Associations call for the exclusion of the tobacco industry from the SRI Label

Currently under review to take into account the latest developments and practices in sustainable finance, in particular by excluding coal and fossil fuels, the SRI Label does not provide for any sectoral exclusion for the tobacco industry, even though the latter's activities are diametrically opposed to the criteria developed by the Label. The ACT-Alliance against tobacco[1] and the National Committee Against Smoking (CNCT) are requesting his exclusion.

The Socially Responsible Investment (SRI) Label, created in 2016 by the Ministry of Economy and Finance, aims to enable savers and professional investors to direct their investment towards so-called “sustainable” finance.

Tobacco industry activities incompatible with social responsibility

The activities of the tobacco industry are profoundly contrary to the sustainable development goals defined by the UN and pursued by the SRI label. The leading cause of preventable mortality, its consumption is still responsible for 75,000 deaths per year in France and eight million worldwide. In addition to its disastrous consequences on health and its major economic and social cost, the tobacco also seriously harms the environment and human rights.

The associations also denounce the corporate social responsibility (CSR) policies implemented by this industry in the hope of improving its image by promising to act positively in terms of sustainable development. In reality, this is a marketing opportunity to promote its new tobacco and nicotine products. The tobacco industry is also developing a coordinated lobbying strategy to systematically oppose the implementation of proven public health measures (tax policies, banning of flavors, development of smoke-free areas, plain packaging, etc.)

An exclusion in line with France's commitments and shared by many stakeholders

The exclusion of the tobacco industry would be in line with French law, in particular the Public Health Code and with France's commitments through its ratification of the WHO Framework Convention on Tobacco Control (FCTC) and in particular its article 5.3. This demand is shared by several other institutional bodies such as the United Nations Global Compact, which asks companies to align their activities with sustainable development goals, and which removed the tobacco industry from its initiative in 2017.

In 2015, the Caisse des Dépôts decided to exclude the tobacco industry from its "investment universe", along with companies manufacturing, storing or marketing anti-personnel mines and cluster bombs. More and more companies are encouraging financial players to divest from the tobacco sector, such as Tobacco Free Portfolios, Reclaim Finance or Axylia.

A campaign on the occasion of responsible finance week

On the occasion of Responsible Finance Week, from September 29 to October 7, 2022, the ACT-Alliance against tobacco unveiled its #Labelimposture campaign to alert the general public and institutions to the presence of the tobacco industry in so-called "responsible" investment funds. Through a 1'30 min spot, the ACT highlights the extent of the health and environmental damage caused by the tobacco industry and calls for responsible finance without tobacco, where the values carried by investment funds are reflected in the sectors of activity financed.

Keywords: ISR label, tobacco industry, exclusion, ACT, CNCT, CSR

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[1] Alliance against tobacco, #Labelimposture Campaign - Let's demand tobacco-free finance, accessed September 27, 2022