The DWS Group, which is listed on the German S-Dax, had presented fund products as "sustainable" or greener than they actually are and was promptly fined by the US Securities and Exchange Commission (SEC). Fine in an amount of 19 million euros due to ESG violations and greenwashing sentenced. In addition, the company was fined six million euros for not having sufficient money laundering controls in place. The company's legal fees alone in this case have so far amounted to around 39 million euros and it has lost one billion euros in value on the stock market. Added to this is the loss of reputation and possible claims for damages from investors. In Germany, the financial supervisory authority BaFin and the public prosecutor's office are still investigating the DWS Group. Mauricio Vargas, financial expert at Greenpeace, explained: "The court ruling clearly shows that greenwashing and consumer deception are not trivial offenses."
Authorities take stronger action against ESG violations and greenwashing
Die USA greift demnach aktuell härter durch als noch im Vorjahr, als man die US-Großbank Goldman Sachs zu 4 million dollars verurteilte. Sie bewarben in ihrer Asset-Management-Einheit des Wall-Street-Instituts zwei ihrer Fonds als „ESG-konform“, obwohl weder von ihnen ESG-Standards festgelegt wurden noch Richtlinien oder Strategien dazu existierten. Goldman Sachs hatte sie kurzerhand zu „grünen“ und „nachhaltigen“ ESG-Fonds erklärt. In Deutschland wurde Anfang 2022 die Luxemburger Commerz Real Fund Management S.à.r.l. vom Landgericht Stuttgart (36 O 92/21 KfH) unter Strafandrohung von 60.000 Euro abgemahnt, ihre irreführende Werbung für Nachhaltigkeitsfonds zu unterlassen. Sie hatte mit einer konkreten Auswirkung der Geldanlage in den beworbenen Fonds auf den persönlichen CO₂-Fußabdruck geworben.
CSDDD to form the framework for CSRD and EU taxonomy
On February 23, 2022, the European Commission was the first EU institution to present the proposal for a Corporate Sustainability Due Diligence Directive (CSDDD) published. The aim of this proposal is to legally oblige companies operating in the EU to comply with Human rights and environmental protection standards in their global Supply chains and to better penalize ESG violations and greenwashing. This proposal represents an important step towards sustainable business practices under uniform European conditions and complements existing regulations and other ongoing regulatory initiatives such as the Corporate Sustainability Reporting Directive (CSRD) with its CSRD reporting obligation and the EU Taxonomy Regulation. Sie soll ab Mitte 2029 für Unternehmen mit mehr als 5.000 Beschäftigten und mehr als 1,5 Mrd. Umsatz gelten.
European standardization by 2026
The CSDDD therefore links the CSRD reporting obligation with the Taxonomy and is attempting to harmonize the regulations. Overall, companies should expect that the ESG requirements continue to rise and Greenwashing pursued even more rigorously wird. Auch der am 22. März 2023 veröffentlichte Richtlinienentwurf der EU zu umweltbezogenen Angaben (Green Claims-RL) zielt in eine ähnliche Richtung. Die CSDDD hat die EU im Februar 2026 mit in die Veröffentlichung der Richtlinie 2026/470 (Omnibus-Änderungsrichtlinie) aufgenommen.
CSDDD key points against ESG violations and greenwashing
Companies, subsidiaries and management will be required to identify, report and minimize or eliminate negative impacts of their business activities on the environment and human rights along the entire value chain. Large companies must develop a business strategy that complies with the Paris climate protection agreements and the EU member states are setting up supervisory authorities and a European network to issue regulations and Fines better coordinated. Injured parties can also civil law against responsible companies proceed.
The CSDDD as a sharper sword
The recent fines against DWS Group and Goldman Sachs for ESG violations and greenwashing show that the authorities take stricter action. The EU is planning to introduce the Corporate Sustainability Due Diligence Directive (CSDDD) to force companies to comply with environmental and human rights standards in their supply chains and to create a binding superstructure for existing guidelines. Large companies need to develop strategies nowin order to comply with the Paris climate protection agreements. Small companies will be less affected. This underlines the Increasing importance of sustainability and transparency in corporate governance.