Asset manager DWS, a subsidiary of Deutsche Bank, is under investigation by German authorities for greenwashing. Its CEO, Asoka Woehrmann, announced his resignation the day after searches of the Frankfurt offices. ...“Upon review, sufficient factual evidence has emerged that, contrary to statements made in the sales prospectuses of DWS funds, ESG factors (…) have not been taken into account at all in a large number of investments.”
Asset manager DWS, a subsidiary of Deutsche Bank, is under investigation by German authorities for greenwashing. Its CEO, Asoka Woehrmann, announced his resignation the day after searches of the Frankfurt offices. ...“Upon review, sufficient factual evidence has emerged that, contrary to statements made in the sales prospectuses of DWS funds, ESG factors (…) have not been taken into account at all in a large number of investments.”
Asset manager DWS, a subsidiary of Deutsche Bank, is under investigation by German authorities for greenwashing. Its CEO, Asoka Woehrmann, announced his resignation the day after searches of the Frankfurt offices.
The asset manager DWS Group has just announced, on June 1 , that its CEO Asoka Woehrmann has resigned, “in agreement with the company”. A decision that follows recent allegations of greenwashing against DWS.
On May 31, the Frankfurt offices of Deutsche Bank AG and DWS, its asset management subsidiary, were raided by German authorities in connection with allegations of greenwashing at the asset manager. The operation had mobilized around fifty investigators from the Frankfurt Public Prosecutor's Office, accompanied by the BaFin …
... more [truncated due to possible copyright]Asset manager DWS, a subsidiary of Deutsche Bank, is under investigation by German authorities for greenwashing. Its CEO, Asoka Woehrmann, announced his resignation the day after searches of the Frankfurt offices.
The asset manager DWS Group has just announced, on June 1 , that its CEO Asoka Woehrmann has resigned, “in agreement with the company”. A decision that follows recent allegations of greenwashing against DWS.
On May 31, the Frankfurt offices of Deutsche Bank AG and DWS, its asset management subsidiary, were raided by German authorities in connection with allegations of greenwashing at the asset manager. The operation had mobilized around fifty investigators from the Frankfurt Public Prosecutor's Office, accompanied by the BaFin (the German financial market authority, editor's note) and the Federal Criminal Police Office. Throughout the morning, these deniers conducted interviews with some of the staff.
For its part, Deutsche Bank immediately confirmed that research had been carried out. “The measures of the prosecutors are directed against unknown persons in the context of allegations of greenwashing against DWS”, explained a spokesperson for the German financial institution. "We have continuously cooperated fully with all relevant regulators and authorities on this matter and will continue to do so."
A similar survey in the United States
“The allegations made against DWS and myself over the past few months have become a burden on the company, as well as on my family and myself,” said Asoka Woehrmann. And he added: “In order to protect the institution and my loved ones, I want to pave the way for a new beginning.”
As a reminder, the BaFin had initiated an investigation into DWS relating to suspicions of greenswashing in August 2021. An investigation carried out in the wake of similar investigations launched a little earlier by the American financial regulator, the SEC (Securities & Exchange Commission) , after former DWS Global Head of Sustainability Desiree Fixler launched allegations.
The latter had indeed declared that the group's 2020 annual report would have been the subject of misleading declarations as to the fact that more than half of the approximately 900 billion dollars of assets under management were invested in accordance with ESG (environmental , social and governance).
A potential “prospectus fraud”
The Frankfurt Public Prosecutor's Office explained that the May 31 search was carried out on the basis of information relayed by the international and German press. “Upon review, sufficient factual evidence has emerged that, contrary to statements made in the sales prospectuses of DWS funds, ESG factors (…) have not been taken into account at all in a large number of investments,” he said. The investigations carried out against DWS therefore reveal a potential “prospectus fraud”.
Stefan Hoops is expected to succeed Asoka Woehrmann. Since 2018, he had been head of investment banking at Deutsche Bank. He joined the German lender in 2003 in the sale of fixed income securities. Moving into credit trading in 2008 in New York, he subsequently assumed various management roles within the Global Markets division, both in the United States and in Germany. His appointment as the new CEO of DWS remains subject to the approval of the regulatory authorities.
Asoka Woehrmann will remain in office until the next annual general meeting, which will be held on June 9.
Present in Luxembourg, DWS manages 928 billion euros in assets in Europe, the Americas and Asia.
Translation into English using Google Translate