One of Europe’s largest pension funds parted ways with BlackRock, underscoring how capital is flowing toward managers who can demonstrate authentic ESG alignment and long-term value creation.
What happened?
Pensioenfonds Zorg & Welzijn (PFZW), one of Europe’s largest pension funds, has withdrawn €14bn from BlackRock citing concerns over ESG alignment and stewardship.
PFZW is reshaping its equity strategy to give equal weight to sustainability, performance and risk, reducing exposure from thousands of companies to a tighter, sustainability-aligned universe.
To implement this shift, the fund has appointed eight active managers to oversee approximately €52bn in listed equities, with a stronger focus on engagement and long-term value creation.
Why this matters (for managers)
PFZW is not an isolated case. The People’s Pension recently reallocated £28bn away from its manager for the same reasons, prioritising sustainability, stewardship and long-term value.
Investors are making it clear: when ESG integration and stewardship fall short, they will reallocate capital.
Funds that fail to engage and demonstrate ESG alignment are not just looking out of date, they are looking out of mandate.
Mandate risk is no longer hypothetical, it is a business reality that can trigger multi-billion outflows. In today’s market, the managers who win flows will be those who can evidence ESG alignment with transparent, reliable data.
UPDATE - 15 September 2025
Pensioenfonds Zorg & Welzijn (PFZW) has followed its 14bn withdrawal from BlackRock by awarding an 18bn mandate to Robeco.
Robeco secured:
• 11.7bn for its 3D Systematic Equity strategy, using a bottom-up approach that balances performance, risk and sustainability
• 3.7bn for its 3D Credit strategy, applying the same principles to a diversified credit portfolio
The message to asset managers is clear: when ESG alignment falls short, capital moves.
Mandate risk is no longer hypothetical - only those who can evidence ESG integration with transparent, reliable data will keep winning flows.
Stay ahead of mandate risk
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