Swiss National Bank Reportedly Sells Entire Chevron (CVX.US) Stake Over Environmental Concerns

The Swiss National Bank has sold its entire holding in oil producer Chevron (CVX.US), as the investment was deemed to violate the bank’s portfolio guidelines, according to informed sources.

While the central bank has not fully exited investments in drilling companies, Chevron was singled out due to environmental issues that are not attributed to its competitors. In an emailed statement, the Swiss National Bank stated it “has not adjusted its investment policy” and continues to follow existing guidelines.

With CHF 703 billion (USD 850 billion) in foreign exchange reserves—accumulated over the years through currency purchases to curb the strength of the Swiss franc—the bank holds a quarter of its assets in equities. Some of these holdings are in the United States and subject to U.S. securities disclosure regulations. The Swiss National Bank disclosed in its most recent filing this month that it had divested USD 712 million worth of Chevron shares.

It retains positions in other oil producers, including ExxonMobil (XOM.US) and ConocoPhillips (COP.US). Over the years, activists have urged the bank to divest from companies contributing to climate change. The Swiss National Bank’s investment policy excludes companies that “systematically cause severe environmental damage,” as well as firms involved in internationally condemned weapons production, coal mining, and systemically relevant banks.