State Street released its voting policy guidance,


removing specificity from its voting recommenda- tions on board diversity, and changing the language from “we believe” as opposed to “we will oppose/ support” to align with global protocols following similar changes by BlackRock and Vanguard. Glass Lewis also announced that it would retain


its voting policy of recommending against directors at firms without sufficient diversity on boards, but modify its language in its reports from an “against” recommendation related to diversity to a “for your attention” flag.


BlackRock: A Case Study of Strategic Repositioning BlackRock, the world’s largest asset manager, pro- vides a pivotal example of how companies are navigating the anti-DEI landscape. Once a vocal proponent of DEI initiatives, the firm’s reversal on several DEI policies has drawn widespread atten- tion given its influence over corporate governance practices globally. Key developments in BlackRock’s evolving ap-


proach include: • The elimination of aspirational workforce representation goals from its corporate policies.


• Te merging of DEI and talent management teams into a broader “Talent and Culture” function.


• Te removal of DEI-related commitments from its annual report.


• A halt in the launch of ESG-focused exchange- traded funds (ETFs) in the United States after a rapid expansion in prior years. BlackRock’s repositioning underscores a broader


recalibration happening across institutional inves- tors. While firms remain committed to governance and sustainability principles, they are increasingly distancing themselves from explicit DEI language, focusing instead on risk management and business- driven inclusion efforts. As the anti-DEI movement unfolds, there has


been a noticeable outflow of funds from environ- mental, social and governance (ESG) investments in the United States, which has been partly attributed to the backlash against DEI initiatives. Tis trend has created a more challenging environment for ESG


2 8 S P R I NG 20 2 5 ■ IR UPDAT E


funds, as investors reassess their portfolios in light of the changing political and regulatory landscape. Te rollback of DEI initiatives has raised concerns


about potential increases in ESG risks for companies. Even when they have a relatively low weight in terms of ESG risk ratings, they bring broader implications, such as societal impacts and potential weakening of other ESG commitments. Te increased hostility towards DEI and ESG programs has led to more regulatory scrutiny, and companies are facing more legal challenges and compliance requirements. For IROs, this shift highlights the need to assess


investor sentiment carefully. With BlackRock and other major asset managers setting new precedents. Public companies must anticipate how these trends may impact shareholder expectations, proxy voting behavior, and governance strategies.


Implications for Investor Relations(IR) Professionals As leaders of a company’s communication with investors, IR professionals must navigate a com- plex landscape of shifting investor expectations and regulatory environments. Here’s how they can strategically respond: • Conduct a Comprehensive DEI Audit. Stay informed about the latest DEI trends and their implications for the investment community. Evaluate your company’s current DEI initiatives and assess their alignment with legal requirements and stakeholder expectations. Identify areas where adjustments are needed to mitigate risks and enhance effectiveness and monitor regulatory changes, public sentiment, and industry best practices to provide accurate and timely insights to stakeholders.


• Understand Investor Sentiment. Engage with your investor base to gauge their perspectives on DEI issues. Regularly solicit feedback using surveys, focus groups, and one-on-one meetings to understand their concerns and priorities. By understanding investor sentiment, you can tailor communication strategies to address investor priorities and mitigate potential backlash.


• Align and Refine DEI Messaging with Business Objectives. Refine company messaging to address


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