These exclusions apply to all companies manufacturing or involved in:
The World Health Organization (WHO) estimates the tobacco industry costs the world more than eight million human lives every year. While the negative implication of tobacco are widely recognized, the agency also reports the negative consequences of tobacco on the environment. In addition to the human costs, an estimated 600 million trees, 200,000 hectares of land, 22 billion tonnes of water and 84 million tonnes of CO2 are used in the production of tobacco every year.
Most of the environmental cost falls on low-and-middle-income countries, where water and farmland are used to grow tobacco plants, instead of for food production, which is often desperately needed.
In accordance with the WHO Framework Convention on Tobacco Control, the Fund excludes any investments in:
In 2018, OIM signed the Tobacco-free portfolios pledge, cementing our commitment to excluding tobacco securities from our investments.
In his latest statement on the Intergovernmental Panel on Climate Change (IPCC) report, Secretary-General, António Guterres, called for an urgent transition to renewable energy and vastly scaled up investments in adapting and building resilience to the worsening climate impacts.
As a member of the Net-Zero Asset Owner Alliance (NZAOA), the Fund has committed to transition its portfolio to net-zero GHG emissions by 2050 to align with a 1.5°C global temperature increase scenario. According to the International Energy Agency (IEA), to meet this target and to align with the Paris Agreement, there should be no investment in new fossil fuel supply projects nor in new coal plants. Given the strong pressure from policymakers and the civil society regarding climate change risks and greater support from corporates globally, fossil fuels are becoming stranded assets, with greatly diminished long-term value. Therefore, the objective of ensuring the long-term sustainability of the UN Pension Fund investments is no longer compatible with investing in fossil fuels.
The Fund’s exclusions apply to:
Fossil fuel companies that have started shifting their business models toward a low carbon economy and that plan to continue this path to reach international agreements such as the Paris Agreement are considered as investable transitioning companies.