Deutsche Bank, one of the world’s most important banking groups, ended up at the center of an investigation for deceiving investors about shares being sold as green.
The huge scandal, which many newspapers are talking about, concerns DWS and Deutsche Asset & Wealth Management in detail.
Asset management company, like companies active in Europe, is committed to respecting and pursuing its goals Reducing the social and environmental impacts of their economic activities. DWS, 80% owned by Deutsche Bank, has been accused of misleading investors with investments that do not meet ESG standards.
These should contribute to mitigating climate change and adapting economic activities to it. Protection and sustainable use of water and marine resources, as well as prevention and other Control of pollution and the social consequences of the same.
Deutsche Bank under investigation: Why companies are benefiting from greenwashing
Adhering to these standards helps companies improve their reputation with the public. They are able to Publish their findings objectively to consumers and investors. The environmental protection of the facade called green washing has become a reality justified by the enormous pressure that companies put in regarding change in their production processes.
Among the 25 largest companies in the world that have announced their commitment to reducing polluting emissions, Very few people actually showed really effective efforts. Among those who have demonstrated a reasonable level of integrity in their efforts are: Apple, Sony and Vodafone. The phenomenon of green bleaching is beneficial for companies to retain customers and benefit from prestige; This can happen without modifying production methods and investing huge resources to obtain its results.
Preliminary results of the investigation in Germany
According to the Frankfurt Public Prosecutor, the first investigations revealed that, contrary to what was stated in the prospectus for the DWS funds, ESG factors are not taken into account. This happened in many investments that the 2020 budget was estimated at $400 billion.
Today the DWS Group announces a change of top; Asoka Woehrmann decided to resign by agreement with the company. The new CEO will be Stefan Hobbs, who previously held the position of Head of Corporate Banking at Deutsche Bank.
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