What is the Tobacco-Free Finance Pledge?
The Tobacco-Free Finance Pledge, highlights the leadership of financial institutions that have implemented tobacco-free finance policies and encourages others to follow suit. The Tobacco-Free Finance Pledge builds on key global finance initiatives such as the Investor Statement in Support of World No Tobacco Day, produced in 2017 by the UN-supported Principles for Responsible Investment (PRI), UN Environment Programme Principles for Sustainable Insurance (PSI), and Tobacco Free Portfolios.
Thus far, $16,602,266,105,682 total assets under management from 195 signatories are signed up to The Pledge (and counting!).
Who is Tobacco Free Portfolios?
Tobacco Free Portfolios is an international organization tackling the tobacco industry’s funding. It reduces tobacco use by advocating to exclude tobacco companies from public and private investments, such as pension funds, endowments, and other funds.
The organization engages with investors, asset owners, and other stakeholders to promote tobacco-free investments and strengthen the global movement to reduce tobacco use. They also provide support and resources to help investors and asset owners transition to tobacco-free investment options.
What is the tobacco industry, and what's wrong with it?
The tobacco industry is damaging to public health. Tobacco use is the leading preventable cause of death and disease worldwide, killing more than 8 million people yearly. Tobacco use is linked to various serious illnesses, including cancer, heart and lung diseases, stroke, and diabetes. It is also linked to other health problems, including pregnancy complications, vision loss, and gum disease. Moreover, tobacco products’ production and marketing often involve unethical practices, such as targeting vulnerable populations, including children and teenagers.
Addressing the financing of tobacco companies—across lending, insurance, and investment—is essential to comprehensive global tobacco control efforts. The finance sector can positively address global health priorities, such as the tobacco epidemic. With 8 million deaths worldwide each year and a forecast of 1 billion deaths this century due to tobacco-related illnesses, global and multi-stakeholder collaboration is needed to tackle the devastating impact of tobacco on society and the environment.
What does the Tobacco-Free Finance Pledge say?
We choose to be part of the solution to ensure a tobacco-free world for present and future generations. Therefore, by signing the Tobacco-Free Finance Pledge, signatories will, where relevant and appropriate:
- Collaborate to raise awareness of the issue of lending to, investing in, and insuring tobacco companies;
- Encourage the adoption of tobacco-free finance policies across lending, investment, and insurance;
- Encourage the alignment of lending, investment, and insurance policies with the aims of the United Nations’ Sustainable Development Goals and the World Health Organization Framework Convention on Tobacco Control;
- Consider forming or supporting partnerships within or across sectors to promote tobacco control initiatives;
- Help guide a widespread transition towards tobacco-free finance by supporting activities that build knowledge and understanding of tobacco-free finance;
- Encourage more organizations to become signatories to or supporters of the Tobacco-Free Finance Pledge; and or
- Gather at key events with an expanded global network committed to the Tobacco-Free Finance Pledge.
Why did FLIT Invest sign the Tobacco-Free Finance Pledge?
FLIT Invest recognizes the role that finance plays in carving a sustainable and just future. When it comes to tobacco, it is clear that we must divest from this harmful industry to pursue positive environmental and social impact.
"Tobacco Free Portfolios is thrilled to welcome FLIT Invest as a Signatory of the Tobacco-Free Finance Pledge. FLIT Invest adds its voice to the nearly 200 global Signatories representing over $16 Trillion committed to tobacco-free finance and the belief that the alignment of capital and public health is critical for a sustainable and prosperous future."
"FLIT Invest is proud to be a signatory of the Tobacco Free Finance Pledge. Divestment is a powerful tool to align your investment with your values and make an impact. By signing this pledge, FLIT Invest chooses to be part of the solution to ensure a tobacco-free world for present and future generations. Tobacco Free Portfolios are at the forefront of investor education and advocacy around tobacco-free finance, and we are proud to be a part of their initiative."
Can I divest from tobacco with FLIT Invest?
Yes! Tobacco is one of the 6 industries you can divest from when you invest with FLIT Invest. We are able to offer these industry exclusions by utilizing the data from the leading shareholder advocacy nonprofit organization As You Sow. FLIT Invest embeds the As You Sow fund scores to meet sustainable finance standards and back our anti-greenwashing commitment. You can read more about each industry exclusion in our article Divestment – which industry exclusions are right for you?
Anyone can make a difference – make your investments tobacco-free today by signing up to FLIT Invest.
Footnote 1: Content is for informational and educational purposes only. Any views, strategies or products discussed may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. The information contained herein should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund or ETF before investing.
