New study: Tobacco Free Investments – Why banks should end their deadly relationship with Tobacco Companies

High returns from the tobacco industry have always attracted financial institutions, including banks, insurance companies, pension funds, and asset managers, who invest in and / or finance large amounts of tobacco related business; benefiting from the harmful business model of the tobacco industries. In this report, European financial institutions and their financial relations with the five largest publicly traded tobacco companies have been analysed. The results show a total of 24 European financial institutions since 2013 have lent around € 50 billion to the tobacco companies Philip Morris International, British American Tobacco, Altria, Japan Tobacco and Imperial Brands. Equities and bonds totalling approx. € 45 billion and equity holdings of approximately € 14 billion.

The supply of capital (loans, issuance of shares and bonds) thus accounts for over 86% of the financial relationships with tobacco companies. A value that clearly demonstrates the enormous supportive power as well as the responsibility of the financial service providers with regard to the damaging business models of the tobacco industry. The six German financial institutions examined in this report alone have granted loans to these five companies amounting to around € 8 billion, issued bonds and shares worth around € 7 billion, and hold shares of € 6 Billion.


Download the full study (PDF 1.5 MB, in German)