Full Breakdown
Dutch Pension Fund PME Ends Relationship with BlackRock Over ESG Concerns
12/16/2025, 8:09:02 PM
PME's Decision to Withdraw Assets
PME, a Dutch pension fund managing approximately €59 billion ($70 billion) for employees in the metals and technology sector, has terminated its relationship with BlackRock Inc., the world's largest asset manager. This decision involves the withdrawal of a €5 billion ($5.9 billion) equity mandate, which will now be managed by UBS Group AG and MN, an investment manager based in The Hague. PME's move follows a comprehensive review of its external asset managers, emphasizing a commitment to sustainability and alignment with its investment principles.
Background on PME's ESG Framework
In 2022, PME launched its ESG framework, which focuses on environmental, social, and governance factors to guide investment decisions. This framework aims to construct a "Portfolio of Tomorrow," where companies are selected based on their potential for solid returns and their contributions to a sustainable future. PME's chair, Alae Laghrich, stated that the fund seeks asset managers who can meet its dual objectives of strong financial performance and sustainable investment policies. The decision to sever ties with BlackRock reflects PME's assessment that the firm no longer aligns with these goals.
Criticism of BlackRock's ESG Commitment
PME's withdrawal from BlackRock is part of a broader trend among European pension funds reassessing their relationships with U.S. asset managers over concerns regarding their commitment to ESG issues. BlackRock has faced criticism for its perceived lack of action on climate-related matters, particularly after it withdrew from a key net-zero coalition earlier this year. Daan Spaargaren, PME’s senior strategist for responsible investing, emphasized the need for asset managers to adopt a clear commitment to sustainability, stating, “Full alignment with our ambitions is not always possible.”
Official Statements & Responses
In response to PME's decision, a BlackRock spokesperson expressed gratitude for the decade-long partnership and highlighted that the firm continues to manage over €350 billion for other Dutch clients. BlackRock maintains that it is a leader in sustainable investing, asserting that it manages more sustainable assets than any other asset manager globally. The firm has also faced scrutiny from various stakeholders, including outgoing New York City Comptroller Brad Lander, who recommended that city pension funds drop BlackRock due to inadequate climate plans.
Conflicting Reports & Gaps
While PME's decision is significant, it follows a similar move by another Dutch pension fund, PFZW, which withdrew €14.5 billion from BlackRock earlier this year. This raises questions about the broader implications for BlackRock's standing among European pension funds and its ability to meet the evolving demands for sustainable investment practices.
What's Next for PME and BlackRock
PME plans to continue evaluating its external asset managers to ensure alignment with its sustainability goals. Meanwhile, BlackRock is likely to face ongoing scrutiny as it navigates the complex landscape of ESG investing, balancing the demands of various stakeholders while maintaining its market position.
