Deutsche Bank AG’s asset management unit is starting a fresh review into greenwashing claims by a whistleblower, as regulatory probes in the U.S. and Germany continue.
DWS Group has now hired U.S. law firm Sullivan & Cromwell to do a new assessment of the allegations, according to people familiar with the matter who asked not to be identified discussing private information. The decision comes as the Securities and Exchange Commission, German watchdog BaFin and the U.S. Department of Justice probe DWS over claims brought forward by its former sustainability head Desiree Fixler.
DWS hired the law firm to represent it in its dealings with the SEC and the scope of the assessment goes beyond Fixler’s allegations, one person said.
Investors learned just over a month ago that regulators are probing DWS, which fired Fixler just before publishing an annual report that contained environmental, social and governance figures she said were overblown. The case has sent shock waves through the asset management community as the industry wakes up to a more aggressive regulatory environment after years of unfettered ESG market growth.
DWS, which has consistently rejected the allegations, initially brought in PwC to conduct a review that found the fund manager hadn’t engaged in greenwashing. A spokesperson for DWS declined to comment.
Bafin has also contacted DWS parent Deutsche Bank about the role played by the lender’s president, Karl von Rohr, Bloomberg has reported. Von Rohr chairs DWS’s supervisory board, and in that capacity signed off on the annual report that’s now being investigated for alleged greenwashing.
Von Rohr was also instrumental in mandating the PwC assessment after Fixler sent him an email outlining her allegations shortly after she was dismissed in March, Bloomberg has reported.
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