Copublished with AnsvarligFremtid, Fossielvrij NL, Sierra Club, SOS UK, Urgewald.
Embargo: 00.01 GMT, 9 December 2025 – Pension funds and other asset owners are exposing clients and beneficiaries to growing climate-related financial risks by failing to stop asset managers supporting fossil fuel expansion, according to new analysis published today (1). Reclaim Finance found that 30 of the biggest US and European asset managers held almost USD 17 billion in bonds newly issued by fossil fuel developers. And while many asset owners say they engage asset managers to improve their climate practices, asset managers continue to support the expansion strategies of fossil fuel developers when they vote in favor of their management at annual general meetings (AGMs). Reclaim Finance and partners are urging asset owners to make their choice of asset manager conditional on ending support for fossil fuel expansion.
An assessment of 30 of the biggest US and European asset managers found that the majority continued to make substantial investments in bonds issued by fossil fuel developers from 1 January 2024 until 30 June 2025 (2). Some asset managers, including BlackRock and Amundi even increased their fossil fuel holdings via recently issued bonds (3).
Pressure from institutional investors for greater climate action has increased in recent months (4) – with some, including the Dutch pension fund PFZW, going as far as to withdraw mandates from BlackRock and other asset managers because of their failure to take climate risks into account (5). But most have remained silent, despite their fiduciary obligations to their clients, which should require them to take climate impacts on the economy, and on their portfolios, into account.
Pension funds and other asset owners can no longer ignore the climate-related financial risks from working with asset managers that are investing in fossil fuel expansion. They have a fiduciary duty to act in the interests of their clients and beneficiaries, yet most seem willing to turn a blind eye.
While some asset owners have already taken action, they must all demand more from their asset managers and insist on robust climate action. They must ensure that asset managers take their climate concerns into account and stop supporting on-going fossil fuel expansion. And if asset managers cannot meet their requirements, they must not entrust them with any new investments.”
Agathe Masson, Reclaim Finance’s sustainable investment campaigner
Only a few of the 30 asset managers assessed appear to have taken credible steps to limit investment in fossil fuel expansion, such as Ostrum Asset Management found not to hold any recently issued bonds from fossil fuel developers and BNP Paribas AM committing not to purchase any bonds issued by oil and gas producers on the primary market.
Reclaim Finance also found no progress when it came to asset managers’ shareholder voting behaviour at company AGMs in 2025. The 30 asset managers analyzed did not use their votes to oppose fossil fuel companies’ expansion plans, with 81% of votes on average in support of company boards of directors, including votes to re-elect directors responsible for expansion strategies (6). Just one asset manager, Union Investment, stood out by voting to oppose fossil fuel expansion strategies at almost all the AGMs of fossil fuel companies (7).
Reclaim Finance and partners are urging pension funds and other asset owners, including ABP in the Netherlands, NEST in the UK and PFA in Denmark to make their choice of asset manager conditional on ending support for fossil fuel expansion. They must require asset managers to stop investing in bonds issued by fossil fuel developers and to vote against the management of companies pursuing fossil fuel expansion and set out clear consequences if asset managers cannot comply.
Once again the growing divide between Europe and the US is on full display. While several European asset managers have acknowledged the financial risks linked to the climate crisis in their policies, the big American asset managers disregard human rights and the climate in pursuit of returns. It is up to the pension funds to act. The policies they demand from their asset managers will either create a race to the top or a race to the bottom. PFZW has already ditched BlackRock and has shown the way forward. Now it is time for others to follow their example.
Hiske Arts, Fossielvrij NL’s campaign leader
Climate change poses a systemic risk to the entire economy and to the retirement security of millions of workers, and asset owners cannot protect portfolios if their asset managers are not prepared to confront that risk. If asset managers cannot provide credible plans to confront the climate crisis and steward investments responsibly, pension funds and other asset owners have an obligation to move their money to managers who will. Doing so sets a powerful precedent for other asset owners around the world: Asset managers who fail to take climate risk seriously should expect to lose clients to those that do better.
Ben Cushing, Director of the Sierra Club’s Sustainable Finance campaign
