German asset manager DWS has been fined $27 million by prosecutors for “greenwashing,” or making false claims about its social and environmental investing.
The publicly held DWS, which is owned by Deutsche Bank, had asserted that it was a “leader” in ESG investing and that it was ingrained in its DNA.
The claims, however, “did not correspond to reality,” the office of the state prosecutor in Frankfurt said in a statement on Wednesday.
According to Reuters, a whistleblower’s claims sparked regulatory scrutiny in the US and Europe, which prompted the start of the DWS investigation in 2021.
“We are pleased that the Frankfurt Public Prosecutor’s office has concluded its investigation into DWS,” DWS said in a statement.
Due to previous deficiencies in specific ESG-related documentation and control processes, procedures, and marketing statements, the Frankfurt Public Prosecutor’s Office has found a negligent infringement and fined DWS.
“We agree to pay the fine imposed by the Office of the Frankfurt Public Prosecutor. We have already admitted in public in recent years that our marketing was occasionally overly enthusiastic in the past,” DWS said in the statement.
