French insurer AXA plans to stop investing in the tobacco industry, citing the impact of smoking on public health, and has said it plans to sell its €1.8 billion ($2.02 billion) of assets in the sector.

AXA said it would divest its €200 million of equity holdings in tobacco companies immediately. It also plans to stop all new investments in tobacco industry corporate bonds and run off its existing holdings worth about €1.6 billion.

“With this divestment from tobacco, we are doing our share to support the efforts of governments around the world,” incoming AXA chief executive Thomas Buberl said in a statement.

“This decision has a cost for us, but the case for divestment is clear: the human cost of tobacco is tragic; its economic cost is huge.”

Reuters