Robeco excludes investments in the tobacco industry from its mutual funds. This is a logical next step in its Sustainability Investing approach.
Robeco has been a leader in Sustainability Investing (SI) for years. Not only are Environmental, Social and Governance (ESG) considerations fully integrated into its investment processes, active ownership also plays an important role, as dedicated specialists vote at Annual General Meetings of listed companies and actively engage with companies in the investment portfolios to improve their sustainability profile.
Robeco already excluded tobacco from its sustainable fund range. This exclusion is now extended to the mainstream Robeco funds, including sub-advised funds. The exclusion does not apply to client-specific funds and mandates, where the client’s exclusion list is leading.
The harmful effects of the tobacco industry are increasingly exposed. The World Health Organization estimates that by 2030 tobacco will become the world's biggest single cause of death and disease, killing 10 million people each year. In 2017, the UN Global Compact excluded tobacco companies from participating in the initiative. Clients are increasingly unwilling to accept investments in tobacco.
Robeco takes its responsibility as an investor seriously and actively engages with companies it invests in. As a result, exclusion is only applied when other means are exhausted. In the case of the tobacco industry, engagement will not lead to fundamental change, as tobacco companies are not expected to stop producing cigarettes. Therefore, for Robeco, investing in tobacco is no longer compatible with the company’s commitment to SI.
As some funds had already divested tobacco, investments in tobacco and related companies had already decreased to 0.22% of total assets in funds managed by Robeco.
Peter Ferket: “Robeco has been at the forefront of SI since the 1990s and sees sustainability as a long-term force for change in markets, countries and companies. Given the significant international concerns about the risks posed by tobacco and in view of recent developments, such as the UN Global Compact’s decision, we think the time is ripe for excluding tobacco altogether.”
Carola van Lamoen: “Excluding tobacco is a logical addition to our Sustainability Investing approach; it complements a diverse set of SI instruments such as ESG integration, active ownership, impact investing and our existing exclusions.”
The exclusion applies to all listed companies that are involved in the production of tobacco or significant components of cigarettes. The process of excluding tobacco stocks will be completed by the end of the third quarter of this year.
The content displayed on this website is exclusively directed at qualified investors, as defined in the swiss collective investment schemes act of 23 june 2006 ("cisa") and its implementing ordinance, or at “independent asset managers” which meet additional requirements as set out below. Qualified investors are in particular regulated financial intermediaries such as banks, securities dealers, fund management companies and asset managers of collective investment schemes and central banks, regulated insurance companies, public entities and retirement benefits institutions with professional treasury or companies with professional treasury.
The contents, however, are not intended for non-qualified investors. By clicking "I agree" below, you confirm and acknowledge that you act in your capacity as qualified investor pursuant to CISA or as an “independent asset manager” who meets the additional requirements set out hereafter. In the event that you are an "independent asset manager" who meets all the requirements set out in Art. 3 para. 2 let. c) CISA in conjunction with Art. 3 CISO, by clicking "I Agree" below you confirm that you will use the content of this website only for those of your clients which are qualified investors pursuant to CISA.
Representative in Switzerland of the foreign funds registered with the Swiss Financial Market Supervisory Authority ("FINMA") for distribution in or from Switzerland to non-qualified investors is Robeco Switzerland AG, Josefstrasse 218, 8005 Zürich, and the paying agent is UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zürich. Please consult www.finma.ch for a list of FINMA registered funds.
Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco/Robeco Switzerland AG product should only be made after reading the related legal documents such as management regulations, articles of association, prospectuses, key investor information documents and annual and semi-annual reports, which can be all be obtained free of charge at this website, at the registered seat of the representative in Switzerland, as well as at the Robeco/Robeco Switzerland AG offices in each country where Robeco has a presence. In respect of the funds distributed in Switzerland, the place of performance and jurisdiction is the registered office of the representative in Switzerland.
This website is not directed to any person in any jurisdiction where, by reason of that person's nationality, residence or otherwise, the publication or availability of this website is prohibited. Persons in respect of whom such prohibitions apply must not access this website.