German police raid DWS and Deutsche Bank over greenwashing allegations

Law enforcement in Frankfurt raided the offices of Deutsche Bank and the nearby premises of its asset management subsidiary DWS.

According to the prosecution, the raid is linked to allegations of greenwashing against DWS, with 50 officials from the German regulator BaFin, the federal criminal police office and the prosecution searching the scene.

Since the market opened on Tuesday, shares of DWS have fallen 1.8%, while shares of Deutsche Bank have fallen 1.7%.

A spokeswoman for the prosecutor’s office said Handelsblatt investigations have been ongoing since the beginning of the year, with the names of those involved still unknown.

DWS has faced allegations of greenwashing since its former chief sustainability officer, Desiree Fixler, went public last August that the company was exaggerating the degree of sustainability integration.

This led the US regulator SEC to launch an investigation into the company’s practices. Since then, a German labor court in Frankfurt has dismissed a lawsuit against DWS brought by Fixler.

Commenting on the raid, a DWS spokesperson issued the following statement: ‘We have cooperated continuously and extensively with all relevant regulatory authorities on this matter and will continue to do so.