Swiss National Bank unloads shares in Chevron Corporation
The Swiss National Bank (SNB) and the European Central Bank (ECB) have faced growing public pressure regarding their exposure to fossil fuels, but their divestment policies remain unclear.
The SNB, as the central bank of Switzerland, plays a crucial role in the country's financial markets. It files quarterly 13F reports with the US financial markets regulator, the SEC, detailing its holdings. However, the bank's spokesperson has declined to comment on individual stock-picking decisions, maintaining a cautious stance on the matter.
The information about the SNB's holdings, including a $1.4bn stake in Exxon as of Q1 2025, was first reported in the Swiss newspaper Neue Zürcher Zeitung. The bank pursues a market-neutral, passive investment approach, ensuring its investments are as broadly diversified as possible.
The SNB's investment policy is obliged to take into account the fundamental norms and values of Switzerland. Yet, the bank has resisted clear positioning and concrete commitments on fossil fuel divestment, maintaining a "confused" stance on the issue.
Regarding the ECB, no clear information on its fossil fuel divestment policies could be found.
Jean-Pierre Danthine, former SNB Vice-President, has suggested that divestment strategies alone are generally ineffective in producing real-world environmental impact. He advocates for collective shareholder engagement and influence on corporate strategies as a more viable route.
Recent studies, such as a 2024 paper by the London School of Economics, highlight the potential role of central banks in managing the net-zero alignment of sovereign bond markets. However, no major central banks like the SNB or ECB have adopted strong fossil fuel divestment policies akin to private banks’ net-zero alliances or similar divestment initiatives.
Here's a summary of the current status of fossil fuel divestment policies for the two central banks:
| Central Bank | Fossil Fuel Divestment Policy Status | |----------------------|---------------------------------------------------------------| | Swiss National Bank | Confused approach; has avoided public commitment to divestment| | European Central Bank | No clear information on fossil fuel divestment policies found|
Private banks have demonstrated varying commitments to climate action, with some retreating from net-zero alliances under political and market pressures. Central banks, on the other hand, seem more cautious or ambiguous about direct fossil fuel divestment mandates.
The SNB's decision to sell its stake in Chevron may be due to growing political pressures on central banks to divest from fossil fuels. However, the bank no longer holds a stake in Chevron, as per its latest filings for Q1 2025.
The SNB's balance sheet is several hundred billion Swiss francs, largely due to growing investor demand for the franc. As one of the largest investors in equities globally, the bank's stance on fossil fuel divestment is of significant interest.
For more concrete policy actions on climate, further specialized sources or official central bank communications may be necessary.
The Swiss National Bank, with a massive balance sheet and significant influence in financial markets, has shown a reluctance to commit to clear fossil fuel divestment, maintaining a "confused" stance while still holding stakes in companies like Exxon. The European Central Bank's fossil fuel divestment policies remain unclear, and no credible information could be found regarding them. Despite rising public pressure, the business world and energy sector, particularly oil-and-gas industry, continue to have a presence in the investment portfolios of these central banks.
