Deutsche Bank’s asset management arm, DWS, has been fined €25 million (approximately USD $27 million) by German authorities for misleading investors about its sustainable investing practices. The fine concludes a multi-year greenwashing investigation led by the Frankfurt public prosecutor’s office.
The probe, which began in 2021 following whistleblower allegations from former sustainability chief Desiree Fixler, found that DWS exaggerated its environmental, social, and governance (ESG) credentials in public communications and annual reports. Investigators concluded that the firm’s claims of being an ESG “leader” or asserting that ESG was “an integral part of our DNA” overstated its capabilities during an ongoing internal transformation.
“Statements in external relations must not go beyond what can actually be implemented,” the prosecutor’s office said.
In response, DWS acknowledged past shortcomings, stating it had been “exuberant” in its marketing and has since strengthened its internal documentation and controls.
The case drew international scrutiny, including a raid of DWS and Deutsche Bank’s Frankfurt offices in May 2022. The fallout led to the resignation of then-CEO Asoka Woehrmann. In a parallel U.S. investigation, DWS also agreed to pay a $19 million fine in 2023 to settle similar greenwashing charges with the SEC—the largest such penalty imposed by the agency to date.
