Library | ESG issues

Tobacco

Tobacco is a plant-based product containing nicotine, an addictive substance, primarily consumed through smoking, which poses serious health risks, environmental damage, and economic costs. Smoking is a major cause of preventable diseases, straining healthcare systems and reducing quality of life. Tobacco production also leads to deforestation, water consumption, and pollution. Due to regulatory pressures, legal risks, and declining social acceptance of smoking, investors may reduce exposure to tobacco companies in their portfolios.

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Tobacco Supply Chain Database

Tobacco Control Research Group (TCRG)
The Tobacco Supply Chain tool is a publicly accessible database mapping the global tobacco supply chain from agriculture to retail by identifying companies, processes and countries involved.
Online tool/database

Ethical investing disclosure guidance

Financial Markets Authority (FMA)
This report summarises draft guidance from New Zealand’s Financial Markets Authority on ethical investment disclosure. It sets expectations under the FMC Act, warns against greenwashing, and outlines principles of clarity, substantiation, consistency, and management of third-party involvement to improve transparency and accuracy for investors.
Research
19 September 2025

Tobacco Control Research Group (TCRG)

Academic Institutions
Tobacco Control Research Group (TCRG) at the University of Bath conducts international, multidisciplinary research into the tobacco industry’s influence on health and policy. TCRG generates evidence to support effective tobacco control, informs public health policy, and provides training on industry monitoring and accountability to advance global health outcomes.
Organisation
2 research items

ShareAction's point of no return series

ShareAction
The Point of No Returns benchmark series assesses the world’s largest asset managers on responsible investment across climate, biodiversity, social issues, governance, and stewardship. Published by ShareAction, the series provides rankings, sector-wide analysis, and examples of practice to guide improvement and accountability.
Benchmark/series

Tobacco free portfolios: The toolkit 12th edition

Tobacco Free Portfolios
This toolkit offers a framework for finance professionals to invest in tobacco-free portfolios. The toolkit covers various areas including the Tobacco-Free Finance Pledge, prospective investment risks and case studies, with a call to action for the industry to follow.
Research
28 January 2020

The future of tobacco stocks: a scenario analysis

Maastricht University School of Business and Economics
This report identifies drivers of change within the tobacco industry and the potential risk factors that may arise as a result. The report conducts a scenario analysis that maps out three potential outcomes for the industry and the relative impact on the share price of the world’s largest tobacco companies.
Research
31 July 2018

Tobacco Free Portfolios

Finance / Corporate Focused NGOs & Think Tanks
Tobacco Free Portfolios is an organisation that aims to promote tobacco-free finance to support sustainability. It seeks to provide relevant information in support of the exclusion of tobacco stocks from investment portfolios. Working collaboratively with health and finance to end preventable deaths from tobacco.
Organisation
2 research items

Tobacco: Reviewing the growing financial risks

Tobacco Free Portfolios
Addresses the performance declines in the tobacco industry and presents evidence of how it can be a financial risk for investors. It examines industry trends and outlooks in the context of varying future scenarios and provides recommendations to support future investment decisions.
Research
30 November 2018

The Tobacco Report: How divesting from tobacco affected returns over 20 years

Genus Capital Management
This report discusses the investment performance of investment portfolios containing tobacco companies and those that excluded tobacco companies. The research concludes that there was no statistically different performance between portfolios that included and excluded tobacco companies over the last 20 years.
Research
28 February 2019
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