Lord Mayor Robert Doyle said that for the first time, the City of Melbourne's investment policy will be reviewed to prevent Council from directly investing in any banks or institutions that are aligned with tobacco companies.
"This is an opportunity for the City of Melbourne to take a stand against the tobacco industry and the huge impact it has on thousands of Australian lives," the Lord Mayor said.
"Each year tobacco causes an estimated 15,000 Australian deaths, and six million deaths worldwide."
"Through this commitment the City of Melbourne will influence local councils across Australia and put pressure on the banking sector to think about its social responsibilities."
The motion, brought to Council last night by Deputy Lord Mayor Arron Wood, was passed unanimously.
As part of its commitment, the City of Melbourne will also write and request the Trustees of Vision Super, which manages Council's default superannuation fund, to divest from all tobacco industries.
The City of Melbourne will also request future transactional banking tenderers confirm their exposure and support to the tobacco industry, which will be taken into consideration when deciding to award contracts.
The Deputy Lord Mayor said the policy change will help uphold one of Council's key priorities: to protect the community from the dangers of smoking.
"Over the last two years Council has expanded its policies regarding smoking and public health and this is another step in helping to keep Melburnians healthy," the Deputy Lord Mayor said.
"We have already increased the number of smoke-free areas across the municipality, from QV and Goldsbrough Lane to popular running tracks The Tan and Princess Park."
"We want to ensure everyone who lives, works or exercises within the City of Melbourne can do so without the associated harms of smoking."
The Lord Mayor will also write to the Premier of Victoria expressing Council's support for State Government legislation to formally ban political parties accepting donations from the tobacco industry and limit interactions with the tobacco industry.
For more information visit: http://www.melbourne.vic.gov.au