ESG Enforcement Tracker

Key facts:

The Frankfurt Public Prosecutor’s Office has fined Deutsche Bank’s asset manager, DWS, €25 million following an ESG investigation.

The three-year investigation was launched following DWS’s misrepresentation of the fund’s green credentials in its marketing materials. A DWS whistleblower, Desiree Fixler, alleged that DWS had made misleading statements in its 2020 annual report relating to its ESG assets through overstating its ESG credentials. Fixler, DWS’s former head of sustainability, objected to DWS’s annual report, which stated the asset manager “placed ESG at the heart of everything we do”. Similarly, the DWS had claimed to be an “ESG leader”.

The prosecution noted, in concluding the investigation, that “statements in external relations must not go beyond what can actually be implemented.” The fine was calculated based on the revenue generated by Deutsche Bank, and DWS’s past ESG-related deficiencies.

In accepting the fine, DWS commented: “In recent years, we have already publicly acknowledged that in the past our marketing was sometimes exuberant. We have already improved our internal documentation and control processes, and we continue to do so. We have cooperated fully throughout the entire investigation.”