The Cancer Council of New South Wales and the University of Newcastle will jointly lobby superannuation funds on their share holdings in tobacco companies.
The decision follows research from the two groups that showed that the majority of members from superannuation funds believed it was unethical to invest in tobacco companies even though many funds hold direct shares in such companies.
"Super funds need to realise that as an industry, tobacco has nothing going for it. Funds have barely considered the issue, treating investment in tobacco companies just like any of their other shareholdings, despite the fact their members are strongly opposed," University of Newcastle Associate Professor Raoul Walsh said.
Walsh said that both the university and Cancer Council of NSW will be lobbying super funds to assess their holdings in tobacco companies.
The two groups will also plan an education campaign to inform members of the public about superannuation investments in these companies.
The results were based on a survey of 107 of the largest superannuation funds. The research found that almost 63 per cent of members preferred that their funds did not invest in the tobacco industry, even if the investment was profitable.
Yet one-third of funds surveyed confirmed they held tobacco shares, while 58 per cent failed to comment or know the answer.
Trustees of funds must look at how social issues impact the bottom line of the companies they invest in, according to the Association of Superannuation Funds of Australia (ASFA) chief executive Pauline Vamos.
"We encourage active share ownership. If members are concerned about tobacco companies then we encourage them to write to their super funds. Already some funds have an ethical investment option," Vamos said.
