The management company is suspected of having inflated the size of its investments that meet ESG (environmental, social and governance) criteria.
Le Monde with AFP
German justice has searched, Tuesday, May 31, the premises of Deutsche Bank and its DWS fund management subsidiary in Frankfurt in an investigation for “fraud” on investments “sold as” greener and sustainable “that ‘They were in reality, “said the city’s prosecutor’s office.
The searches “are linked to the accusations of” Greenwashing “which were brought against DWS”, the second European asset manager, who “reported in the past to collaborate with the authorities,” said a carrier Word of Deutsche Bank.
During its investigation, justice has “found clues” that “contrary to descriptions” in the prospectuses of DWS sustainable funds, “ESG criteria [environmental, social and governance] were not taken into account that for a minority of investments and were not considered for many financial investments, “explains the prosecution. ESG labeled investments have become a major asset class as global warming becomes an essential company.
The German procedure, which aims for employees of the bank and DWS for “investment fraud”, was launched following information published in the press and declarations of a whistleblower with the American authorities, specifies a press release.
The alert had been given by the former leader of sustainable development within DWS, Desiree Fixler, who accused the management company of having inflated the size of its investments meeting ESG.
An American federal survey is also underway. In many countries of the world, initiatives are multiplying to fight “greenwashing”, or ÉcoBlanching, ie exaggerated, even misleading promotion, by companies of their initiatives in terms of combating global warming.
In this context, the US SEC BOURSEAGE gendarme has unveiled an initiative to strengthen the transparency obligations of financial advisers and asset managers in terms of investments according to lasting criteria.