Swiss National Bank offloads shares in Chevron Corporation
The Swiss National Bank (SNB), one of the world's largest investors in equities, continues to hold a significant stake in oil giant Exxon Mobil, as revealed in Q1 2025, with a value of $1.4 billion. This information was first reported in the Swiss newspaper Neue Zürcher Zeitung.
However, the SNB's stance on divesting from fossil fuels, including US oil companies, remains unclear and cautious. The bank's approach to fossil fuel divestment has been described as "confused," with the SNB often avoiding direct comments on the issue.
The SNB ensures that its investments are as broadly diversified as possible and pursues a market-neutral, passive investment approach with its equity investments. Yet, there is no specific information available regarding its stance on US oil companies.
The bank's holdings may have changed in response to growing political pressures on central banks to divest from fossil fuels. In Q4 2024, the SNB held around $0.7 billion in Chevron, but according to its latest filings for Q1 2025, the SNB no longer holds a stake in the US oil firm.
Central banks, including the SNB and the European Central Bank (ECB), face growing public pressure to consider their fossil fuel exposure. A recent report by campaign groups Reclaim Finance and Urgewald shows that the ECB has added nine fossil fuel companies to its guarantees system, allowing companies like Total, BP, and Eni, among others, easier access to loans through its system.
The SNB also refrains from investing in stocks of systemically important banks worldwide due to its special role as a central bank. It files quarterly 13F reports of its holdings with the US financial markets regulator, the SEC.
The SNB acts as the central bank and fulfils a macroprudential role in Swiss financial markets. In order to manage appreciation pressures on its currency, the SNB sells foreign exchange and invests in highly liquid assets such as US equities. The bank's balance sheet of several hundred billion Swiss francs is largely due to growing investor demand for the franc as a presumed safe-haven asset.
A 2024 paper by the London School of Economics highlighted the potential role of central banks in managing the net-zero alignment of sovereign bond markets. As the climate crisis continues to escalate, the question of central banks' responsibilities in addressing climate change becomes increasingly important.
The SNB does not invest in stocks or bonds of companies whose products or production processes significantly violate broadly accepted societal values. Yet, the bank's continued investments in fossil fuel companies raise questions about its commitment to sustainability and its role in combating climate change.
Central banks, including the SNB, will likely continue to face scrutiny and pressure as they navigate the complexities of balancing financial stability with environmental and social responsibility.
- Despite the SNB's stated intention to diversify its investments, its continued holdings in oil giants like Exxon Mobil, as well as its past investments in Chevron, demonstrate a significant stake in the oil-and-gas industry.
- The politically charged issue of fossil fuel divestment has left the SNB's position on US oil companies unclear, with the bank often avoiding direct comments on the matter.
- As central banks worldwide, including the SNB, face growing pressure to address their fossil fuel exposure, the bank's investments in firms like Exxon Mobil and potentially future US oil companies could raise questions about its commitment to sustainability and combating climate change.
