Local Government Pension Scheme Tobacco Industry Investments – Opportunities for Divestment

This paper explores the policy and legal background to the contested issue of tobacco investments by local authority pension funds, taking into account legal opinion and commentary, case law, public policy and new research (in preparation for publication) by the authors examining pension committee reports. In addition it examines the potential impact of the Framework Convention on Tobacco Control on the long-term prospects of tobacco company investments, and how this has been considered in jurisdictions outside the UK when addressing the divestment issue. The paper concludes with policy options for consideration together with an appendix that considers some of the commonly raised barriers to divestment. A late addendum to this paper is included in response to a legal opinion that was issued around the time this paper was being finalised.