Dutch Pension Fund Withdraws €14.5 Billion Euros From BlackRock Over Green Credentials

One of Europe’s most influential pension funds has withdrawn a mandate valued at approximately €14.5 billion from BlackRock, citing growing concern over the US asset manager’s stance on sustainability and environmental issues. The decision by PFZW, which manages around €250 billion in assets, underscores an increasing divergence between European and American investors in environmental, social, and governance (ESG) priorities.

PFZW’s withdrawal reflects frustration among European pension schemes with US investment managers who are perceived to have softened their commitment to climate change and broader ESG initiatives. Since the re-election of President Trump, some American corporations have pivoted away from sustainability, fuelling anxieties within Europe’s institutional investment community about the alignment of their values and long-term goals with those of their asset managers across the Atlantic.

As of the end of March, BlackRock managed €14.5 billion for PFZW, but now holds a smaller, undisclosed portion confined to the fund’s money market investments. According to PGGM, the lead asset manager for PFZW, “It is getting harder to align with American investment managers on voting.” The Dutch fund continues to allocate capital to other US-based managers such as Acadian and MAN Numeric, which oversee part of its listed equity portfolio.

BlackRock reported that its support for shareholder environmental and social proposals dropped from 4 per cent in 2024 to 2 per cent in 2025. The firm argued that many such proposals were too prescriptive or lacked clear economic merit. This apparent cooling towards ESG activism has prompted both institutional and activist clients to reconsider their relationships. The Sierra Club Foundation, a leading environmental organisation in the US, publicised the movement of $10.5 million in assets due to dissatisfaction with BlackRock’s approach to climate-related stewardship.

Responding to PFZW’s shift, BlackRock emphasised that it continues to manage over $1 trillion in sustainable and transition-oriented assets for clients globally, including those in the Netherlands. The asset manager also noted that some clients can choose to vote on their own shares, allowing for a degree of autonomy in stewardship decisions.

PFZW, the Netherlands’ second-largest pension fund, has also ended its passive investment strategy for €50 billion in stock market assets. This transition has enabled greater agility in buying and selling, with the fund divesting from 2,600 companies and choosing to invest in only 756. PFZW stated, “For the next five years, we aim for a better balance between our need for good returns, acceptable risks and sustainability.”

The fund’s decisive action highlights shifting standards and growing resolve among European investors to pursue more ambitious sustainability objectives, even if it means severing ties with some of the world’s largest asset managers.