Dutch pension fund divests from BlackRock and L&G, prioritizing sustainability goals
In a significant move towards sustainable investing, the Dutch pension fund PFZW, the 11th largest in the world, has announced its decision to withdraw €15bn from fossil fuel-related investments, including €14.5bn from BlackRock and €1bn from Legal & General. This decision comes as a victory for the Dutch advocacy group Fossil Free Netherlands, which has been urging pension funds to withdraw from US asset firms due to their perceived resistance to climate change adaptation.
The move by PFZW marks a shift from being an index tracker to a more conscious investor. The fund will now rely on a diverse group of asset managers, including Robeco, Man Numeric, Acadian, Lazard, Schroders, M&G, UBS, and PGGM, to oversee an equity portfolio worth some €50bn. The aim is to build an investment portfolio that delivers market-level returns, operates within acceptable risk, and achieves a relatively high level of sustainability.
PFZW's decision follows a similar move by The People's Pension, one of the UK's largest pension funds, which pulled more than $25bn of investments from State Street over sustainability and ESG concerns in March. The financial and economic impacts of climate change and other ecological changes are clear, and some legal systems have recognized this reality, as mentioned by Zaneta Sedilekova, lawyer and director of sustainability consultancy Planet Law Lab.
Campaigners are calling on trustees to make sustainable investment decisions and use their voting power to push companies they invest in to go green. L&G, despite withdrawing from PFZW, remains committed to responsible investment. The company incorporates sustainability into its investment decisions and stewardship activities, as it continues its strong relationship with PGGM across various sustainable investment strategies.
However, not all asset managers are moving towards sustainable investing at the same pace. BlackRock left the Net Zero Asset Managers initiative in January, and many US banks also left the Net Zero Banking Alliance. PFZW and other institutional investors, according to Sedilekova, owe a fiduciary duty to people whose assets they manage, and this duty includes considering climate risks and the transition to a low-carbon economy.
As PFZW sets an example for other pension funds, Fossil Free Netherlands plans to turn its attention to other Dutch pension funds, such as the largest, ABP, to try to persuade them to follow suit. Pressure is mounting on pension funds to take more account of climate risks, and it remains to be seen how this trend will shape the future of sustainable investing.
This article was last updated on September 5, 2025.
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