Asset manager BlackRock (BLK), once a strong supporter of diversity, equity and inclusion (DEI) is now pulling back. The company quietly removed mentions of its DEI goals from its annual report filed on Tuesday. It also dropped specific diversity targets and stopped sharing detailed data on employee diversity. With a market capitalization of $147.6 billion, BLK stock is up 22% over the past year but down 7% year-to-date.
BlackRock Is Easing Diversity and ESG Targets
The shift comes as BlackRock faces rising political heat. Many Republican-led states have criticized the company for pushing social agendas through DEI and Environmental Social and Governance (ESG) policies.
In January 2025, BlackRock settled a lawsuit with Tennessee, agreeing to allow regular audits of its ESG practices. This move signaled a step back from its once bold DEI stance.
In addition, BlackRock is also softening its push for diverse corporate boards. In past years, it urged companies to aim for at least 30% diversity in race and gender. Now the company has eased this requirement in its 2025 proxy voting policies, marking a clear change in direction.
Wall Street Reevaluates DEI Initiatives
The move against DEI in the U.S. has grown since the election of President Trump. On his first day in office, he told federal agencies to end all “equity-related” grants or contracts and required federal contractors to certify they don’t promote DEI.
After this, big banks like Morgan Stanley (MS) and Citigroup (C) are cutting or easing their public talk on diversity equity and inclusion DEI, sources say. Meanwhile, Wells Fargo (WFC) and Bank of America (BAC) are also checking their DEI terms. These banks join other big firms like Ford, McDonald’s, Walmart, and tech giants like Meta and Google in scaling back such efforts.
Unlike others, JPMorgan Chase (JPM) CEO Jamie Dimon recently said the largest U.S. bank will maintain its DEI policies moving forward.
Is BLK a Good Stock to Buy?
Overall, Wall Street has a Strong Buy rating on the stock, based on 13 Buys, two Holds, and zero Sells. The average BLK price target of $1,179.54 implies about 23.12% upside potential from current levels.
