A major Dutch pension fund, PME, has issued a strong warning to US money managers concerning their adherence to Environmental, Social, and Governance (ESG) standards. The potential for a $5.7 billion divestment from these managers highlights the growing divergence between US and European ESG practices. 🤯 PME’s decision comes after Blackrock’s withdrawal from a NZAM (New Zealand Asset Management) deal triggered concerns over unsustainable business practices in the US. 🚫 The warning underscores the financial risks associated with neglecting ESG principles, as highlighted by Daan Spaargaren, Senior Strategist at PME. This divergence could lead to a significant shift in institutional allocations if asset managers fail to ensure compliance with stricter ESG standards. 💰.