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Dutch fund PFZW cuts ties with BlackRock over conflict on sustainability

PGGM, the lead asset manager for Dutch pension fund PFZW, said that BlackRock's stock funds were no longer being invested in by the Dutch pension fund. This was due to concerns about BlackRock's voting record in sustainability issues.

This move is part of a larger activist campaign in The Netherlands, which aims to get the large pension schemes of the country to fire managers who have shown a reduced level support for climate-change resolutions during company meetings.

While some companies have reduced the importance of sustainability following the reelection of U.S. president Donald Trump, the largest Dutch pension funds continue to believe that it is the best approach for the long term.

BlackRock, PFZW's spokesperson Ellen Habermehl, said that as of March 31, BlackRock had managed approximately 14.5 billion euro ($16.98billion) of the fund’s money market investments. However, this amount is now smaller and unspecified, she added.

A spokesperson for PGGM said that it was becoming harder to vote with American investment managers. However, PGGM still works with U.S. managers such as Acadian and MAN Numeric who manage a part of the PFZW's listed equity portfolio.

Sander Van Stijn, Director of Mandate Management for PGGM said in an NRC interview that PFZW had already decided how it would vote but wanted to make sure it was aligned with those who manage its money. "Or else things become very complex".

BlackRock stated that it would support 2% of shareholder proposals for environmental and social issues in 2025. This is down from 4% proposed in 2024. The reason given was because many were too prescriptive, or had no economic merit.

The Sierra Club Foundation, a U.S. asset manager, announced in June that it would sell assets worth $10.5 million because BlackRock did not press portfolio companies hard enough on climate change.

A spokesperson for BlackRock responded to the PFZW decision by saying: "BlackRock customers - including Dutch clients – continue to invest with BlackRock in order to achieve their sustainable investing goals. They have entrusted us to manage more than $1 trillion of sustainable and transition assets.

They added that clients could also choose how they vote on their shares.

As part of its strategic shift, PFZW (the Netherlands' second largest pension fund) said that it had stopped passively investing 50 billion euros on the stock market to enable it to buy-and-sell more easily.

It said that the move resulted in its selling out 2,600 companies, and it only selected 756 to invest.

Habermehl, PFZW, said: "For the next 5 years, we will strive to achieve a better balance of our need for good return, acceptable risk and sustainability."

(source: Reuters)