Tobacco producer excluded from the Government Pension Fund Global

The Ministry of Finance has excluded the Mexican company Grupo Carso SAB de CV from the investment universe of the Government Pension Fund Global on account of its tobacco production.

The decision is based on a recommendation from the Council on Ethics for the Fund.

According to the guidelines for observation and exclusion of companies from the Pension Fund Global, Section 2 (1) b), “The assets in the Fund shall not be invested in companies which themselves or through entities they control: […] produce tobacco”.  The Council has assessed Grupo Carso and the company has made it clear that it owns 69.94 percent of the company Compañia Mercantil de Productos de Tabaco S.A de CV, which produces tobacco products. The company has also stated to the Council that it owns 20 percent of Philip Morris S.A de CV, which produces cigarettes. Against this background, the Council has recommended that Grupo Carso be excluded from the Fund’s investment universe.

The Ministry of Finance has excluded Grupo Carso based on a recommendation from the Council on Ethics. In accordance with the guidelines, the decision to exclude is made public once the shares are sold.

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Read more:

• The recommendation from the Council on Ethics
• The Council on Ethics for the Government Pension Fund Global
• A list of all the companies that have been excluded from the Fund’s investment universe