BlackRock was once a trailblazer in ESG investing, but its recent decision to abandon so-called “woke” policies signals a major shift in corporate America. The movement toward liberal activism in the private sector appears to be losing steam, and BlackRock’s retreat is the most significant sign yet.
According to The Wall Street Journal, when BlackRock joined the U.N.-backed Net Zero Asset Managers (NZAM) initiative in March 2021, environmental groups celebrated the move. As the world’s largest investment firm, BlackRock’s endorsement gave instant credibility to the coalition’s mission of achieving net-zero greenhouse gas emissions by 2050. Other major financial institutions quickly followed suit.
At the time, CEO Larry Fink proudly stated, “BlackRock is proud to put its name behind this initiative.”
But nearly four years later, Fink is walking it all back. On January 9, BlackRock notified NZAM that it was pulling out, sending shockwaves through the coalition. Within days, NZAM was in turmoil, struggling to maintain support.
BlackRock’s decision to exit the climate coalition, along with its reversal on key diversity, equity, and inclusion (DEI) policies, marks a significant retreat from the ESG agenda.
The shift didn’t happen overnight. BlackRock has been gradually scaling back its ESG efforts as criticism from conservatives mounted, with many labeling the movement as a vehicle for leftist social engineering. At the same time, legal challenges against ESG practices have increased, making these policies a potential liability.
Now, BlackRock’s near-complete reversal sends a clear message—corporate America is reevaluating its commitment to ESG. Despite the backlash, the firm has continued to thrive financially, reporting record-breaking inflows last year.
The broader investment industry appears to be following suit. Without the endorsement of major asset managers like BlackRock, support for shareholder resolutions on climate change, human rights, and DEI initiatives has plummeted. In 2024, just 1.4% of 279 ESG-related proposals were approved—a dramatic decline from over 20% in 2021.
Other financial giants, including Vanguard, Fidelity Investments, and State Street, have also been singled out as among the “worst performers” in supporting ESG-driven proposals, highlighting the growing pushback.
The National Legal and Policy Center (NLPC) was one of the earliest voices pressuring BlackRock to abandon its ESG priorities. The firm’s retreat is yet another example of how corporate activism—when strategically applied—can force even the biggest financial institutions to change course.
