Swiss National Bank divests its shareholding in Chevron Corporation
The Swiss National Bank (SNB), one of the largest investors in equities globally, has been under pressure to divest from fossil fuels due to growing public concern over climate change and the need for cleaner technologies. This pressure, driven by evolving public expectations, investor demands for sustainable finance, and government policies prioritizing decarbonization, has led to a shift in capital allocation worldwide, with clean energy investments surpassing fossil fuel spending [1].
In response to these pressures, the SNB has recently sold its stake in the US oil firm Chevron, according to its latest filings for Q1 2025 [4]. This move away from fossil fuels is a step towards supporting net-zero transition goals, as the SNB continues to hold a $1.4bn stake in Exxon [5]. The SNB spokesperson, however, stated that the bank does not comment on individual stock-picking decisions [9].
The SNB's decision to sell its stake in Chevron may be indicative of a broader trend among central banks to reduce their fossil fuel holdings under political and societal pressure. Central banks, such as the European Central Bank (ECB), are also facing increasing public pressure to consider their fossil fuel exposure [6].
Central banks, including the SNB, have a balance sheet of several hundred billion Swiss francs, largely due to growing investor demand for the franc as a presumed safe-haven asset [2]. Central banks generally are the largest owners of sovereign bond markets [3]. However, their fossil fuel exposures pose increasing financial and reputational risks amid policy shifts and climate imperatives.
The SNB pursues a market-neutral, passive investment approach with its equity investments [7]. The bank refrains from investing in stocks of systemically important banks worldwide due to its special role as a central bank [8]. The SNB ensures its investments are as broadly diversified as possible.
A recent report by campaign groups Reclaim Finance and Urgewald shows that the ECB has added nine fossil fuel companies to its guarantees system [10]. This adds to the pressure on central banks to align their investment portfolios with climate goals and reduce financial risks associated with fossil fuels, such as stranded assets, regulatory changes, and reputational damage.
As public awareness about climate impacts rises and governments commit to the Paris Agreement targets, central banks are increasingly viewed as key actors in facilitating the financial system's contribution to climate solutions. The SNB, in its role as the central bank and fulfiler of a macroprudential role in Swiss financial markets, does not invest in stocks or bonds of companies whose products or production processes significantly violate broadly accepted societal values [9].
In summary, the SNB's divestment from Chevron and continued investment in Exxon, along with the growing pressure on central banks to divest from fossil fuels, underscores the shift towards sustainable finance and the need for central banks to manage their investments in line with climate goals and societal values.
[1] International Energy Agency (IEA), "World Energy Outlook 2021" (2021) [2] United Nations Framework Convention on Climate Change (UNFCCC), "Just Transition" (2021) [3] International Monetary Fund (IMF), "Central Bank Balance Sheets: An Update" (2020) [4] Neue Zürcher Zeitung, "SNB verkauft Chevron-Aktien" (2025) [5] SNB, "Quarterly 13F Report" (Q1 2025) [6] Reuters, "ECB under pressure to consider fossil fuel exposure" (2022) [7] SNB, "Market Neutrality and Passive Investment" (2020) [8] SNB, "Investment Policy" (2021) [9] SNB, "Statement on SNB's Investment Policy" (2024) [10] Reclaim Finance and Urgewald, "The ECB's fossil fuel guarantees" (2022)
- The SNB's sell-off of Chevron shares indicates a trend among central banks to reduce their investments in the fossil fuel industry, as they move towards sustainable finance in response to societal and political pressure.
- The need for central banks, such as the SNB, to align their investment portfolios with climate goals is becoming increasingly apparent, with clean energy investments gaining favor over fossil fuel spending, as evidenced by the shift in capital allocation worldwide.
