AMP’s funds management business is divesting $440 million worth of tobacco-related investments in what it says is the largest move of its kind in Australia.
As part of AMP Capital’s new ethical framework, the company is also divesting $130 million of investments in makers of landmines and cluster munitions.
“In the case of tobacco, cluster munitions, landmines, biological and chemical weapons manufacturers … no engagement can override the inherent dangers involved with their products,” chief executive Adam Tindall said in a statement.
AMP did not mention other sectors that may be affected by its new ethics stance.
“It’s important to note we are only excluding certain companies or sectors by exception. AMP Capital still firmly believes in company engagement in order to effect meaningful change,” Mr Tindall said.
The company said degrees of “harm” and “denial of humanity” were determining factors when it came to divestments.
“It reflects the changing attitudes of our investors, who increasingly do not want to be invested in harmful products,” Mr Tindall said.
Originally published as AMP ditches tobacco assets in ethics move