Date of publication: 18/01/2026
Category: International Policy & Legal Affairs
Prepared by: ESG Expert Team – Carbon Credit Viet Nam Joint Stock Company
The era of “self-proclaimed” green credentials without evidence has officially come to an end. In April 2025, Germany’s financial regulator (BaFin) fined DWS – the asset management arm of Deutsche Bank – €25 million ($27 million) for deficiencies in its ESG controls.
Combined with an earlier penalty from the U.S. Securities and Exchange Commission (SEC), DWS’s total direct financial damage reached $46 million. The case sets an important precedent: ESG claims are no longer a Marketing Gimmick but a legal commitment. Misrepresenting ESG information is now treated as seriously as financial reporting fraud.
1. THE FULL PICTURE: WHEN “GREEN DNA” WAS JUST EMPTY WORDS
The scandal began in 2021 when Desiree Fixler, the former Head of Sustainability at DWS, blew the whistle, accusing the company of exaggerating the scale of assets managed under ESG criteria.
In its marketing materials and annual reports, DWS claimed that ESG was “core to the DNA” of the company and integrated into every investment decision. However, investigations by the SEC and BaFin exposed a very different reality:
- The company had no quality-control processes for ESG data.
- Fund managers did not comply with the ESG policies the company had disclosed to investors.
- Many investments were labeled “Green” without ever passing through any ESG screening filter.
The result was a record fine and the departure of DWS’s CEO immediately after the authorities raided the company’s headquarters.
2. THE LEGAL TREND: “ZERO TOLERANCE”
The DWS case is not an isolated incident. It is part of a market clean-up campaign by global regulators to combat Greenwashing.
- In Europe: The Green Claims Directive is tightening the use of vague terms such as “environmentally friendly” and “carbon neutral” unless backed by a certified product Life Cycle Assessment (LCA).
- In the United States: The SEC has established a Climate and ESG Task Force dedicated to hunting down violations in information disclosure.
The message is crystal clear: If you say you are doing something for the environment, you must be able to prove it with data (Audit Trail). Otherwise, it constitutes deception of investors and consumers.
3. RISKS FOR VIETNAMESE BUSINESSES
In Vietnam, the terms “Green,” “Sustainable,” and “Net Zero” are being overused in advertising and annual reports. Below are 3 “traps” that Vietnamese businesses commonly fall into, viewed through the lessons of the DWS case:
3.1. The “Overstatement” Trap
Many businesses declare a “Green Product” merely because they switched to paper packaging, while their production processes remain heavily polluting. When exporting to the EU/US, the gap between marketing claims and actual production practices will become grounds for litigation.
3.2. Lack of Verifiable Data (Lack of Evidence)
A business announces it has cut emissions by 50% but cannot present its calculation methodology and has no third-party verification. In the eyes of international partners, such figures are worthless and carry latent legal risks.
3.3. Inconsistency
The Vietnamese-language sustainability report says one thing while the report sent to foreign investors says another, or leadership commitments are never implemented at the operational level (as in the case of DWS).
4. RECOMMENDATIONS FROM CARBON CREDIT VIET NAM
To avoid repeating DWS’s $46 million mistake, Vietnamese businesses should adopt a “defense-in-depth” strategy:
- The principle of “Say it – Do it – Prove it”: Every ESG claim (on websites, packaging, fundraising decks) must be backed by traceable data records. Treat ESG data with the same importance as VAT invoices in accounting.
- Establish internal ESG controls: There must be an approval process for environmental communications content. The Legal and Compliance departments should review all green claims before they are released to the public.
- Use third-party verification: For material indicators (such as GHG emission reductions), businesses should engage independent auditors for verification (Assurance). A credible verification seal is the best shield against Greenwashing allegations.
5. CONCLUSION
Greenwashing was once considered a “communications mishap” that could be fixed with an apology. But after the DWS case, it has become a material financial risk.
For Vietnamese businesses aspiring to expand globally and attract international capital: Honesty and Data Integrity are the most valuable intangible assets. Do not let one glossy, unsubstantiated claim destroy a reputation built over decades.
About us: This report was prepared by the ESG Strategy & Policy Team of Carbon Credit Viet Nam Joint Stock Company. We provide solutions for building transparent ESG data governance systems, helping businesses face international investors’ Due Diligence reviews with confidence.
