Frankfurt prosecutors said that DWS' "statements in external communications, such as claiming to be a 'leader' in the ESG (environmental, social and governance) area or stating 'ESG is an integral part of our DNA' did not correspond to reality".

The asset manager said it accepted the fine and admitted that "in the past our marketing was sometimes exuberant".

DWS has been dogged by the case ever since a top executive came forward several years ago with "greenwashing" allegations, and the controversy has seen the asset manager's offices raided and prompted its CEO to step down in 2022.

It had already been fined $19 million by the Securities and Exchange Commission in the United States for misleading green statements in 2023.

In the German case, prosecutors said that DWS had given the impression of holding a "leading market position" in climate-friendly products, but this was not the case.

Rather, a "transformation process" was still underway which had not yet been completed, they said in a statement.

"Statements in external relations must not go beyond what can actually be implemented," it added.

ESG products have become a major asset class as financial institutions seek to bring their portfolios in line with global climate targets.

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DWS

Deutsche Bank