Deutsche Bank’s DWS Sued Over Fund Greenwashing Allegations

Deutsche Bank AG’s asset management unit DWS Group was sued by a German consumer group alleging it used “boastful advertising” to exaggerate the green credentials of one of its funds.

In its publicity material, DWS’s ESG Climate Tech Fund claimed none of the investments were in companies from controversial sectors like coal or weapons without transparently explaining how it could verify that, Verbraucherzentrale Baden-Wuerttemberg said in a statement on Monday. The companies held in the fund are allowed to generate up to 14.99% sales in the coal industry, the consumer group said.

“Greenwashing of financial products is ubiquitous,” Niels ...