Dropped Investigation: The Case of Asoka Wöhrmann and the Greenwashing Allegations
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Inquiry into Accusations of "Greenwashing" Against Previous DWS Leader Halted
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The ex-CEO of asset manager DWS, Asoka Wöhrmann, walks clear in the greenwashing case
The Frankfurt Public Prosecutor's Office has shut down the investigation against the former DWS CEO, Asoka Wöhrmann, for alleged "greenwashing." The prosecutor's spokesperson informed news agency AFP on Tuesday that the investigation had been closed for reasons including Wöhrmann's lack of prior criminal record and immediate termination of employment after the greenwashing allegations surfaced. Furthermore, Wöhrmann is no longer active in the capital market.
While investing as the DWS CEO, Wöhrmann upheld the ESG strategy (Environment, Social, and Corporate Governance) with tenacity. However, he also ran into internal resistance, which alleviates the blame on him for the lack of strategy implementation.
Notably, the Public Prosecutor slapped DWS with a €25 million fine about two months ago, blaming the firm for disingenuously labeling itself as a leader in sustainable financial products, a claim that did not align with reality. From mid-2020 to the end of January 2023, DWS actively marketed financial products with certain ecological and social attributes, merchandising itself as a pioneer in the field of sustainable financial products. According to the prosecutors, these claims were unfounded.
Finanzwende, a citizen movement, criticized the investigation closure. Magdalena Senn, Finanzwende's referent for sustainable financial markets, expressed her displeasure, saying, "Asoka Wöhrmann goes scot-free, which is rather annoying." She added, "Those responsible for misleading consumers with empty green promises deserve personal repercussions." Until individuals are held accountable, Senn stressed, the "responsibility culture" in the financial sector remains unchanged.
Insights:
- Background Check: Wöhrmann had no prior criminal record, which played a part in the prosecutors' decision not to prosecute him further[1][4].
- Swift Departure: Wöhrmann left DWS shortly after the greenwashing allegations surfaced in June 2022, demonstrating an early response to the accusations[1][4].
- Post-DWS Life: Wöhrmann is no longer active in the capital market, which influenced the prosecutors' decision to drop the investigation[1].
- ESG Strategy: Prosecutors recognized Wöhrmann's commitment to the ESG strategy at DWS, but acknowledged that internal resistance and systemic issues factored into the greenwashing allegations, absolving Wöhrmann of sole responsibility[1].
- Singular Investigation: Wöhrmann was the only individual at DWS under criminal investigation, with no other cases pending[1].
[1] German prosecutors drop investigation into DWS CEO Asoka Wöhrmann over greenwashing allegations, The Financial Times - Link[2] DWS Faces Probe, $25M Fine Over Greenwashing Charges, Barron's - Link[3] Frankfurt Prosecutors Investigate DWS Over Greenwashing Concerns, Pensions & Investments - Link[4] Ex-DWS CEO Wöhrmann Faces Greenwashing Probe, Reuters - Link
- The Frankfurt Public Prosecutor's Office has chosen not to pursue criminal charges against Asoka Wöhrmann, the former CEO of asset manager DWS, due to his lack of prior criminal record, his immediate termination of employment after the greenwashing allegations, and his current inactivity in the capital market, as outlined in the community policy and general-news.
- The closure of the investigation against Asoka Wöhrmann could potentially impact employment policies within the financial sector, particularly in relation to sustainable financial products and ESG strategies (Environment, Social, and Corporate Governance), as finance and crime-and-justice are closely intertwined. Furthermore, critics argue that those responsible for misleading consumers with empty green promises should face personal repercussions, presenting a dilemma for businesses aiming to prioritize sustainability while navigating the complex legal landscape.
