• BlackRock (BLK) loses a €5.9 billion asset-management mandate from Dutch industry pension fund PME, citing climate and sustainability misalignment.
  • The move follows PFZW's earlier withdrawal of a €14.5 billion mandate, part of a broader shift by European pension funds toward sustainability-focused strategies.
  • The decision reflects a growing transatlantic rift in sustainable investing approaches, with European asset owners tightening climate expectations.

Dutch industrial workers’ pension fund PME, with approximately €60 billion in assets under management, has terminated a roughly €5.9 billion mandate with BlackRock, according to people familiar with the matter. The fund had been reviewing its relationship with the world’s largest asset manager throughout 2024-2025, explicitly questioning whether BlackRock’s stewardship and climate policies aligned with its responsible-investment goals.

This development comes just months after PFZW, the second-largest Dutch pension fund, pulled a €14.5 billion mandate from BlackRock in September 2025. Both funds are implementing strategies where financial performance, risk, and sustainability are weighed equally, leading to a dramatic narrowing of their equity portfolios. PFZW, for instance, has reduced its listed equity holdings from about 2,500-3,500 companies to roughly 800 names, focusing on more concentrated, actively managed positions with stronger climate alignment.

“What institutional investors like us are really focused on is regulatory stability and clear climate pathways,” said a PME representative who requested anonymity because the decision wasn’t yet public. “We need managers whose stewardship actively supports the low-carbon transition in line with our members’ long-term interests.”

BlackRock, which manages over $10 trillion globally, has faced mounting pressure from both sides of the Atlantic. In the United States, political attacks on ESG have prompted the firm to soften some climate commitments and exit certain net-zero alliances. Meanwhile, European clients and NGOs have criticized what they see as backtracking on ambitious climate action. Fossil Free Netherlands’ “Break with BlackRock” campaign, which mobilized thousands of savers to contact their pension funds, claimed credit for the decision, pointing to BlackRock’s support for only about 4% of ESG-related shareholder resolutions in 2023, down from roughly 40% in 2021.

Without a renewed mandate, BlackRock’s footprint in the Dutch institutional market continues to shrink, though the financial impact remains limited relative to its total assets—likely a low-single-digit basis-points effect. The firm has responded by emphasizing tools like its “Voting Choice” program, which allows large clients to cast proxy votes according to their own policies, and separate Climate & Decarbonization Stewardship Guidelines. “We’re proud of our long-term performance for Dutch clients and continue to manage money-market funds and other products for them,” a BlackRock spokesperson said, noting that the firm offers flexibility for clients to implement their sustainability preferences.

As Dutch funds re-tender portfolios under Investment Policy 2030-style frameworks, competitors like Robeco, Schroders (SHNWF), UBS (UBS), and PGGM-run mandates are gaining ground. The shift underscores a broader trend: European pension funds are increasingly favoring managers with stronger climate-policy alignment and more active ownership, particularly in listed equities and credit. This reallocation, while material within the Dutch market, highlights a deepening divergence between U.S. and European approaches to sustainable investing, with European asset owners potentially leaning toward non-U.S. managers for climate-sensitive mandates in the future.

Efforts to reach PME for additional comment were unsuccessful by press time. The fund is expected to reallocate the assets to managers it considers better aligned with its sustainability and stewardship goals, mirroring PFZW’s earlier move.