Greenwashing fine for asset manager DWS “warning to the entire financial sector” – opinion
Süddeutsche Zeitung / Reuters
The 25-million-euro greenwashing fine for Deutsche Bank-owned asset manager DWS is a clear sign that deception regarding sustainable funds will be penalised, wrote journalist Meike Schreiber in a commentary in Süddeutsche Zeitung (SZ). Sustainable investing may be “no longer quite as fashionable as it was five years ago” but “the entire financial sector should take this fine as a warning”, she wrote.
German prosecutors fined DWS 25 million euros after a lengthy probe found the firm guilty of greenwashing, or making misleading statements about its credentials regarding the ESG (environmental, social, governance) criteria for sustainable investments, reported Reuters. Statements by DWS that it was a “leader” in ESG investing, and that this was an integral part of its corporate identity, did not correspond to reality, the Frankfurt state prosecutors said. The penalty came after US authorities in 2023 imposed a fine of 25 million dollars to settle charges over misstatements linked to ESG investing, and for failures in policies designed to prevent money laundering.
Greening global financial sectors is key to reaching climate targets and sustainable investments are a crucial part of this endeavour. However, greenwashing cases, such as misleading ESG claims, continue to present a hurdle. Other sectors also struggle to deal with false claims, for example surrounding “climate neutral” products.
