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Dutch pension fund PFZW terminates partnership with BlackRock due to conflict over sustainability

The Dutch pension fund PFZW announced on Wednesday that it had ended its relationship BlackRock, a wealth manager. This was part of a revamping of its portfolio to prioritise sustainable investments.

The Netherlands' second largest pension fund selected 756 companies for investment and sold its stakes of over 2,600 companies in the last few months.

Ellen Habermehl, spokesperson for PFZW, said: "In the next five-year period, we will strive to achieve a balance between our desire for good returns and acceptable risks, as well as sustainability."

BlackRock was not selected.

BlackRock's Dutch Office did not respond immediately to a comment request.

Although many U.S. multinationals have moved away from sustainable business model since Donald Trump's re-election, some of the largest Dutch pension funds continue to believe that sustainability is the best approach for the long term.

In an interview with the Dutch newspaper NRC PGGM, the fund's Investment Manager said that its decision to terminate its relationship with BlackRock is due to its reluctance in supporting sustainability resolutions during shareholder meetings.

The fund does not want to have its votes in these meetings clash with the votes of the wealth management firms it works with.

Sander van Steijn, PGGM's investment expert and NRC commentator, said: "If you don't do it right things can get complicated."

PFZW's total assets are around 250 billion euro ($293 billion), with approximately 50 billion euros in investments in shares.

Last year, the country's largest pension funds ABP, with 544 billion euro in assets, announced that it would reduce investments with large climate impacts, and instead direct more money to projects and companies that improve society and environment.

(source: Reuters)