PME Pensioenfonds, a major Dutch pension fund serving the metal and technology sectors, has decided to terminate BlackRock’s mandate to manage part of its equity portfolio following an internal review of external asset managers through a sustainability lens. The decision will see approximately €5 billion, equivalent to around $5.9 billion, reallocated away from the world’s largest asset manager. The move adds to a growing pattern of ESG-driven reassessments by European pension funds and deepens the divergence between sustainability expectations in Europe and political pressure facing asset managers elsewhere.

PME manages roughly €59 billion on behalf of current and retired workers in the Netherlands’ industrial and technology sectors. In 2022, the fund introduced a formal ESG framework that underpins what it calls its “Portfolio of Tomorrow,” an equity strategy designed to combine long-term financial performance with support for a livable world. As part of the ongoing implementation of that framework, PME reviewed the alignment of its external asset managers with its sustainability objectives. While acknowledging that BlackRock had delivered strong service over many years, the pension fund concluded that the firm was no longer the best fit for the direction its equity portfolio is taking. PME stated that the decision reflects a broader effort to ensure that external managers are fully aligned with the principles guiding its future-oriented investment approach. Other managers overseeing PME’s equity assets include MN and UBS Global Asset Management.

The decision follows another high-profile move earlier this year, when Dutch healthcare pension fund PFZW withdrew approximately €14 billion from BlackRock as part of a shift toward a more sustainability-driven investment policy. Together, the two mandate losses represent a significant signal from Dutch pension funds about rising expectations around ESG integration. While BlackRock continues to manage substantial assets across Europe, the loss of two large Dutch mandates highlights the pressure global asset managers face as European asset owners increasingly demand stronger and more explicit sustainability alignment.

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The developments underscore widening differences in how ESG considerations are treated across regions. In Europe, pension funds and institutional investors are often required by regulation, fiduciary interpretation, or beneficiary expectations to actively integrate sustainability into investment decisions. At the same time, political pressure in parts of the United States has pushed in the opposite direction. Several Republican-led states have taken steps to penalize or exclude asset managers perceived as overly focused on ESG, while federal-level debates continue over the role of sustainability factors in fiduciary duty. BlackRock has found itself navigating both sides of this divide. In the United States, the firm has faced criticism and legislative action from anti-ESG politicians. In Europe, some asset owners argue that its positioning does not go far enough to meet increasingly ambitious sustainability expectations. Tensions have also emerged within the US itself. New York City’s Comptroller recently called for the city to reconsider BlackRock’s $42 billion mandate over concerns related to climate risk management, illustrating how ESG scrutiny is coming from multiple directions.

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In response to PME’s decision, a BlackRock spokesperson emphasized the firm’s scale and ongoing commitment to sustainable and transition-focused investing. The company noted that it manages more sustainable and transition assets globally than any other asset manager and continues to be entrusted by clients pursuing net zero and long-term resilience objectives. BlackRock said it manages more than €350 billion for Dutch clients overall and remains proud of its presence and growth in the country. The firm also expressed appreciation for the opportunity to have served PME and its members for more than a decade. Despite recent mandate losses, BlackRock reported strong business momentum in the region. Through the third quarter, its EMEA business recorded approximately $129 billion in net new inflows, including around $30 billion directed to sustainable investment strategies.

PME’s move reinforces a broader shift among European pension funds toward more selective manager oversight based on sustainability alignment rather than solely on performance or scale. For global asset managers, the message is increasingly clear. ESG positioning must be credible, consistent, and aligned with client-specific frameworks rather than generalized messaging. As sustainability expectations continue to fragment across markets, asset managers face a more complex operating environment. Those unable to adapt to region-specific demands risk losing mandates in markets where ESG integration is becoming a defining factor in long-term capital allocation decisions.

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