BNP Paribas Asset Management will exclude tobacco stocks from its entire active range as part of a commitment to responsible investing.
The removal of tobacco stocks, which already applies to the BNPP AM's sustainable range, will join the existing exclusions of controversial weapons and asbestos.
The decision was taken because of concerns about public health, with seven million people dying annually from tobacco-related causes.
Frederic Janbon, chief executive of BNPP AM, said: “BNP Paribas Asset Management is one of the first global asset managers to exclude tobacco from its mainstream investments, and as a leading player we are committed to being a responsible investor in all aspects of our business.
"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."
The process of exclusion will be phased in gradually by the end of the year, which will provide clients with time to seek alternative investment arrangements.
This follows the decision made last November for BNP Paribas to halt financing and investment activities related to tobacco companies.
Aj Somal, chartered financial planner for Birmingham-based Aurora Financial Planning, praised the move.
He said: "This is a positive move by BNPP AM, and it could potentially encourage more clients to opt for BNPP AM, particularly those who have shown a leaning towards ethical and socially responsible investing."
