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ASH,
ACOSH and partners are working to end investments in tobacco companies by
Federal, State and Territory government investment funds and by major superannuation
and other funds.
THE
CASE FOR TOBACCO DIVESTMENT ...
and counter-arguments
AUSTRALIAN NEWS
WORLD DEVELOPMENTS
WHO HAS EXCLUDED
TOBACCO INVESTMENTS?
THE TOBACCO INDUSTRY'S RECORD
... on "ESG" principles
RESOURCES including ASH factsheet
TAKE ACTION
Why
we should end investment in tobacco
2p factsheet
STOP
PRESS
WA state super fund excludes tobacco
investment
May 2013: Western Australia's state
government super fund GESB has ended its $52m investment in tobacco
companies following a review of policy. GESB
release 16/5/13
West
Australian 17/5/13
VicSuper joins divestment
snowball
May 2013: VicSuper will phase out investment in tobacco
companies - starting from this year. The decision was based on
"expected impact on investment risk and returns for members",
"social and environmental considerations" and "health
consequences of tobacco products."
VicSuper
9/5/13
THE CASE
FOR TOBACCO DIVESTMENT
Why shouldn't Australian governments and funds
invest in tobacco
companies?
1.
Investing in tobacco is
contrary to the National Tobacco Strategy 2012-18.
This strategy, agreed to by all nine
Australian Federal, State and Territory governments, commits them to
implement the FCTC treaty article on preventing tobacco industry
interference - including not investing in tobacco. NTS
2012-18 pp.
14-15; FCTC
Art. 5.3 guidelines
2.
Investing in tobacco is against the public interest.
World Health Organization points to "irreconcilable
conflict of interest" between the tobacco industry and public
health. Tobacco
is a uniquely harmful, addictive product, world's No.1 single preventable cause of
disease - annual death
toll 5m+ including 15,000+ Australians.
3.
Investing
in tobacco is socially irresponsible.
The
tobacco industry has aggressively undermined tobacco control strategies
for decades worldwide, with a history of illegal activities and using deceptive and misleading conduct
and targeting children. It contributes significantly to poverty and
disease worldwide, undermining health policies, aid efforts.
4.
Investing in tobacco
undermines Australian treaty commitments.
Australia
as one of 170+ Parties to WHO Framework Convention on Tobacco
Control has legal obligations to protect health policies from tobacco
industry interference. Article 5.3 Guidelines
state “Government institutions and their bodies should not have
any financial interest in the tobacco industry, unless they are
responsible for managing a Party’s ownership interest in a State-owned
tobacco industry” (4.7). FCTC
Article 5.3 guidelines
5.
Responsible
investment is good business.
Morningstar reports Australian share
funds investing ethically produced 4.65% average annual return in 5 years to July 31, 2010,
against 4.21% for mainstream
share options. Superannuation researcher SuperRatings says super funds' ''sustainable'' Australian
share options have outperformed mainstream
Australian share options over past five years.
Responsible Investment Association Australasia reports:
"Responsible investment is now commonly considered to be 'best
practice' as consideration of ESG [Environmental, Social, Governance]
factors is seen to assist in the management of investment
risks."
RIAA submission to government inquiry 27/7/12
More on ethical investment performance in
Morningstar
video 15/10/12
6.
Divesting in tobacco
has community and
investor support.
2007 Australian survey of
800+ current pension fund members showed
two-thirds objected to their funds being invested in an industry seen as
unethical, promoting ill health. Survey
7.
It's part of a worldwide trend.
Government
funds in Norway, NZ, five US states and several Australian superannuation
and other funds have already
screened out tobacco investment - citing concerns about treaty commitments and
tobacco's
litigation risks and uncertain regulatory future.
8.
Investing in tobacco undermines Environmental, Social and Governance
principles.
TOBACCO INDUSTRY'S RECORD
on ESG
Common
arguments for investing in tobacco
1.
"It's a legal product."
Although promoted by the
industry as a “legal” product (and therefore investment), it's a
unique product in killing half its long-term
users when used as intended.
Tobacco and other legal products have been excluded from investment
options because of treaty conflict or social irresponsibility. The tobacco industry has a long
history of illegal, deceitful conduct.
2.
"A fund's duty is to its investors"
The duty of an investment
fund is to maximise returns for its members/investors - subject to their
directions and in line with best practice. Long-term best
interests may not be consistent with short-term return. Funds are right
to consider concerns about investing in tobacco - conflicts with treaty obligations, conflicts of
interest, litigation
liabilities, and the industry's uncertain regulatory future.
3.
"Funds should be independent, free of political
interference."
Funds properly follow
guidance from their investors (government or members) as to best
practice, including complying with ESG principles and/or treaty
obligations. Tobacco should not be singled out for exemption from such
guidance.
4.
"Tobacco is a good investment"
The tobacco industry has been
described as "a sunset industry", its long-term future in
doubt. UniSuper has screened tobacco out of its its
investment options because "long tail litigation liabilities and
uncertain regulatory future.... presented investment risks which
warranted the exclusion of tobacco stocks." UniSuper
FAQs
AUSTRALIAN
NEWS
VicSuper joins divestment snowball
May 2013: VicSuper has
become the latest major super fund to phase out investment in tobacco
companies - starting from this year. The decision was based on
"expected impact on investment risk and returns for members",
"social and environmental considerations" and "health
consequences of tobacco products."
VicSuper
9/5/13
SunSuper divests from tobacco
March 2013: Another
superannuation fund, SunSuper, will divest its $54m
tobacco stocks after a regular investment review. ASH
comment in Ethical
Investor 26/3/13 -
and see who
else has divested
Move for
Vic and Tas governments to dump tobacco stocks
February-March 2013: Greens will move for the
Victorian and Tasmanian governments to exclude tobacco from all its investments,
following the decision by the federal government's Future Fund to divest from
tobacco. Greens
Vic release 28/2/13
and
Greens
Tas release 4/3/13
Future
Fund goes tobacco-free!
February 2013: Australia's Future Fund announces it is excluding
primary tobacco producers from its investments. Health groups welcome
the end of the $230m+ investment as restoring consistency with Australia's health and aid
policies.
ASH Aust release 28/2/13
ABC
News 28/2/13
Future
Fund buys into tobacco company that sees death as a plus
February 2013: Australian
government's Future Fund has bought more tobacco
shares, now holds over $230m in
tobacco - adding stake in Philip Morris (Czech). CEO
Mark Burgess questioned by Greens Senator Richard Di Natale
in Senate Estimates Committee after it's revealed a Philip Morris-commissioned report told the Czech government in 2001 it was
saving them money by causing deaths. Age
13/2/13 ABC
news 12/2/13
Tasmania embarrassed over tobacco
investment
February 2013: Tasmanian
government faces criticism over $27m invested by the state's
Retirement Benefits Fund in tobacco companies Philip Morris, BAT, Imperial, Japan Tobacco,
Swedish Match.
Labor-Green
government accused of hypocrisy by Liberal opposition - but Libs make clear their support for the tobacco investment as "legal". Health groups says
investment inconsistent with health policy, treaty commitments and community
attitudes.
Mercury
10/2/13
SA excludes investment in tobacco
January 2013: South Australian government fund manager
excludes tobacco
companies from all investment portfolios - slashing $20m of
$29m of total tobacco investment, including by public sector super
funds. Health Minister Jack Snelling says Funds SA decision in
line with government public health aims, community
attitudes. Minister's
release 25/1/13
SkyNews
25/1/13
HESTA super fund dumps tobacco investment
January 2013: Health and community service
employees' super fund HESTA will drop all of its nearly $35m investments
in tobacco by around April. The 750,000 member fund
responds to members' and health groups' view that the investments
conflict with health aims. HESTA joins other super funds and
government investment funds opting to divest from tobacco as unethical. Report with ASH comment
in SMH
10/1/13 HESTA
tobacco-free investment factsheet
NSW drops
$224m tobacco investment - ASH urges Fed and Vic funds
to follow
2012: ASH welcomes "great leadership" by the NSW government
in excluding tobacco from all government investments, direct and
indirect. ASH urges the Federal Future Fund and Victorian government to
follow. NSW
government release 26/11/12 ASH
release 26/11/12
Future Fund says treaty clash is a ground for
excluding investment
2012: Future Fund answers Question on Notice in Senate Finance and Public Administration Legislation Committee:
The Board’s.... framework
provides for exclusion from the portfolio where an activity may....
contravene a convention or treaty ratified by Australia... (Hansard,
F&PA question F112, asked 29/10/12) ASH and
allies are urging the Fund to end its $210m investment in tobacco partly because Australia has ratified WHO
Framework Convention on Tobacco Control - Art. 5.3 Guidelines
say “Government institutions and their bodies should not have
any financial interest in the tobacco industry, unless they are
responsible for managing a Party’s ownership interest in a State-owned
tobacco industry”. FCTC
Art. 5.3 guidelines
Victoria
urged to drop $100m tobacco investment
2012: Victorian government urged to drop $100m+ investment in tobacco companies via
Vic Funds
Management Corporation. Health/medical groups including ASH point
out that investors via VFMC include Vic Health Department, Transport Accident Commission, Managed
Insurance Authority, WorkSafe, Royal Children's Hospital, Uni of
Melbourne. Age 8/11/12 with ASH comment
Future Fund
considers its tobacco investment
2012: Future Fund Chair David Gonski faces questions in Senate
Estimates hearing. Fund reviews its
$210m tobacco investment under revised Environmental, Social and
Governance (ESG) policy after strong public concern. SMH
25/10/12
Widespread calls to end the socially
irresponsible and growing investment were led by health groups
ASH, AMA, ACOSH, Heart Foundation, Lung Foundation. Tobacco industry's appalling
ESG record and CASE FOR
DIVESTMENT
Call for urgent review of growing Future Fund
tobacco investment
2012: AMA, Heart Foundation and
ASH urge new Future Fund Chair David Gonski to seek urgent review of the
fund's growing unhealthy investment in tobacco - after Senate
questioning revealed almost 250m Aussie dollars are now funding tobacco
companies via the government fund. AMA,
ASH and Heart Foundation release 16/10/12
ABC
News 16/10/12
Anne Jones of ASH comments on ABC
Radio National 17/10/12
Health leaders call for end to Future Fund
tobacco investment
2012: ASH and partners urge Australian parliament to end
tobacco investment by Australia's Future Fund. Senate debates bill
to ban tobacco investments by the Fund. Health groups ask government to end the $210b investment by legislation or
ministerial direction. ASH
Aust - Heart Foundation - Aust Lung Foundation release
13/9/12 Call for rethink on tobacco investment in Australian Financial Review 12/9/12 Lib
Senator Scott Ryan defends tobacco investment in ABC
Drum opinion 12/9/12
No future in tobacco investment: ANU Law Professor Matthew Rimmer
comments in The
Conversation 13/9/12
Senate Committee doesn't back ethical investment
bill
2012: Senate Standing Committee
recommends against Greens bill to set socially responsible investment
guidelines for government's Future Fund, excluding tobacco. Majority report
says bill risks "significant adverse consequences"
for the Fund, pointing to existing mechanisms that "ensure that the Future Fund adheres to best practice and acts
responsibly." Majority
& dissenting reports 23/8/12, submissions/hearings including ASH
input
NSW urged to catch up on responsible investment
2012: NSW government urged by health leaders to divest from
tobacco stocks as ACT has done (below). ASH
comments in SMH
21/8/12
ACT leads the way in dropping
tobacco investment
2012: ACT government becomes Australia's first to
specifically exclude tobacco from government investment under new
responsible investment guidelines. Health leaders welcome the move,
call on Federal and other states and territories to
follow. Canberra
Times 20/8/12
ASH
and partners release 20/8/12 ACT
responsible investment policy
NSW urged to catch up: SMH
21/8/12
Local Government Super excludes
tobacco
2012: Australia's Local
Government Super Fund excludes tobacco from its investment options
under new socially responsible investment guidelines. It joins First
State and Uni Super (below) in screening out tobacco. Ethical
Investor 18/8/12
Tobacco investment bad for Australia, inquiry
told
2012:
ASH tells Senate Standing Committee Australia’s Future Fund should not invest in tobacco.
ASH supports
bill to set socially responsible
investment guidelines for the Fund, excluding tobacco.
ASH CEO Anne Jones tells the Committee barring tobacco investment is consistent with Australia's
treaty commitments, health and aid policies; Future
Fund Act; and worldwide best practice. Also
addressing the Committee: Future Fund, Finance Dept, Responsible Investment
Assoc, Quit Victoria,
more. Senate
Standing Committee Inquiry
Transcript
8/8/12 hearing
including ASH, Quit Vic, Future
Fund
ASH
written submission and
All
submissions
Comment in Business
Spectator 10/8/12
Future
Fund details$200m+ investment in death and disease
2012: Future
Fund provides details
of its investments in tobacco companies - up 40% in a year to $210m and including
low-middle income
nations like Indonesia, India, Malaysia and Brazil, where the industry
uses aggressive tactics and targets children. Examples
Super move: First State Super drops tobacco
stocks
2012: Australia's First State Super fund removes tobacco companies
from its investment portfolio - a move welcomed by health leaders.
First
State Super release 19/7/12 and
Factsheet
Future Fund defends growing tobacco
investment
2012: Future Fund Managing Director Mark Burgess, along with
Finance Minister Wong, questioned by Greens in Senate estimates
committee about tobacco investment. Burgess admits the investment now
worth $200m+, resists suggestions of ending it as
"quasi-political".
Senate
Estimates Hansard 23/5/12
pp. 47-50
States, territories urged to stop
investing in tobacco
2012: ASH and partner ACOSH write to all state and
territory governments urging an end to tobacco investment. ASH is
advised Tasmania has no direct investments and ACT is reviewing its
policy. ASH Australia,
March-June 2012
Federal Government under pressure over
Future Fund tobacco investment
January 2012: Gillard Government reported to be under
pressure to stop its Future Fund investing in an industry that
undermines the government's health policies. Melbourne
Age 9/1/12 Report
also mentions that in October 2011 the Canadian state Alberta divested
tobacco shares because it was suing the tobacco industry for health
costs caused by smoking
Australian health groups seek
government tobacco divestment
2011: Health groups write to Australia's Prime Minister, Ministers
and government's Future Fund, expressing concerns at over $140m
investment in tobacco companies via the Fund, and calling on the
investment to end. Responses are inconclusive. Greens introduce bill to
end government investment in tobacco. ASH
Australia, 2011
UniSuper excludes tobacco
investment
2011: UniSuper tells members it has screened tobacco out of its investment options because "long tail litigation liabilities and
uncertain regulatory future.... presented investment risks which
warranted the exclusion of tobacco stocks." UniSuper
FAQs - Responsible Investing - tobacco
NSW government under pressure over
tobacco investment
2006: NSW government accused of "hypocrisy" for investing
in tobacco companies. Then Shadow Health Minister Jillian Skinner says:
"I find it hard to... defend a government owning shares in a
tobacco company.... one of its primary responsibilities is looking after
the health of the population of New South Wales.... I think the Premier.... must sell these shares
today." ABC
Radio "World Today" 26/6/06
Mrs Skinner became Health Minister in 2011; but despite written requests for
review, NSW government-related entities may still have indirect
investment in tobacco
companies.
ASH starts ball rolling for super fund
divestment
2002: ASH Australia begins
to approach superannuation funds seeking their support for ending
investment in tobacco companies.
ASH Australia, October 2002
WORLD
DEVELOPMENTS
Tough policies from Chile as
noose tightens on tobacco industry
April 2013: With
strong government action to reduce tobacco use, the tobacco industry's
outlook in Latin America is worsening says Euromonitor
International, a strategy research group for consumer products. One
example is Chile, with smokefree public places laws, advertising
restrictions and prohibition of additives including menthol. All this makes tobacco an increasingly uncertain investment.
Tobacco
Unfiltered 18/4/13
The industry's worldwide future assessed by a Wall St analyst
in Tobacco
Unfiltered 15/3/13
US
state Alberta divests tobacco stocks
2011: Government of US state of Alberta directs its fund managers to
sell off direct investment in tobacco companies. Physicians
for Smokefree Canada 20/10/11
Norway:
Government pension fund bars investment in tobacco
2010: Norway’s
government pension fund can no longer be invested in tobacco companies
under new guidelines introduced by the country’s Ministry of Finance.
Government follows its Council on
Ethics’ recommendations to sell tobacco holdings. Finance
Markets 5/3/10
NZ: National super fund divests in tobacco
2007: Guardians of New Zealand
Superannuation Fund decides to divest tobacco stocks from its investment
portfolios. The
Board’s
assessment and divestment decision was that the
Fund’s investments in tobacco companies is "inconsistent with its
responsible investment standards."
NZ
Super release 23/10/07
USA: Five state employee super funds
have divested in tobacco
2000: California Public Employees' Retirement System
decision to exclude tobacco investment means five US state employee
super funds have divested or restricted tobacco holdings. New
York Times 29/10/2000
WHO
HAS EXCLUDED TOBACCO INVESTMENTS?
Details under RESOURCES
- Australian jurisdictions, whole-government: ACT (2012), NSW
(2012), SA (2013).
- Australian government's Future Fund (2013).
- Sovereign wealth funds in Norway, New Zealand and five US states.
Australian super funds: HESTA, First State, Local Government Super,
UniSuper, Christian Super, SunSuper, VicSuper, GESB.
Other funds:
- AMP Capital
- Australian Ethical Investments
- Hunter Hall
- UCA Funds
THE
TOBACCO INDUSTRY'S RECORD History
of tobacco industry misdeeds
Tobacco
companies claim to be “socially responsible” corporations. They reinvent
themselves by giving generously to political parties and worthy causes like disaster relief, aid and homelessness. They set up front groups and
sponsor ineffective campaigns
to reduce tobacco litter, youth smoking and child labour. They run efficient
office programs for reducing carbon and waste, and give staff time off to
volunteer for charities.
But
not only are their products deadly, addictive and marketed to children, the
tobacco-growing business has been accused of relying on slave labour, child
and human rights abuses and causing large
scale deforestation, soil depletion and green tobacco sickness; adding to
climate change, hazardous litter, toxic waste and encouraging many poor countries
to swap sustainable food production for growing a product that kills people
when used as intended.
Investment policies are often framed to
meet Environmental, Social and Governance ("ESG") principles.
How does the tobacco industry measure up?
ENVIRONMENTAL
More about Tobacco
pollution
Tobacco
litter trashes land and waterways, tobacco farming eats up farmland and
forests.
2011
review of tobacco farming environmental health impact shows the full global impact.
ASH
UK factsheet 2009
examines tobacco growing and pesticides, green tobacco sickness,
deforestation, food production impact, pollution, fire risk, climate
change… and industry response.
5.5
trillion cigarettes are consumed globally every year. Of these, 4.95
trillion are filters, dumped somewhere in the environment. Cigarette
Butt Pollution Project has the staggering worldwide figures. In
Australia, cigarette butts are one of the biggest causes of litter, trashing
our bushland, parks, beaches and waterways. Up to 20 billion ugly, toxic filters are discarded each year, with ratepayers footing
the bill for the cleanup.
SOCIAL
The
industry’s violations of human rights assessed by
Tobacco
Control report 2012, and ethical and legal issues in
Tobacco
Control 2005
Tobacco
Control report 2006 looks at a British American Tobacco corporate
responsibility project to sidestep tobacco child labour exploitation issues.
Social
responsibility in tobacco production? Tobacco
Control report 2011 looks at tobacco companies’ use of green
supply chains to obscure real costs of tobacco farming – using tobacco
industry documents, industry websites, interviews with tobacco farmers in
Africa, farm authorities, trade unionists, government officials and
transnational tobacco executives.
More at Human
Rights Tobacco Control Network
and at FairTradeTobacco.org
- a resource on Tobacco Industry agriculture exploitation with case studies
from India, Malaysia, Kenya, Turkey, Brazil, Bulgaria and more.
GOVERNANCE
Ethical
behaviour is a fundamental cornerstone of good governance. See
long
history
of tobacco industry misdeeds.
WHO
report 2008 documents
decades of tobacco industry tactics worldwide to block and undermine effective health policies
and monitoring of tobacco industry behaviour.
INGCAT
report 2001 examines flaws in the tobacco industry’s own International
Tobacco Product Marketing Standards, the purpose of tobacco advertising, the
fallacy of tobacco industry arguments on advertising and the case for
comprehensive advertising bans.
RESOURCES
see
also above under Environmental, Social, Governance
From
ASH:
Why
we should end investment in tobacco
factsheet
ASH, ACOSH, Heart Foundation factsheet (2013, one page,
2-sided pdf) makes the case for Australian federal, state and
territory governments to exclude tobacco from investment under socially
responsible policies. Arguments and counter-arguments; the tobacco
industry's record; who has already divested; next steps.
Briefing
paper for super funds
4p briefing (2013) suitable for sending to your
super fund. Outlines the risks of funds investing in tobacco and why
they should divest on ESG and best business practice grounds.
For a copy, contact
ASH.
Positive
message in Future Fund butting out tobacco investment
ASH opinion in Financial
Review (March 2013)
Other resources (in alphabetical order):
ACT
Government's responsible investment policy
Adopted August 2012,
specifically excluding tobacco investment.
AMP
Capital
Socially responsible
investment policy says: Based
on our assessment, the tobacco industry, or any company within it, has
social costs that significantly outweigh any social or economic benefit
and therefore, we have an absolute negative screen on companies with a
material interest industries (10% as measured by a relevant indicator
such as investment or sales) in the tobacco industry.
Australian
Ethical Investment Ltd
Ethical fund manager that excludes tobacco
under its charter
because it avoids investments which “extract, create, produce,
manufacture, or market materials, products, goods or services which have
a harmful effect on humans”.
Butt
out of pensioners' lives
Persuasive comment in Hobart Mercury 16/3/13 from veteran
Tasmanian health advocate Kathryn Barnsley, urging her state's
Retirement Benefits Fund to divest from tobacco.
Christian
Super
Australian super fund excludes
investment in tobacco under its Ethical Investments Charter.
Ethical
Investor
Industry magazine that reports on
trends and news for investors and fund managers - including ASH comment
on latest wins (at March 2013) in tobacco
divestment.
FCTC
Article 5.3 toolkit
Factsheets for governments,
with step-by-step guidance
on legislative and policy elements of preventing tobacco industry
interference in health policies under Article 5.3 of WHO Framework
Convention on Tobacco Control. From International Union Against
Tuberculosis and Lung Disease (IUATLD).
First
State Super
Factsheet on Australian super fund's decision to end tobacco
investment from 1 July 2012.
Government
Investment Funds Amendment (Ethical Investments) Bill 2011
Australian amendment bill moved 2011. Senate
Committee report did not support it. Majority
report 23/8/12, dissenting report, submissions and hearings
Bill
ASH
submission
All
submissions
Transcript
8/8/12 public hearing
including testimony by ASH,
Quit Vic, Future Fund
HESTA
Super tobacco-free investment factsheet
From the health industry super fund that divested in 2013.
Implementing
ESG principles in investment decisions
Financial Services Institute of Australasia
webpage with link (go there and click on above title) to practical
guidelines for superannuation professionals. Includes significance of UN
Principles for Responsible Investment
and step-by-step guide to implementation.
Leave the Future Fund alone
Liberal
Senator Scott Ryan defends investing Australian money in tobacco
companies.
ABC
The Drum opinion 12/9/12
No future in tobacco
investment
ANU Law Professor Matthew Rimmer
comments. The
Conversation 13/9/12
NZ
Super
23/10/07 release: Considering
Crown action internationally, and at the domestic level, the unusual
characteristics of the tobacco industry, particularly with regard to
product safety and ethics, and the effectiveness of different
shareholder responses, … divestment and exclusion of the Fund’s
tobacco holdings would be the most effective response.
Responsible
Investment Association Australasia
Peak body of professionals in ethical investment in Australia and New
Zealand. RIAA points out that Australia is a world investment
leader and that responsible investment is commonly considered "best
practice".
Smokes
But No Cigar for Gonski's Fund
August 2012 comment in Business Spectator says the Future Fund could
disinvest as other national funds have, with no significant downside for
its investors.
SunSuper the latest to kick the tobacco habit
March 2013 update in Ethical Investor with ASH Australia comment.
More on socially responsible investment: Ethical Investor
Tobacco Free Pensions
UK blog reports on British and other international developments.
Tobacco
in Australia: Facts and Issues
Comprehensive Australian resource includes
questions about the tobacco industry's future.
Tobacco
Industry Interference with Tobacco Control
WHO report 2009 on what
the industry is doing to block, delay, weaken and undermine public
health policy - and how it can be stopped, including by ending
investment by government and its agencies in tobacco companies.
Tricky
path forwards for funds
Comment by Financial Review calls on
Future Fund to rethink its tobacco investment. Australian Financial Review 12/9/12
UCA
Funds
Ethical
guidelines exclude tobacco.
UniSuper
Australian super fund
screened tobacco out of its investment options because "long tail
litigation liabilities and uncertain regulatory future.... presented
investment risks which warranted the exclusion of tobacco stocks."
UN
Principles for Responsible Investment
Collaborative project backed by
the United Nations for fostering responsible investments. Some super funds have
endorsed and implemented responsible investment principles - those that
have not should be urged to follow.
VicSuper
to phase out investment in tobacco
Super fund's website
explains decision based on "expected impact on investment risk and
returns for members", "social and environmental
considerations" and "health consequences of tobacco
products."
TAKE ACTION
1. Write to your own super fund
Anyone
can write to their own super fund asking it to adopt responsible
investment guidelines that exclude tobacco. |
- First,
find out what your fund's existing investment policy is
and whether it excludes tobacco investment. Ask whether
they have funds invested in the
tobacco industry; if they have a policy on ethical or socially
responsible investment or "ESG" guidelines, and if so, have they decided that tobacco is
allowed or excluded under their policy.
- If the fund is investing in tobacco or
their policy is unclear, you could use the reasons under "Why shouldn't...?" above as the basis for your
request that the fund adopt socially responsible investment strategies
that exclude tobacco.
ASH has a 4p briefing paper you can send to
your super fund. For a copy, contact
us.
2.
Send
letters/emails to political leaders calling for an end to tobacco investment
Most
Australian governments still invest in tobacco companies and
should be urged to end these unethical, socially irresponsible
investments. Consider reasons under
"Why
shouldn't...?" above as a basis for calling for an end to governments'
direct and indirect investment in an industry that harms public interest,
government health policies and the economy.
So far, Australia's national Future Fund as well as the ACT, NSW and SA have specifically
excluded tobacco companies from their investments. Tasmania and WA say
they have no direct investment in the tobacco industry but have no
apparent specific written policy ensuring this. Other jurisdictions may have tobacco investments,
have no
policy against this or stay at arm's distance from their investment
funds' decisions.
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