Robeco has joined BNP Paribas Asset Management (BNPP AM) in excluding investments into the tobacco industry from its mutual fund range.
The exclusion will apply to all of the firm's mainstream funds, including sub-advised funds but it will not extend to client-specific funds and mandates.
The firm said the process, which already applies to its sustainable fund range, would be completed by the end of Q3 this year.
Peter Ferket, head of investments at Robeco, said: "Robeco has been at the forefront of sustainable investing since the 1990s and sees sustainability as the long-term force for change in markets, countries and companies.
"Given the significant international concerns about the risks posed by tobacco and in view of recent developments, such as the UN Global Compact's decision, we think the time is ripe for excluding tobacco."
In 2017, the UN Global Compact, which helps to align businesses with with ten principles on human rights, labour, environment and anti-corruption, excluded tobacco companies from participating in the initiative.
BNPP AM also announced plans earlier this week to phase out tobacco investments from its entire active range of funds as the group further commits to responsible investing.
The removal of tobacco stocks, which already applies to the BNP AM's sustainable range, will join the existing exclusions of controversial weapons and asbestos.
The process of exclusion will be phased in gradually completing by the end of the year, which will provide clients with time to seek alternative investment arrangements.
Last November, BNP Paribas decided to halt financing and investment activities related to tobacco companies.
Frederic Janbon, CEO of BNPP AM, said: "We recognise the important role that long-term capital plays in tackling major global issues and with an increasing number of asset owners, insurers and pension funds excluding tobacco from their investments, we are taking into account growing international concerns about the risks posed by tobacco.
"Our commitment to long-term investing remains resolute and we will continue to represent the interests of our clients to the management teams of the companies in which we invest, to engage with them on the issues relevant to our investment cases and to uphold our active commitment to a more responsible economy."
On Monday, BlackRock announced it was looking at ways of offering investment funds that exclude gun stocks following the fatal school shooting in Florida last month.
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