Medibank’s CEO Craig Drummond today announced the company has moved $170m of investment in international equities to a new tobacco-free investment fund.
The fund, launched with State Street Global Advisors, excludes more than ten companies which have significant business activities involving tobacco and controversial weapons.
“We’re proud to be investing in a tobacco-free portfolio.
“This decision is just good business sense. Our mission for better health has to carry all the way through our business – from our employees and customers through to investments.
“That’s why we’re also targeting the Medibank Better Health Foundation’s investment in health projects and we’ll be making further announcements on this soon,” said Mr. Drummond.
Medibank’s seed investment in the State Street fund means its policy of excluding tobacco investments has been implemented across its entire $2.4 billion investment portfolio, as international equities were the final area to exclude tobacco.
According to the Cancer Council Australia tobacco smoking is the largest preventable cause of cancer in Australia. At last count almost 15,000 Australians died from tobacco related diseases annually (2005, Australian Institute of Health and Welfare).