AQR Capital Management has lost a €4bn ($4.7bn) mandate with Dutch pension fund PFZW, after the €250bn asset owner cut ties with several external managers over concerns about their commitment to sustainability, according to a report by Bloomberg.

The decision is part of a broader restructuring of PFZW’s €50bn equity portfolio, which also saw the fund end mandates with BlackRock (€14.5bn) and Legal & General (€15bn). PFZW said its revised strategy gives equal weight to financial returns, risk management and sustainability, with a particular emphasis on the energy transition.

AQR, which manages about $146bn globally, said it integrates ESG signals across roughly 80% of its portfolios and remains committed to helping clients meet both sustainability and return objectives. The firm had managed a long-only equity mandate for PFZW.

The move reflects a wider trend in Europe, where institutional investors are becoming more vocal about managers they perceive as stepping back from ESG commitments. Dutch pensions in particular are under pressure from campaign groups such as Fossil Free Netherlands, which has urged funds to cut exposure to asset managers linked to fossil fuels.

PFZW said it will now rely on managers including Robeco, Man Numeric, Acadian, Lazard, Schroders, M&G, UBS and PGGM for its revamped equity allocation.

A speokesperson for AQR said in a statement: “We are committed to using our rigorous, data-driven approach to help our clients achieve their ESG goals alongside their risk and return objectives. We respect PFZW’s strategic pivot and will continue to work closely with clients to deliver solutions for their investment objectives.”