In a major move that underscores the growing role of sustainability in long-term pension investing, international asset manager Robeco has been awarded investment mandates totaling €15.4 billion (approximately USD 18.1 billion) by Dutch pension investor PGGM, acting on behalf of Pensioenfonds Zorg en Welzijn (PFZW), one of the largest pension funds in the Netherlands. The shift follows PFZW’s decision to transition from a largely passive investment strategy to one rooted in active management and sustainability integration.

The mandates are part of PFZW’s broader Investment Policy 2030, a framework designed to steer capital towards companies and projects that offer financial resilience while actively contributing to social and environmental progress.

The Vision Behind PFZW’s 2030 Strategy

At the heart of PFZW’s 2030 strategy lies a triple focus on return, risk, and sustainability. The fund’s new approach introduces minimum sustainability thresholds across its portfolios, placing an emphasis on investments that support the United Nations Sustainable Development Goals and align with the Paris Agreement on climate action.

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The strategy outlines three thematic priorities: climate, people and health, and nature and biodiversity. By setting measurable standards in each area, PFZW aims to reduce its exposure to companies that cause harm while scaling investments into those that offer clear societal benefits.

A Departure from Previous Managers Signals Strategic Realignment

The announcement of Robeco’s selection follows PFZW’s decision not to renew its €14 billion mandate with BlackRock. Media reports indicated that the fund had concerns over BlackRock’s proxy voting track record on key sustainability issues. Similarly, Legal & General Investment Management (LGIM) also lost a €15 billion mandate due to its emphasis on passive investing, which PFZW is now pivoting away from.

These developments signal a significant reallocation of assets among some of the largest institutional mandates in Europe and reflect PFZW’s intent to work with partners whose philosophies align more closely with its evolving mission.

Co-Designing Next-Generation Investment Solutions

The mandates awarded to Robeco cover two core strategies. The first, valued at €11.7 billion, is the 3D Systematic Equity Robeco strategy. This strategy uses a bottom-up stock selection process to identify companies that offer the right balance of financial performance, risk control, and sustainability alignment.

The second mandate, worth €3.7 billion, is for the 3D Credit Robeco strategy. This credit portfolio is also actively managed using a bottom-up methodology, ensuring that sustainability metrics are considered equally alongside financial factors.

Both strategies were co-developed with PGGM, reinforcing a collaborative model of pension asset management that prioritizes long-term impact alongside returns.

Robeco’s ESG Capabilities Were Key to Winning the Mandate

In a statement, Robeco credited its proprietary sustainable investing frameworks for helping secure the mandate. Tools such as the SDG Framework, which evaluates corporate alignment with specific sustainable development goals, and the Climate Traffic Light, which measures consistency with the Paris Agreement, were central to defining the investable universe.

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The firm also pointed to its emphasis on corporate engagement as a critical component of its sustainability process. By actively working with companies to improve their environmental, social, and governance performance, Robeco aims to increase the quality of holdings within its portfolios over time.

Growing Appetite for Holistic ESG Strategies

Carola van Lamoen, Head of Sustainable Investing at Robeco, emphasised the alignment between Robeco, PGGM, and PFZW in her remarks. She stated that these mandates reflect a shared belief in balancing risk, return, and sustainability, and noted that active engagement and proprietary ESG research would be central to driving long-term value.

She also highlighted a growing interest from institutional investors in strategies that offer both financial resilience and tangible positive impact. As regulatory pressures, stakeholder expectations, and climate risks mount, more funds are looking to partner with asset managers who can deliver innovation and integrity in sustainable finance.

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