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AMP Capital divests from all tobacco holdings

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By Eliot Hastie
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3 minute read

AMP Capital has completed its divestment of $440 million worth of tobacco manufacturing-related holdings from its portfolio.

The divestment of tobacco securities by AMP is the largest by a fund manager in Australia and is part of a new ethical framework introduced by AMP Capital last year.

In addition to the divestment, AMP Capital has become a founding signatory of the Tobacco-Free Finance Pledge launched at the United Nations in New York.

The pledge marks a global movement that promotes the adoption of tobacco-free finance policies within the financial industry.

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AMP Capital chief executive Adam Tindall said that AMP Capital was proud to have worked with UN agencies and peers to develop the pledge.

“As a global investment manager, we firmly believe in responsible investment and company engagement to drive meaningful change; however, in the case of tobacco no level of engagement can resolve the inherent dangers involved with their products,” he said.

Mr Tindall said the position reflects a growing attitude of their clients who don’t want to invest in harmful products.

“The pledge builds on our existing approach, which included the introduction of a new ethical decision-making framework and a commitment to divest AU$440 million worth of tobacco holdings,” he said.

Mr Tindall said the company had also divested from manufacturers of landmines, and chemical and biological weapons which represented more than $130 million in securities.

“Our ethical framework has shown it is possible to reconcile complex ethical issues in institutional investing while contributing to a sustainable future that creates long-term value for our investors, the environment and the community,” he said.