Germany: Deutsche Bank raided in ′greenwashing′ probe

Prosecutors in Frankfurt raided the places of work of each Deutsche Bank and its asset administration subsidiary DWS on Tuesday as a part of an investigation into so-called “greenwashing.”

The searches associated to allegations of monetary establishments advertising funding merchandise as extra environmentally pleasant than they actually have been.

What are the investigators trying into?

In an announcement, Frankfurt prosecutors mentioned investigators have been finishing up raids “on suspicion of investment fraud.”

Accusations of greenwashing towards DWS have circulated for months, amid allegations that asset managers had overstated DWS’s sustainability credentials on points corresponding to environmental safety and local weather change.

Prosecutors say investigators have already discovered “sufficient indications” that ESG (environmental, social and governance) requirements have been utilized solely “in a minority of investments.” 

This, the prosecutors mentioned, was opposite to info in DWS’s “sales prospectus.” There have been no named suspects.

ESG merchandise are an more and more necessary asset class as monetary establishments goal to trim portfolios in line with international local weather targets. 

The prosecutors mentioned it was following accusations primarily based on “statements made by a former DWS employee.” The particular person was mentioned to have turn into a whistleblower for US securities regulators in 2021.

What do the companies say?

Deutsche Bank confirmed that searches had taken place in relation to “greenwashing accusations” at DWS. The financial institution mentioned in an announcement that it could “work together with all relevant regulators and authorities.”

It mentioned that “the measures taken by the public prosecutor’s office are directed against unknown persons in connection with greenwashing allegations made against DWS.”

A spokesperson for DWS mentioned it was “continuously and comprehensively” cooperating with the authorities.

Deutsche Bank final month confronted rising scrutiny after raids on the financial institution’s places of work to analyze cash laundering. The probe in query was reported to be right into a transaction linked to the household of Syrian chief Bashar Assad.

The financial institution has confronted a string of scandals and lawsuits in current years, maybe most famously pertaining to its US mortgage transactions main as much as the 2008 monetary crash. The firm has additionally confronted authorized controversies relating to cash laundering in Russia, rate of interest manipulation, violating the US-Iran embargo, its industrial ties to convicted intercourse offender Jeffrey Epstein and its function in the Dankse Bank cash laundering scandal, amongst others.

rc/msh (AFP, Reuters, dpa)

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