German Prosecutors Fine DWS €25 Million for Greenwashing Claims
German prosecutors have penalised asset management giant DWS, a subsidiary of Deutsche Bank, with a €25 million ($27 million) fine for “greenwashing.”
The penalty stems from misleading advertising regarding the sustainability of some of its financial products.
Frankfurt prosecutors stated that DWS’s public claims, such as asserting leadership in ESG (environmental, social, and governance) and declaring ESG as integral to its core identity, did not accurately reflect the company’s practices.
DWS has accepted the fine, acknowledging that its past marketing efforts were “sometimes exuberant.”
The company has been under scrutiny since a senior executive raised “greenwashing” allegations several years ago. This controversy led to raids on DWS’s offices and the resignation of its CEO in 2022.
This German fine follows a $19 million penalty imposed by the US Securities and Exchange Commission in 2023 for similar misleading green statements.
In the German case, prosecutors found that DWS had presented itself as a market leader in environmentally friendly products, which was not yet the reality. They clarified that a “transformation process” was still in progress at the time of the claims.
The prosecutors emphasised that external communications must align with actual capabilities.
ESG products have become a significant area in finance as institutions increasingly aim to align their investments with global climate goals.
