Germany’s DekaBank has avoided legal action on the sustainability claims of one of its retail funds by removing an allegedly misleading impact calculator used to market it.
Earlier this year, RI reported that the consumer protection agency for the German state of Baden-Württemberg had sought “judicial clarification” on the impact claims DekaBank made about its Deka-Sustainability Impact Fund.
In its lawsuit, the watchdog argued that the bank only acknowledged in its small print that the fund’s seemingly concrete sustainability impacts, as calculated by the in-house calculator, were based on estimates, not evidence.
Among the claims made by the now-removed tool was that a €10,000 investment in the fund could lead to a CO2 reduction of 575kg, equivalent to driving 3,597km in a diesel car.
Speaking about the case, Christian Klein, Professor of Sustainable Finance at the University of Kassel, told RI that it is “very important to first agree…