1. Dr Bronwyn King, you've been awarded for encouraging superannuation funds to divest tobacco holdings. Would you say that tobacco divestment is the next big ESG issue?
As a practicing doctor and somewhat of an outsider to the industry, I haven’t necessarily viewed tobacco as an ESG issue specifically, but rather as an issue for the finance industry more broadly. I suppose for me, it is a mainstream concern.
2. What's the opportunity and risk for investors if incidences of tobacco divestment continue?
I like to think of tobacco free investment as an opportunity for organisations and leaders to demonstrate ethical decision-making that considers a range of duties beyond financial risk and return, such as human rights and health.
In terms of the health impact, the risks of supporting tobacco are well documented. There is no safe level of exposure to tobacco.
There is also the investment risk to consider.
Of course there is reputation risk as well.
An issue of great importance to me, and I’m sure many in the finance industry is that almost no cigarette can be guaranteed to be free from child labour[1].
I believe we are now seeing a Paradigm Shift on tobacco recognised through the World Health Organisation’s Framework Convention on Tobacco Control (WHO FCTC) which was launched in 2004 and now has 180 signatories.
3. What role do you play in shaping the global ESG agenda? If you were to give one piece of advise to a team of investors, what would it be?
Whilst I am now the CEO of Tobacco Free Portfolios, the not-for-profit organisation I founded, I am also the Project Manager for the Global Task Force on Tobacco Free Portfolios established to encourage tobacco free investment across the globe, therefore I am very much engaged in the global agenda, from both a health and finance perspective.
My one piece of advice to a team of investors would be to implement a tobacco free mandate for all investments. Tobacco stands alone to any other product or resource, if a product was produced tomorrow that had the devastating impact of tobacco – six million deaths per year - it would not be tolerated. Every investment decision, no matter how small, contributes to this positive, and important movement.
4. If we look beyond tobacco, what next big issue do you see entering the forefront of the ESG / responsible investment agenda?
I see the next big issue that should be addressed is the concept of fiduciary duties. A re-framing of these duties to make responsible, long-term decision-making to the benefit of society paramount is essential to all issues considered under the ESG and mainstream agendas.
5. Why should investors attend the "The emerging ESG issues" session at PRI in Person?
I have found the people that work in ESG and RI to be passionate, dedicated and hard working. It always helps to see and listen to people to really understand what they are championing and why it matters. I certainly hope people come to listen to me as I’ve come a long way to speak!
[1] Graen, L. (2015, January 27). BMJ Group blogs. Retrieved August 30, 2015, from http://blogs.bmj.com/tc/2015/01/27/tobacco-industry-confronted-with-child-labour/?q=w_tc_blog_sidetab
As a practicing doctor and somewhat of an outsider to the industry, I haven’t necessarily viewed tobacco as an ESG issue specifically, but rather as an issue for the finance industry more broadly. I suppose for me, it is a mainstream concern.
2. What's the opportunity and risk for investors if incidences of tobacco divestment continue?
I like to think of tobacco free investment as an opportunity for organisations and leaders to demonstrate ethical decision-making that considers a range of duties beyond financial risk and return, such as human rights and health.
In terms of the health impact, the risks of supporting tobacco are well documented. There is no safe level of exposure to tobacco.
There is also the investment risk to consider.
Of course there is reputation risk as well.
An issue of great importance to me, and I’m sure many in the finance industry is that almost no cigarette can be guaranteed to be free from child labour[1].
I believe we are now seeing a Paradigm Shift on tobacco recognised through the World Health Organisation’s Framework Convention on Tobacco Control (WHO FCTC) which was launched in 2004 and now has 180 signatories.
3. What role do you play in shaping the global ESG agenda? If you were to give one piece of advise to a team of investors, what would it be?
Whilst I am now the CEO of Tobacco Free Portfolios, the not-for-profit organisation I founded, I am also the Project Manager for the Global Task Force on Tobacco Free Portfolios established to encourage tobacco free investment across the globe, therefore I am very much engaged in the global agenda, from both a health and finance perspective.
My one piece of advice to a team of investors would be to implement a tobacco free mandate for all investments. Tobacco stands alone to any other product or resource, if a product was produced tomorrow that had the devastating impact of tobacco – six million deaths per year - it would not be tolerated. Every investment decision, no matter how small, contributes to this positive, and important movement.
4. If we look beyond tobacco, what next big issue do you see entering the forefront of the ESG / responsible investment agenda?
I see the next big issue that should be addressed is the concept of fiduciary duties. A re-framing of these duties to make responsible, long-term decision-making to the benefit of society paramount is essential to all issues considered under the ESG and mainstream agendas.
5. Why should investors attend the "The emerging ESG issues" session at PRI in Person?
I have found the people that work in ESG and RI to be passionate, dedicated and hard working. It always helps to see and listen to people to really understand what they are championing and why it matters. I certainly hope people come to listen to me as I’ve come a long way to speak!
[1] Graen, L. (2015, January 27). BMJ Group blogs. Retrieved August 30, 2015, from http://blogs.bmj.com/tc/2015/01/27/tobacco-industry-confronted-with-child-labour/?q=w_tc_blog_sidetab