, valued, and respected."
The firm left out a section that previously broke down its US employees by gender and ethnicity. In its 2023 annual review, it introduced the statistics with a line saying that "BlackRock views transparency and measurement as critical to its strategy."
Companies have been quick to respond to President Donald Trump's executive order on "radical and wasteful" DEI programs, though a few big names such as JPMorgan Chase and Costco have reaffirmed their commitment to diversity initiatives.
Through his annual investor letters, Fink promoted stakeholder capitalism and environmental, social, and governance investing, becoming the unofficial corporate poster child for the movements. In the last few years, however, Fink has had to tone down his support for ESG and defend against the idea that the firm has an ideological agenda it's forcing on the many companies it invests in through its mutual funds and ETFs.
The firm also has critics on the political left. Climate activists have previously protested outside Fink's home and BlackRock's New York headquarters, calling for a divestment from fossil fuels.
"The only agenda we have is delivering for our clients," he said in 2023 LinkedIn post, which he drafted as a response to being called the "king of the woke industrial complex" in a Republican Party presidential candidate debate.
