Police raid Deutsche Bank in ‘greenwashing’ inquiry

DEUTSCHE Bank’s headquarters have been raided by German police over accusations of “greenwashing” its investments.

Around 50 police officers yesterday entered the Frankfurt offices of Germany’s largest lender, reported Bloomberg, and those of its asset manager unit DWS.

It follows inquiries into DWS by the German regulator Bafin and the US Securities and Exchange Commission after Desiree Fixler, its former head of sustainability, alleged last year that the company had inflated its environmental, social and governance (ESG) credentials.

The raid is an early example of lenders potentially facing legal consequences for greenwashing – the term for companies giving false information to promote an environmentally responsible image.

Ms Fixler said DWS misled investors by claiming that hundreds of billions of its assets under management were “Esgintegrated”. DWS has since dropped the label, and scaled back its sustainability claims. In its 2021 annual report, DWS disclosed only €115bn (£98bn) in “ESG assets” for the year, some 75pc less than the €459bn reported the year before.

German authorities began investigating in January, after reports on Ms Fixler’s claims, according to Bloomberg. It added they found ESG factors only played a role in a minority of investments – contrary to DWS fund prospectuses.

A spokesman for DWS said it has “continuously cooperated fully” with authorities and “will continue to do so”, and added that the company stands behind its most recent annual report.

A Deutsche Bank spokesman confirmed the raid and said it was “directed against unknown persons” within DWS. Bafin did not respond to a request for comment.