By John Revill
BERN (Reuters) -Environmentalists protested at the Swiss National Bank’s annual shareholder meeting on Friday, urging the central bank to divest from companies they say contribute to environmental devastation in regions like the Amazon rainforest and Cerrado savanna.
The protest in Bern targeted the SNB’s holdings in firms identified in a University College London (UCL) study as ‘Environmental Tipping Point’ companies — corporations whose activities they say trigger irreversible ecological damage.
Campaigners stood outside the meeting with a banner reading “Deforestation is not a Swiss value” and placards showing an image of SNB Chairman Martin Schlegel mocked up with a speech bubble saying “burn baby burn.”
Activists demanded stricter exclusion criteria for the SNB’s investments and for the central bank to use its position as a shareholder to influence companies’ behaviour.
If they do not comply with the SNB’s guidelines not to purchase securities in firms that systematically cause severe environmental damage, the central bank should divest, they said.
In response, Schlegel said the SNB follows strict exclusion policies in its investments, avoiding companies that violate human rights or cause significant environmental harm.
But he said the central bank did not have a mandate to tackle climate change or risks to biodiversity.
“The SNB does not set itself any climate targets for its currency reserves,” he told shareholders. “The reason lies in our clearly defined and narrow legal mandate, which is focused on price stability.”
Expanding the SNB’s role could endanger its independence, he added.
But Asti Roesle of the campaign group Climate Alliance Switzerland pointed to the already visible impacts of climate change in the country, including melting glaciers and extreme weather that have caused landslides and economic damage.
“If the SNB ignores climate and environmental risks in its monetary decisions, it is acting shortsightedly and neglecting its duty to protect future generations,” she said.
Roesle, who spoke at the meeting, said the SNB could wield significant influence due to its sizable equity investments — about 25% of its 756 billion Swiss francs ($914 billion) in foreign reserves are held in global stocks.
Despite its stance that it adheres to strict guidelines on investments, the SNB’s critics say it is still invested in companies that damaged the environment.
“The SNB does not respect its own rules,” said Guillaume Durin from the Swiss climate group BreakFree, “As a passive investor, the SNB becomes complicit in the degradation of ecosystems critical to the planet’s balance.”
($1 = 0.8275 Swiss francs)
(Reporting by John Revill, Editing by William Maclean and Joe Bavier)
