Pella Funds Management has submitted a formal petition to the U.S. Securities and Exchange Commission (SEC), urging the introduction of mandatory disclosure requirements for tobacco-related revenues by publicly listed retailers.

The petition highlights both financial and ethical risks associated with tobacco sales. Despite structural declines in tobacco consumption and rising investor demand for values-aligned portfolios, most retailers do not disclose revenue from tobacco products—creating transparency gaps for investors.

Steven Glass, Managing Director & Investment Analyst, commented:
“Investors need clarity on tobacco exposure to assess both financial risk and portfolio alignment. Our petition aims to close a material disclosure gap that affects risk assessment and ethical investment mandates.”

The submission cites CVS Health’s experience removing tobacco from stores and notes that only one major retailer—Murphy USA—currently discloses tobacco revenue. Pella argues that consistent reporting would improve comparability and meet the needs of a growing cohort of ESG-focused investors.