AustralianSuper is moving out of tobacco
After careful consideration, the AustralianSuper Board has decided that investing in tobacco is inconsistent with our purpose of helping members achieve their best possible retirement outcomes. As a result, the Fund has decided to exclude companies that manufacture tobacco products from the portfolio.
We believe tobacco warrants special consideration due to its particular characteristics and the damage it causes. There is no safe level of consumption; it’s highly addictive and it is the largest preventable cause of death in the world.
While we believe engaging with companies through our Active Owner program is an effective way to influence and improve environmental, social and governance (ESG) outcomes, tobacco is the exception to our ESG framework given its unique characteristics.
We are applying our usual methodology to replace our tobacco investments with others that will deliver ongoing long-term net returns.
The divestment process will be carefully managed to minimise the impact on the portfolio and members’ outcomes and is expected to be completed by the end of 2019.