Motivated by today’s go-green sensitive approaches, an alliance of non-governmental organisations (NGOs) alleges that the Swiss National Bank (SNB) invested roughly $9bn in 69 different oil and gas fracking companies. The coalition’s – known as the SNB Coalition and Climate Alliance Switzerland –report further states that fracking makes up more than half of SNB’s estimated $16bn in fossil fuel extraction.
Swiss National Bank getting backlash from NGOs over fracking investments
Fracking uses high-pressure liquids to extract subterranean fossil fuels. According to a recently published Yale paper, this process generates copious amounts of wastewater, emits greenhouse gases, and causes air and noise pollution. Consequently, it disturbs natural habitats and migratory patterns, while causing land degradation.
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Reportedly, SNB declined to comment when approached with these allegations and merely stated its investment policy adheres to accepted financial norms. Bloomberg indicated that fracking triggered an upsurge in the oil and gas industry in the United States, but the practice has been widely criticised worldwide, especially in parts of Europe, which includes Switzerland.
Additionally, the stated report claims that 14 of the 26 constituencies in Switzerland oppose fracking, making up an estimated 69% of the population. Plus, according to the report, these opposers own about 27% of the SNB shares.
This coalition feels that as fracking is rejected by such a high percentage and considering it destabilises land, SNB should change its investment channels in this regard. Bloomberg quoted the report as saying:
Due to the broadly supported rejection of fracking by cantonal governments and the population, it can be considered a norm and value of Switzerland, which the SNB should also respect.
