German Police Raid Deutsche Bank Over Greenwashing Lies
German police on Tuesday raided Deutsche Bank headquarters and the offices of asset manager DWS—which is 80% owned by Deutsche Bank—as part of an investigation into whether the firms have presented investments and products as more climate-friendly than they really are, a notorious practice known as "greenwashing."
The Frankfurt public prosecutors' office said in a statement that the raid—which reportedly involved around 50 law enforcement officials—was "triggered by reports in the international and national media that the asset manager DWS, when marketing so-called 'green financial products,' had sold these financial products as 'greener' or 'more sustainable' than they actually were."
"After examination, sufficient factual evidence has emerged that, contrary to the statements made in the sales prospectuses of DWS funds, [environmental, social, and governance factors] were not taken into account at all in a large number of investments," the statement continued.
DWS said in response to the raid that it is cooperating with authorities and regulators.
While Deutsche Bank and DWS have both committed to achieving net-zero emissions by 2050, both have been accused of misleading clients about the sustainability of their business practices.