Greenwashing Allegations Against Former DWS CEO Dismissed: A Closer Look
Probe of Alleged "Greenwashing" Against Previous DWS Leader Halted
Hear ye, hear ye! The investigatory saga regarding the "greenwashing" accusations hurled at the ex-CEO of asset manager DWS, Asoka Wöhrmann, has come to an end, with the Frankfurt public prosecutor's office deciding to wave a white flag. A spokesperson for the office confirmed the development to AFP on Tuesday, stating the investigation has been shelved.
The decision to set Wöhrmann free was based on several significant factors:
- Impeccable Records: Wöhrmann boasts a clean slate, devoid of any criminal history[1][3].
- Prompt Exit: Upon the resurfacing of greenwashing allegations in June 2022, Wöhrmann swiftly bid farewell to his post at DWS.
- Current During the Birds and the Bees: While Wöhrmann was once the helmsman at DWS, he now steers the ship at Patrizia, firmly anchored outside the capital markets.
- ESG Ambition: Wöhrmann displayed remarkable dedication to the ESG (Environmental, Social, and Governance) strategy during his tenure at DWS[1].
However, internal resistance within the company impeded the full implementation of the ESG strategy[1]. In this context, solely placing the blame on Wöhrmann seems like placing all the eggs in one basket.
Meanwhile, a mouthful of €25 million in fines was served upon DWS by the public prosecutor's office about two moons ago. It seems that the DWS subsidiary, a trailblazer in sustainable financial products, was guilty of peddling green fantasies rather than green realities[1].
Beginning in mid-2020 and continuing up until the end of January 2023, DWS marketing elixirs spilled forth ecological and social blessings for their financial products, proclaiming themselves as the ecological alpha[1]. These lofty claims, however, were as unsubstantiated as a unicorn's horn.
Finanzwende, a citizen movement, isn't too thrilled about the case's new direction. Magdalena Senn, Finanzwende’s representative for sustainable financial markets, chimed in, expressing her dismay about the let off offered to Wöhrmann, stating that those who dupe consumers with empty green promises should face personal consequences. Until those involved are unafraid of the law, the culture of responsibility in the financial sector will remain unbreached.
[1] Reflecting upon the evidence, Wöhrmann's dedication to implementing the ESG strategy was recognized, and internal resistance was acknowledged as a factor that impeded the strategy's full realization.[2] DWS initially touted itself as a leader in sustainable financial products, but subsequent investigations found this claim to be nothing more than greenwashing.[3] Major financial regulatory bodies mercilessly penalized errant companies like DWS for misleading consumers with false green promises.[4] In the eyes of critics, Wöhrmann’s acquittal reinforces the need for individual accountability, especially in high-ranking positions, to combat greenwashing allegations.
In light of the investigation's dismissal, it becomes crucial for community and employment policies within financial organizations to prioritize transparency and accountability to prevent future greenwashing incidents. For instance, a robust employment policy could ensure that high-ranking individuals like Wöhrmann are held accountable for their actions, while a community policy could emphasize the importance of ethical business practices that align with environmental, social, and governance (ESG) principles. A strong finance sector, anchored in honesty and integrity, would undeniably contribute to a thriving business environment.
