Deutsche Bank’s investment arm, DWS, has been fined €25m ($27m) for misrepresenting its sustainable investment strategies, as confirmed by the Frankfurt prosecutor’s office.
This fine resolves allegations that started back in August 2021, when DWS was accused by its former sustainability chief, Desiree Fixler, of overstating the extent of ESG integration in its investment processes in its annual reports, according to ESG Today.
The saga reached a critical point in May 2022 when the Frankfurt offices of DWS and Deutsche Bank were raided as part of the greenwashing investigation. The scrutiny intensified, leading to the resignation of DWS CEO Asoka Woehrmann the day after the raid. Further investigations by regulatory bodies, including a probe by the U.S. Securities and Exchange Commission (SEC), culminated in DWS agreeing to a $19m settlement in 2023. This marked the largest greenwashing penalty ever imposed on an asset manager by the SEC.
The Frankfurt prosecutor highlighted that DWS’s self-proclaimed leadership in ESG was not fully backed by its actual practices, as the firm was still in the midst of a transformation process. The prosecutor emphasized the importance of ensuring that public statements align with what is practically achievable.
Reacting to the conclusion of the investigation, DWS acknowledged the past overstatements in its marketing and noted significant improvements in its internal documentation and control processes. The firm also stated that the fine had been anticipated and provisions were made, ensuring that the financial penalty would not impact its Q1 2025 results.
Keep up with all the latest RegTech news here.
Copyright © 2025 RegTech Analyst
Copyright © 2018 RegTech Analyst
