Moving On: Frankfurt Prosecutor Drops "Greenwashing" Inquiry Against Ex-DWS CEO, Asoka Wöhrmann
Probe of Alleged "Greenwashing" against Previous Head of DWS Halted
Taking a step back, the Frankfurt public prosecutor's office has wrapped up the investigation into accused greenwashing directed at the former CEO of Asset Manager DWS, Asoka Wöhrmann. On a Tuesday update with the news agency AFP, the spokesperson for the prosecutor's office confirmed the discontinuation of the investigation. Notably, Wöhrmann was deemed a non-repetitive offender, and his employment termination post-allegations, coupled with his current removal from capital market activities, were pivotal factors in the decision-making process.
As CEO at DWS, Wöhrmann vigorously supported the so-called ESG (Environmental, Social, and Governance) strategy. However, the spokesperson noted that he encountered opposition within the company, stating that the implementation shortcomings could not be attributed solely to Wöhrmann. In contrast, DWS was fined €25 million by the same office approximately two months prior to this disclosure. The Deutsche Bank subsidiary had claimed a market-leading position in sustainable financial products, a claim that "didn't hold up," according to the Frankfurt public prosecutor's office.
Between mid-2020 and the end of January 2023, the company intensively peddled financial products with ecological and social attributes, advancing itself as a pioneer in the realm of sustainable financial products. Unfortunately, these claims were baseless, as per the public prosecutor's office.
The citizen movement Finanzwende took umbrage at the discontinuation of the investigation, with Magdalena Senn, Finanzwende’s expert on sustainable financial markets, remarking, "It's frustrating. Those who mislead consumers through hollow green promises should face personal repercussions. As long as these players are left scot-free, there won't be much progress in fostering accountability within the financial sector."
Additional Insights:
- No Prior Record: Wöhrmann previously held a clean criminal record, which significantly influenced the decision to dismiss the case.
- Role Outside Capital Market: Since departing from DWS, Wöhrmann has held a position outside the financial market, further contributing to the decision not to prosecute.
- Whistleblower complaint Background: The investigation stemmed from a 2021 whistleblower complaint lodged by DWS’s former sustainability chief, Desiree Fixler. The regulatory action spanned Germany and the US, culminating in fines for DWS totaling €25 million in Germany and $19 million to the US SEC.
- Number of Cases: The investigation against Wöhrmann was the sole criminal probe at DWS related to these allegations. Following the probe’s closure, no more individual cases remain open.
All considerations taken, the former CEO of Asset Manager DWS, Asoka Wöhrmann, was deemed a non-repetitive offender, as his current employment removal from capital market activities contributed to the decision to discontinue the investigation into alleged greenwashing. Despite the dismissal of the case against Wöhrmann, there exists ongoing discontent, with prominent figures in the financial sector advocating for personal accountability, such as Magdalena Senn of Finanzwende, who finds it disheartening that those making empty green promises face no repercussions.
In the meantime, DWS, a subsidiary of Deutsche Bank, was fined €25 million for false claims about its market-leading position in sustainable financial products, as revealed by the Frankfurt public prosecutor's office, which is an indication that the business sector must continue addressing and rectifying such financial discrepancies in future endeavors.
