Swiss central bank invests in controversial companies

The SNB has ethical investing guidelines Keystone / Peter Klaunzer

The Swiss National Bank (SNB) is investing money in nine companies that are facing sharp international criticism for their military cooperation with Israel. At the same time, the SNB emphasises ethical principles. How does this fit together?

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Caterpillar is one of the nine companies. The US company’s bulldozers are “nuclear weapons” of the Israeli military, which have been “used in almost all military activities since 2000,” Francesca Albanese, the UN Special Rapporteur for the Palestinian Territories, wrote in a report. 

+ Major Swiss banks invest in weapons manufacturers

Research by Swiss public broadcaster SRF shows that, as of mid-2025, the SNB owns shares in Caterpillar, as well as in other defence and technology companies that Albanese has sharply criticised. The report states that companies like Caterpillar, Elbit Systems, and Leonardo are partly responsible for human rights violations due to their collaboration with Israel.

The UN Special Rapporteur is repeatedly criticised for her harsh words, but she is not the only one to condemn business activities related to Gaza. 

Large investors, particularly from Scandinavia, but also from Britain and the Netherlands, have sold their shares in various companies, such as Caterpillar and Elbit Systems.

“There is no doubt that the products are used for extensive and systematic violations of international humanitarian law,” wrote the Norwegian central bank when it sold its shares in Caterpillar at the end of August.

SNB’s ethical rules

The SNB is committed to various principles. It must ensure that monetary policy retains necessary scope for action at all times.

In addition, it also aims to uphold fundamental principles, as it prominently states on its website. For example, the central bank “does not acquire securities from companies that massively violate fundamental human rights.”

Recently, criticism of Israel’s actions in Gaza has continued to grow. Various Western states have accused the Israeli leadership of a “completely disproportionate escalation” and of denying humanitarian aid. According to media reports citing Israeli intelligence data, over 80% of the deaths in Gaza are civilians.

Various organisations classify Israel’s actions as genocide. The International Criminal Court is investigating Israeli Prime Minister Benjamin Netanyahu, among others, for war crimes.

For Marc Chesney, professor emeritus of financial mathematics, the SNB’s responsibility is crystal clear. As soon as investments in companies promote human rights violations, they must be stopped, says Chesney.

The banking professor has been calling for a more sustainable investment strategy from the SNB for years. Not all monetary policy experts share his view. Some warn that the SNB is not a political authority. Political guidelines are necessary for non-economic goals.

SRF confronted the SNB with criticism of its investments. The SNB did not comment on the details, but referred generally to its sustainability report and its mandated goal of price stability.

Adapted from German by DeepL/mga

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