Allegations of ESG Misrepresentation Prompt Leadership Change at Major Asset Manager

The CEO of Deutsche Bank’s investment arm, DWS, Asoka Woehrmann, has announced his resignation following a police raid at the firm’s Frankfurt offices. The raid was part of an investigation into allegations of greenwashing—claims that the company misled investors regarding the sustainability of its financial products.

Woehrmann, who has led one of Europe’s largest asset managers since 2018, will step down after the DWS annual meeting on June 9. In an internal memo to staff, he acknowledged that the allegations had left a mark on the company and had become a burden on its operations.

Authorities Investigate Greenwashing Claims

The raid was triggered by media reports and regulatory examinations suggesting that DWS had overstated the extent to which ESG (environmental, social, and governance) principles were integrated into its investment strategies. The Frankfurt prosecutor’s office confirmed that there was suspicion of “prospectus fraud”, meaning that DWS may have misrepresented its sustainability-related financial products in official documents.

This latest development follows previous investigations by the U.S. Securities and Exchange Commission (SEC) and Germany’s financial supervisory authority BaFin into similar concerns. In 2021, DWS’ former sustainability chief, Desiree Fixler, alleged that the firm’s ESG investing claims were misleading, stating that its annual report exaggerated the percentage of assets truly managed under ESG principles.

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Fixler, who was hired in 2020 to strengthen DWS’ sustainability framework, was abruptly dismissed in March 2021—just before the company released its annual ESG report.

Leadership Transition Amid Growing Scrutiny

Following Woehrmann’s resignation, Deutsche Bank has appointed Stefan Hoops as the new CEO of DWS. Hoops, who has been leading Deutsche Bank’s Corporate Banking division since 2019, will now take charge of the asset management firm during a period of intense regulatory scrutiny.

The DWS case highlights the growing global crackdown on greenwashing, as regulators and investors demand more transparency and accountability in ESG investing. With sustainable investing becoming a major financial trend, authorities are increasingly targeting firms that misrepresent their ESG credentials to attract capital.

Investor Confidence at Stake

DWS, which manages over $1 trillion in assets, now faces reputational damage and potential regulatory penalties. Investors and regulators will closely watch how the firm addresses compliance issues and rebuilds trust in its ESG strategies.

As authorities worldwide continue to tighten rules on sustainable finance, this case serves as a warning to asset managers about the risks of exaggerating sustainability claims.

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