Deutsche Bank’s investment arm DWS has been fined €25 million ($USD27 million) over charges that it misled investors over its sustainable investing credentials, according to a statement released by the Frankfurt prosecutor’s office.

In a statement following the announcement, DWS said that it has “acknowledged that in the past our marketing was sometimes exuberant,” and that the firm has already improved its internal documentation and control processes.

The announcement concludes a long-standing greenwashing saga for the asset manager, which began in August 2021, with allegations by DWS’ former sustainability chief Desiree Fixler that the firm misrepresented in its annual report on the extent to which assets were invested using ESG integration in the investment process.

In May 2022 police raided the Frankfurt offices of DWS and Deutsche Bank as part the greenwashing investigation. DWS CEO Asoka Woehrmann resigned the following day.

The U.S. Securities and Exchange Commission (SEC) launched its own investigation into the allegations, with DWS agreeing in 2023 to a $19 million fine to settle the charges, marking the largest-ever greenwashing penalty to date imposed on an asset manager by the SEC.

The Frankfurt prosecutor said that its investigation found that DWS’ claims to be a “leader” in ESG or that “ESG is an integral part of our DNA,” gave the impression that the firm held a market-leading position in ESG investigation that “did not correspond to reality,” as the firm was still undergoing a “transformation process.” The prosecutor added that “statements in external relations must not go beyond what can actually be implemented.”

In its statement, DWS said that it welcomed “the conclusion of the ESG investigation,” adding that the fine will not affect the firm’s Q1 2025 results, as it has already made provisions for the penalty.