• BlackRock loses a €5 billion Dutch pension mandate as PME ends its relationship with the asset manager.
• The decision reflects growing European scrutiny of asset managers’ climate action and ESG stewardship.
• The move follows a similar withdrawal by Dutch healthcare pension fund PFZW earlier this year.

PME pulls €5bn mandate from BlackRock

BlackRock loses a second Dutch pension mandate in a matter of months after PME, a pension fund for workers in the metal and technology sectors, decided to terminate its relationship with the world’s largest asset manager. PME manages approximately €59 billion in retirement savings and will transfer a €5 billion equity mandate away from BlackRock following a months-long internal review.

PME said the decision was based on whether external managers align with the fund’s vision and principles, including sustainability and long-term risk management. While acknowledging that BlackRock had provided high-quality services for many years, the fund concluded that the asset manager no longer best aligned with its strategy.

Sustainability alignment at the core of the decision

PME said it aims to run a more concentrated equity portfolio to better understand its investments and improve the balance between risk, return, and sustainability. As part of this shift, the fund will reduce the number of external equity managers it uses from three to two, a move that will also slightly lower costs.

The pension fund has been reviewing its relationship with BlackRock since earlier this year, particularly after the asset manager exited a major net-zero investor coalition. PME representatives have previously warned that asset owners are becoming increasingly critical of managers that distance themselves from ESG commitments and climate stewardship.

Broader European divergence on sustainable investing

The decision underscores a widening divergence between Europe and the United States on sustainable investing. While large US asset managers have scaled back ESG-focused approaches amid political pressure and legal challenges from Republican-led states, some European asset owners are moving in the opposite direction, demanding stronger climate action and stewardship.

In September, Dutch healthcare workers’ pension fund PFZW withdrew approximately €14 billion from BlackRock as part of a broader overhaul of its investment strategy, citing a renewed focus on sustainability. BlackRock continues to manage some money-market funds for PFZW.

Scrutiny of BlackRock’s voting and stewardship record

Criticism of BlackRock has intensified following reports that the firm supported just 4% of ESG-related shareholder resolutions last year, down sharply from around 40% in 2021, according to research by responsible investment nonprofit ShareAction.

PME has said asset owners are in an early phase of a broader shift away from managers perceived to be retreating from ESG commitments. The fund emphasized that it expects partners not only to deliver financial performance but also to use their influence in line with sustainability convictions.

Asset reallocation and BlackRock’s response

PME said the €5 billion equity mandate will be transferred to UBS Group and Dutch investment manager MN, with a final allocation between the two firms to be decided in the coming months. JPMorgan Asset Management and Goldman Sachs Asset Management’s international arm will continue managing PME’s money-market funds.

BlackRock said it was grateful for the opportunity to serve PME and its members and noted that it continues to manage more than €350 billion for other Dutch clients. The firm has described itself as a global leader in sustainable and transition investing, offering climate-focused products tailored to European clients.

A growing signal to asset managers

BlackRock’s loss of the PME mandate follows mounting pressure from asset owners on both sides of the Atlantic. In the United States, outgoing New York City Comptroller Brad Lander recently recommended that the city’s pension funds drop BlackRock as a manager of more than $42 billion, citing insufficient attention to climate risk.

PME said its decision reflects a desire to ensure that future ESG risks and opportunities are adequately addressed in order to deliver strong returns while contributing to what it described as “a stable, livable, and just world” for its members.