International asset manager Robeco announced that it has been awarded €15.4 billion (USD$18.1 billion) in investment mandates by pension investor PGGM on behalf of Dutch pension fund PFZW, as part of PZFW’s shift to from a passive strategy to one more focused on sustainability and active management.

Under PFZW’s new Investment Policy 2030, the pension fund focuses on three pillars, including return, risk and sustainability. The fund’s sustainability approach requires investments to meet minimum standards to limit negative effects, targets companies that contribute to the UN SDGs and the goals of the Paris Agreement, and focuses on investments with measurable social value in key focus areas including climate, people and health, and nature and biodiversity.

The announcement follows the recent news that PFZW did not renew a €14 billion mandate with BlackRock as part of the move to the new strategy, with media reports citing BlackRock’s voting record on sustainability issues. LGIM also lost a €15 billion mandate in the shift, due to the firm’s focus on passive investment solutions.

The new mandates awarded to Robeco include €11.7 billion for the 3D Systematic Equity Robeco strategy, which utilizes a bottom-up investment process basing decisions on specific characteristics of individual companies, while balancing return, risk, and sustainability, and €3.7 billion for 3D Credit Robeco, a strategy focused on actively managing a diversified credit portfolio, using a bottom-up approach that equally weighs return, risk, and sustainability. The solutions were co-designed with PGGM.

In its statement, Robeco highlighted its investment capabilities and sustainability expertise as key factors in securing the new mandates. In designing the new solutions Robeco said that it leveraged its proprietary Sustainability IP, including the SDG Framework, which assesses company alignment with relevant SDGs, its Climate Traffic Light, which assesses company alignment with the Paris Agreement, to define an investible universe and ensure transparency into the funds’ holidings.

According to Robeco, engagement with portfolio companies also plays a key role in shaping strategies’ investment universe, aiming to identify and invest in companies with the potential to improve their sustainability credentials.

Robeco added that it sees a growing demand for similar solutions.

Carola van Lamoen, Head of Sustainable Investing at Robeco, said:

“These mandates reflect our shared belief with PGGM and PFZW in the importance of balancing risk, return, and sustainability. By integrating our proprietary Sustainable Investing frameworks and active engagement into both systematic equity and credit strategies, we aim to deliver robust investment solutions that support long-term value creation and positive impact.”