The Wall Street Journal: When BlackRock joined a U.N.-sponsored climate coalition in March 2021, sustainability groups were thrilled.

Having the world’s largest investment firm on board instantly lent credibility to the Net Zero Asset Managers, an initiative committed to support the goal of net-zero greenhouse gas emissions by 2050. Dozens of major investment managers followed BlackRock’s lead.

“BlackRock is proud to put its name behind this initiative,” Chief Executive Larry Fink said at the time.

Nearly four years later, Fink was distancing himself. NZAM got a phone call on Jan. 9: BlackRock was out. Within days, the coalition was teetering.

BlackRock’s departure from the coalition and its reversal this week on several diversity, equity and inclusion policies are the latest examples of the company’s retreat from advocating for issues related to environmental, social and corporate-governance factors.

It has been gradually walking back its ESG initiatives for years after conservatives criticized the movement as being “woke” and legal risks grew. BlackRock’s recent actions show the reversal is almost complete, though the fallout might not be. The company has been able to maintain strong results throughout the controversy, reporting record inflows last year.

Crucially, BlackRock has remained out of the crosshairs of President Trump, who has a personal relationship with Fink. Trump has publicly commended Fink for managing his money well in the past, and Fink and other BlackRock executives still have the Trump team’s ear on economic issues, according to people familiar with the matter.