Deutsche Bank Executive Resigns over Greenwashing Allegations

DWS, a Deutsche Bank subsidiary, commented on Wednesday that Asoka Woehrmann, its Chief Executive Officer, has resigned hours after authorities raided its offices. According to the Associated Press, via Business Today, there are allegations about the group engaging in ‘greenwashing’ by exaggerating the sustainable credentials of certain funds it had sold.

“At the same time, the allegations made against DWS and myself in past months have become a burden for the company, as well as for my family and me. In order to protect the institution and those closest to me, I would like to clear the way for a fresh start,” Woehrmann commented.

According to prosecutors, initial investigations indicated that environmental, social and governance criteria were not taken into account in most of the funds featured in the company’s sales brochures.

On Tuesday, Deutsche Bank said prosecutors’ actions were aimed at pursuing “unknown individuals in connection with greenwashing allegations against DWS.”

“The allegations are that DWS has been advertising so-called ESG financial products for sale as being particularly green and sustainable when they actually weren’t. In the course of our investigations we’ve found evidence that could support allegations of prospectus fraud,” a spokesman for the public prosecutor said.

Woehrmann's Replacement

Stefan Hoops, the head of the corporate bank at Deutsche Bank and DWS's largest shareholder, will replace Woehrmann, whose resignation takes effect on 9 June.

In other news, last month, FinLync, a fintech platform, confirmed that Deutsche Bank had formed a partnership. Corporations will have access to real-time treasury information thanks to the collaboration. By developing efficient APIs for banks, the bank aims to boost innovation in the financial services sector. Deutsche Bank and FinLync plan to expand the range of pre-integrated APIs with the German bank.

A recent survey conducted by Deutsche Bank and the Association of Corporate Treasurers highlighted the growing popularity of APIs among treasurers.