German prosecutors raided Deutsche Bank offices in Frankfurt on Tuesday as part of a probe into allegations that the financial institution was marketing investment products as "greener" than they actually were.

Investigators were carrying out raids "on suspicion of investment fraud" at the offices of the bank and its asset management subsidiary DWS, Frankfurt prosectors said in a statement.

The searches related to "greenwashing accusations" at DWS, Deutsche Bank said in a statement.

DWS said it would "work together with all relevant regulators and authorities", according to the statement.

The accusations were based on "statements made by a former DWS employee" who became a whistleblower for US securities regulators in 2021, the prosecutors said.

Investigators had found "sufficient indications" that ESG (environmental, social and governance) standards were only taken into account "in a minority of investments" contrary to information in DWS's "sales prospectus", they said.

The probe was targeting "as yet unknown" employees at DWS, prosecutors said.

The asset manager is already under investigation by federal prosecutors in the US on suspicion of lying about the scale of their green investments.

ESG products have become a major asset class as financial institutions seek to bring their portfolios in line with global climate targets.

US securities regulators last week put forward proposals to tighten disclosure requirements on the rising number of ESG investments.

Seeking to address the problem of "greenwashing", the Securities and Exchange Commission said the measure was meant to avoid cases where a fund "could exaggerate its actual consideration of ESG factors."

sea/hmn/yad

DEUTSCHE BANK

Related Links

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Heads roll at Aussie power giant after green takeover bid
Sydney (AFP) May 30, 2022
Australia's biggest carbon emitter AGL abruptly announced on Monday the departure of its chairman, CEO and a string of board members, while scrapping a long-planned move to spin off its lucrative coal business. In a statement to investors, the company said Peter Botten would resign as chairman and Graeme Hunt would step down as CEO when a replacement is found. Operations at AGL - Australia's largest energy company - have been under fierce scrutiny since billionaire green activist Mike Cannon-B ... read more