Pension fund in Europe terminates partnership with BlackRock due to their climate-related financial commitments

Pension advocates anticipate the decision may spur U.S. pension funds to investigate their links to the worldwide asset managing company.

, and Administrator

2025 September 15 . 8:30 AM

2 min read

Investment firm BlackRock faces expulsion from a European pension fund due to concerns about... — Investment firm BlackRock faces expulsion from a European pension fund due to concerns about climate-related investments.

The Netherlands' second-largest pension fund, PFZW, has announced the termination of its partnership with asset manager BlackRock, worth approximately $17 billion, primarily in stock funds. The decision by PFZW, which is a pension fund for health care workers with total investments of $300 billion, was partly based on sustainability grounds.

BlackRock, a New York-based asset manager that manages over $12.5 trillion in investments worldwide, has been under scrutiny for its alleged backtracking on climate change issues. Environmentalists claim that the company continues to invest in fossil fuel projects and companies, despite the assertions made by its CEO, Larry Fink, who has framed climate change as a major risk to investment portfolios.

However, it is not specified if BlackRock's investments in U.S. fossil fuel giants have decreased or remained constant. The allegations against BlackRock's climate change commitment have not been verified by official sources, and the impact of these allegations on BlackRock's reputation and future partnerships is yet to be determined.

BlackRock's competitors in the United States include Fidelity, Vanguard, and State Street, particularly in the asset management and digital asset sectors. The ongoing controversy surrounding BlackRock's climate change stance may influence future investment decisions by pension funds like PFZW.

Despite the termination of the partnership, there is no confirmation that BlackRock's partnership with PFZW has been affected by these allegations. The alleged backtracking by BlackRock may be due to Republican pressure, but this remains unconfirmed as well.

BlackRock has been listed as a top shareholder of U.S. fossil fuel giants, including Exxon Mobil, Chevron, and ConocoPhillips. The company identified as BlackRock's largest competitor in the United States is Fidelity.

The ongoing debate about BlackRock's commitment to sustainability and climate change will likely continue, with implications for the company's future partnerships and its role in shaping the global investment landscape.