By Jack Pitcher

BlackRock cut references to its diversity, equity and inclusion strategy in its latest annual report, joining the list of Wall Street firms and corporate employers distancing themselves from DEI.

It is a particularly notable turnaround for BlackRock, where Chief Executive Larry Fink once embraced DEI and environmental, social and governance investing.

"Just as we ask of other companies, we have a long-term strategy aimed at improving diversity, equity and inclusion at BlackRock," Fink wrote in a 2021 letter to shareholders. "To truly drive change, we must embed DEI into everything we do."

In BlackRock's annual report filed Tuesday, the world's largest asset manager deleted statements it included in past reports about a diverse and inclusive workforce being "a commercial imperative and indispensable."

BlackRock removed references to its "three pillar DEI strategy." Gone also was a statement that "BlackRock views transparency and measurement as critical to its strategy," and a breakdown of its U.S. employees by gender and self-disclosed ethnicity.

The company added a new paragraph that avoids the controversial DEI acronym:

BlackRock'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.

A subtle footnote in the annual filing showed BlackRock backing away from DEI in another way. In 2021, the company struck a financing deal with a group of banks that linked the lending costs for a $4.4 billion credit facility to its ability to achieve certain goals, such as meeting targets for women in senior leadership and Black and Latino employees in its workforce.

BlackRock said the ESG-linked credit facility, a novel arrangement at the time, would enhance its accountability.

Those metrics will no longer be enforced, according to a person familiar with the matter. BlackRock disclosed Tuesday that it amended the credit facility to "update the sustainability-linked pricing mechanics to remove existing metrics."

Executives have fretted over DEI programs in recent weeks after President Trump's executive order last month directed federal departments and agencies to launch civil investigations into the programs at companies.

BlackRock has come under particular scrutiny for its public statements on hot-button political issues because its fund-management business makes it one of the largest shareholders in most major U.S. companies.

Last month, the asset manager withdrew from a United Nations-sponsored climate initiative, citing legal inquiries from various public officials.

Write to Jack Pitcher at jack.pitcher@wsj.com

(END) Dow Jones Newswires

February 25, 2025 19:31 ET (00:31 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.