German banking heavyweight DekaBank is being sued for allegedly misleading retail investors over the social and environmental impacts of one of its funds.
Baden-Württemberg Consumer Centre, a consumer protection agency located in the German state of Baden-Württemberg, has brought the case in relation to the Deka-Sustainability Impact Fund, claiming the ‘impact calculator’ it offers to potential retail investors is misleading.
The calculator appears on the information page for the fund, and potential investors can enter an investment sum to find out the potential environmental and social impact of their investments.
According to the calculator, a €10,000 investment in the fund could lead to a CO2 reduction of 575kg, which it claims is equivalent to driving 3,597km in a diesel car.
The calculator gives five other metrics, including the amount of renewable energy produced and the amount of waste saved.
While the website says that the effects …