German asset manager DWS has settled a greenwashing court case with the consumer watchdog in Baden-Württemberg – Verbraucherzentrale Baden-Württemberg – through a cease-and-desist declaration, refraining from marketing certain features of its Invest ESG Climate Tech fund as sustainable in the future.

The court hearing that was planned for tomorrow, 10 March, before the regional court in Frankfurt, will therefore not take place, the consumer association said.

The watchdog had filed a lawsuit before the regional court in Frankfurt, accusing DWS of misleading investors by claiming that the Climate Tech Fund excludes companies active in controversial sectors such as coal or defense equipment.

The consumer association will check whether the claims made by DWS on the impact on climate of its financial products are reasonable after making the changes, it said.

A spokesperson for DWS told the newspaper Handelsblatt that the marketing material for financial products meet legal requirements.

Commerz Real taken to court as it fails to provide sufficient information about klimaVest

The watchdog has also called on Commerz Real to take action against accusations of greenwashing.

The regional court in Stuttgart, in the state of Baden-Württember, has ruled that Commerz Real, the asset management arm of Commerzbank, has failed to provide sufficient information on the method used to calculate the impact on the environment of its klimaVest fund, particularly with regard to CO2 footprint reduction.

KlimaVest is a real assets impact fund investing in renewable energy infrastructure projects, onshore and offshore wind farms or photovoltaic projects, according to Commerz Real.

It had raised €1bn in January, investing in 33 wind and solar parks and 10 solar park project developments in Germany, France, Spain, Finland and Sweden, according to the asset manager.

The fund is required to define a target with a positive impact on the environment in line with the EU disclosure regulation and the taxonomy, according to the court ruling. The court added that it is sufficient that Commerz Real explains the calculation method in close proximity to the product.

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