A Clean Slate: Investigation into Greenwashing Allegations against Former DWS CEO Dropped
Probe on Accusations of "Greenwashing" against Previous DWS Chief Halted
In a surprising move, the Frankfurt Public Prosecutor's Office has called off the probe into the "greenwashing" allegations against ex-CEO of asset manager DWS, Asoka Wöhrmann. A representative from the Public Prosecutor's Office communicated this development to news agency AFP on a Tuesday, citing reasons such as Wöhrmann's unblemished criminal record, swift exit from DWS, and, crucially, his removal from capital market activities.
Wöhrmann's dedication to the ESG (Environment, Social, and Governance) strategy while at the helm of DWS was evident, but even with his enthusiastic efforts, internal clashes within the company clouded the implementation process. The spokesperson clarified that the former CEO's individual contribution to the lack of ESG implementation couldn't be solely pinned on him, shedding light on the complexities surrounding this matter.
The Public Prosecutor's Office had levied a €25 million fine on DWS approximately two months prior, following claims that the firm had been deceiving the market by presenting itself as the market leader in sustainable financial products for years. Their statements, however, bore no resemblance to reality. DWS actively advertised financial products with specific ecological and social features from mid-2020 to the end of January 2023, boasting about their leadership in sustainable financial products, a claim which the Public Prosecutor's Office deemed inaccurate.
The citizen movement "Finanzwende" voiced its discontent with this decision, stating that letting Wöhrmann off the hook undermines accountability for consumer deception and empty green promises. They emphasized that until those responsible for such practices bear personal consequences, the culture of responsibility within the financial sector remains unchanged.
Some critics argue that the decision to terminate the criminal case against Wöhrmann raises questions about the accountability of major asset managers' top executives in the face of greenwashing allegations. Since the issues extend to a sizeable €20 billion fund, they question whether the actions of individual executives genuinely warrant the magnitude of their involvement. Critics also challenge the effectiveness of prosecuting complex ESG-related cases, fearing that such decisions may curtail deterrence against greenwashing within the financial sector.
- Despite the dropped investigation, the financial sector's critics question whether the accountability of major asset managers' top executives is sufficient to deter greenwashing, considering the significant sums involved in a €20 billion fund.
- The citizen movement "Finanzwende" expressed concern that allowing Wöhrmann, who had been accused of greenwashing, to escape personal consequences undermines accountability for deceptive practices in business and finance.
