Cancer Researchers in the UK Are Investing Their Pensions in the Tobacco Industry

A good way to quit smoking: start associating cigarettes with pension funds.
The Guardian has revealed that thousands of academics in the UK invested their pensions in the tobacco industry, including scientists funded by Cancer Research UK,
The fund for university staff, called the Universities Superannuation Scheme (USS), was worth around $55 billion last year. According to the fund’s latest annual report, it invested $235 million in British American Tobacco between March 2014 and March 2015.
BAT wasn’t the largest investment though, that honor goes to Royal Dutch Shell at $380 million.
Of course, some of the academics didn’t realize their money was being held in the death grip of cigarette companies. A scientists funded by CRUK told The Guardian she was shocked and disturbed by these revelations:
“All the work of this institute is done under the guidance of CRUK, and we are, quite rightly, regularly reviewed to ensure that CRUK money is being spent effectively and efficiently in the global fight against cancer. How can this possibly be in line with the fact that most of us will retire comfortably on money earned from tobacco investments?”
The Guardian also got comment from Universities UK, an advocacy group for vice-chancellors and principals, which defended USS’s investment choices, explaining that ethics are nice, but assets are even better. “USS, as part of its investment duties, takes into account wider social, ethical, and environmental and governance issues,” the UUK spokesperson said, “so long as that ensures that the assets of the scheme are invested in the best financial interests of members and their beneficiaries.”
The UUK spokesperson suggested that investing in tobacco companies can yield social benefits as well, namely, e-cigarettes. “USS is also a responsible and engaged investor,” said the spokesperson. “They have, for example, undertaken engagement with tobacco companies on marketing approaches and regulations around e-cigarettes.”
It case you were wondering, it’s not exactly easy to avoid having your pension stew in tobacco stocks. Fifteen years ago the tobacco industry was declining, investors fleeing on a global scale, but it’s turned around since. Now even California’s Public Employee’s Retirement System, which divested its pension fund from tobacco companies in 2000, is considering getting back on the carcinogenic gravy train.