Dutch pension fund PME has withdrawn a €5 billion equity mandate from BlackRock, marking the second major loss for the world’s largest asset manager in the Netherlands in recent months as European asset owners tighten expectations around climate alignment and stewardship.
PME, which manages approximately €59 billion on behalf of workers in the metal and technology sectors, said the decision follows a review of its equity portfolio and reflects a strategic shift toward a smaller number of asset managers whose investment approach better aligns with the fund’s climate beliefs. The move results in the effective divestment from BlackRock across PME’s equity holdings.
Climate Alignment Becomes a Mandate Test
The decision underscores how climate considerations are increasingly shaping mandate retention in Europe’s pension sector. PME said it aims to concentrate its equity portfolio to improve oversight and balance risk, return, and sustainability, without altering its overall investment objectives.
“As part of our strategy to invest for a good pension, we make deliberate choices about the companies included in our equity portfolio. We aim for a portfolio with a limited number of stocks, enabling us to better understand our investments and pursue an improved balance between risk, return, and sustainability,” the fund said.
PME added that reducing the number of asset managers is expected to generate a modest saving in management fees, while leaving risk and return expectations unchanged. Under the revised structure, the fund will expand its equity mandates with Dutch manager MN and Swiss firm UBS.
A Broader European Pattern
PME’s decision echoes a similar move by Dutch healthcare workers’ pension fund PFZW, which announced in September that it would withdraw approximately €14 billion from BlackRock as part of an overhaul of its investment strategy. PFZW, which manages €255 billion in assets, continues to use BlackRock for some money-market funds.
Together, the moves point to a growing willingness among European pension funds to reassess relationships with large U.S. asset managers where climate stewardship and voting practices are seen to diverge from stated investment principles.
PME currently allocates around 37 percent of its portfolio, or roughly €22 billion, to equities, with a further 52 percent invested in fixed income. The changes also come as Dutch defined benefit pension funds prepare for a transition into a new pension system in January 2027, effectively converting them into collective defined contribution schemes and sharpening focus on long-term risk management.
Pressure on Global Asset Managers
PME has faced sustained pressure from climate campaigners in the Netherlands to end its relationship with BlackRock. More than 2,000 Dutch pensioners signed a public letter organised by Fossielvrij Nederland urging divestment from large U.S. asset managers over climate concerns.
“PME has made a very wise decision in showing BlackRock the door,” said Hiske Arts, campaign lead at Fossielvrij Nederland. “The asset management giant has succumbed to Trump’s fossil fuel agenda: as a shareholder, it votes down climate resolutions and as an investor, it keeps the fossil fuel tap wide open.”
BlackRock has faced increasing scrutiny in Europe as it has distanced itself from public climate advocacy amid political and legal backlash in the United States. In January, the firm confirmed its exit from the Net Zero Asset Managers Initiative, which later suspended its activities.
According to research by Reclaim Finance, BlackRock has increased its investments in new bonds issued by fossil fuel producers by nearly $1 billion over the past year, even as it continues to invest in renewable infrastructure.
BlackRock Responds
A spokesperson for BlackRock said the firm continues to manage more than €350 billion for Dutch clients and remains committed to sustainable and transition investing.
“BlackRock has been entrusted by clients in the Netherlands and around the world to manage more sustainable and transition assets than any other asset manager,” the spokesperson said, adding that the firm’s EMEA business reported $129 billion in net new business through the first three quarters of the year, with nearly a quarter invested in sustainable funds.
The campaign group Fossielvrij Nederland said it is now turning its attention to ABP, the Netherlands’ largest pension fund and Europe’s biggest, which manages €520 billion in assets and continues to use BlackRock for some equity and emerging market debt mandates.
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