Post by account_disabled on Feb 26, 2024 23:58:12 GMT -6
The example of this bank, raided over accusations of greenwashing , shows that regulators and policymakers are committed to clamping down on companies that make exaggerated or false claims about sustainability issues. Is this a warning against deceptive investment practices? Apparently yes, and he is serious.
Recently, the US Securities and Exchange Commission (SEC) announced a million-dollar fine against BNY Mellon Investment Adviser for possible greenwashing practices . But apparently it is not the only case, something similar has happened in Germany.
Bank raided over greenwashing allegations
On the hunt against greenwashing
According to the Bloomberg portal , security Chinese American Phone Number List personnel entered the buildings, as well as the nearby facilities of the asset management division of DWS Investments, belonging to the largest German lender: Deutsche Bank. The reason? Greenwashing accusations against resource manager.
DWS has faced regulatory investigations in the US and Germany after its former chief sustainability officer, Desiree Fixler, alleged the company inflated ESG credentials.
Fixler noted that claims that hundreds of billions of assets under management were “ESG-embedded” were misleading, because the label did not translate into meaningful action by relevant fund managers. Although DWS has stopped using this category, it has been in the crosshairs of the authorities.
Thus, since January of this year, the Frankfurt prosecutor's office began an exhaustive investigation triggered by reports about the executive's claims. Since then, sufficient evidence has been found that “contrary to the statements in the sales prospectuses of the DWS funds, ESG factors actually only played a role in a minority of the investments.”
Bank raided over greenwashing allegations
The investigations did not end there, the highest echelon of Deutsche Bank has also been involved in the matter of greenwashing. Investigating regulators have asked the lender about the role of deputy CEO Karl von Rohr as the primary recipient of Fixler's email, where she first raised her ESG concerns.
According to people familiar with the matter, shortly after firing her, von Rohr organized an external audit that cleared up the claims about DWS, which Flixer had highlighted.
In this regard, Fixler has welcomed the investigation by the German police, after having been fired in March 2021, on the grounds that the personnel of her unit had not made enough progress.
I am pleased to see that this research is being deepened for more evidence.
Desiree Fixler, former director of sustainability at DWS.
For their part, DWS and Deutsche Bank said they have cooperated with regulators and authorities in the past and would continue to do so. DWS has repeatedly denied accusations that it misled investors.
Greenwashing waters!
For Deutsche Bank CEO Christian Sewing, the bank raided over greenwashing allegations is a clear, high-profile example of lenders that will face legal consequences for greenwashing.
Although Sewing has long sought to shake off heavy fines from Deutsche Bank and repair relations with regulators, a host of new problems have emerged since he took over four years ago.
Recently, the US Securities and Exchange Commission (SEC) announced a million-dollar fine against BNY Mellon Investment Adviser for possible greenwashing practices . But apparently it is not the only case, something similar has happened in Germany.
Bank raided over greenwashing allegations
On the hunt against greenwashing
According to the Bloomberg portal , security Chinese American Phone Number List personnel entered the buildings, as well as the nearby facilities of the asset management division of DWS Investments, belonging to the largest German lender: Deutsche Bank. The reason? Greenwashing accusations against resource manager.
DWS has faced regulatory investigations in the US and Germany after its former chief sustainability officer, Desiree Fixler, alleged the company inflated ESG credentials.
Fixler noted that claims that hundreds of billions of assets under management were “ESG-embedded” were misleading, because the label did not translate into meaningful action by relevant fund managers. Although DWS has stopped using this category, it has been in the crosshairs of the authorities.
Thus, since January of this year, the Frankfurt prosecutor's office began an exhaustive investigation triggered by reports about the executive's claims. Since then, sufficient evidence has been found that “contrary to the statements in the sales prospectuses of the DWS funds, ESG factors actually only played a role in a minority of the investments.”
Bank raided over greenwashing allegations
The investigations did not end there, the highest echelon of Deutsche Bank has also been involved in the matter of greenwashing. Investigating regulators have asked the lender about the role of deputy CEO Karl von Rohr as the primary recipient of Fixler's email, where she first raised her ESG concerns.
According to people familiar with the matter, shortly after firing her, von Rohr organized an external audit that cleared up the claims about DWS, which Flixer had highlighted.
In this regard, Fixler has welcomed the investigation by the German police, after having been fired in March 2021, on the grounds that the personnel of her unit had not made enough progress.
I am pleased to see that this research is being deepened for more evidence.
Desiree Fixler, former director of sustainability at DWS.
For their part, DWS and Deutsche Bank said they have cooperated with regulators and authorities in the past and would continue to do so. DWS has repeatedly denied accusations that it misled investors.
Greenwashing waters!
For Deutsche Bank CEO Christian Sewing, the bank raided over greenwashing allegations is a clear, high-profile example of lenders that will face legal consequences for greenwashing.
Although Sewing has long sought to shake off heavy fines from Deutsche Bank and repair relations with regulators, a host of new problems have emerged since he took over four years ago.