Deutsche Bank’s asset management arm, DWS Group, is being investigated by U.S. authorities over claims it made about its sustainable investing practices, the Wall Street Journal reported Wednesday.
According to the WSJ’s report, federal prosecutors and the Securities and Exchange Commission are probing DWS after the company’s former head of sustainability said the firm had exaggerated its use of sustainable investing criteria to manage assets. DWS declined to comment and CNBC was unable to independently verify the report.
The WSJ reported that DWS had misled investors over its sustainability efforts after having difficulties with its environmental, social and governance investing strategy.
Deutsche Bank also declined to comment, and the SEC was not immediately available for comment when contacted by CNBC.