AMP Capital has said it will not invest in tobacco, cluster munitions, landmines, and biological and chemical weapons in the future, and will divest any current interests.

Approximately A$440 million (US$338 million) of tobacco manufacturing-related equity and fixed income holdings will be divested from AMP Capital’s portfolio. This is the largest divestment of tobacco securities to date in Australia.

Approximately A$130 million (US$100 million) is invested in manufacturers of cluster munitions and landmines, and will also be divested.

Currently, AMP does not invest in any companies with exposure to biological and chemical weapons, but such investments are excluded going forward.

AMP says that the decision is part of the introduction of a new investment decision-making framework, which will form part of the company's already existing Environmental, Social and Governance policies. No other sectors are being considered for exclusion.

Adam Tindall, CEO AMP Capital comments, “We are not prepared to deliver investment returns to customers at any cost to society. We engaged with recognized experts in the field of business ethics to develop the framework, including Dr Simon Longstaff from The Ethics Centre.”