If Everything Claims to Be Sustainable, How Do You Know What Really Is?
An insight piece with Dr Alan Whittle, Resolve ESG fund consultant
Greenwashing is when a fund or company markets itself as sustainable without the substance to back it up. In the UK, calling an investment ‘sustainable’ means meeting criteria set by the regulator, and Becketts checks fund managers’ behaviour beyond the portfolio itself, not just their marketing.
Greenwashing is the fair challenge every sustainable investor should put to their manager. Here is how Resolve answers it.
The scepticism is healthy. If every fund house now markets a green range, it is reasonable to ask whether the label means anything at all. Alan treats greenwashing not as an accusation to deflect but as one of the things he actively monitors – and the checking goes beyond the portfolio’s own holdings.
“That’s one of the things that I keep an eye on, on a regular basis within the portfolios – actually looking to see what those asset managers are doing outside of these portfolios.”
— Dr Alan Whittle
A recent decision shows what that means in practice: Resolve reviewed a cheaper alternative to an existing government bond holding, and chose to keep the more expensive position instead, on sustainability-credibility grounds rather than cost.
What rules govern calling an investment ‘sustainable’ in the UK?
Quick answer: Calling an investment sustainable in the UK means meeting criteria set by the financial regulator, with the Advertising Standards Authority also policing unevidenced claims – the word isn’t available to anyone who wants to use it.
There is more holding the line than one consultant’s vigilance. In the UK, calling an investment sustainable means meeting criteria set by the regulator, with the Advertising Standards Authority also policing claims that cannot be backed by evidence. The word is not available to simply anyone who wants to throw it around.
This is also why the portfolio is called Resolve rather than something more obviously green. Naming it “ethical” or “sustainable” would have tied it to a specific set of regulatory criteria or a single defined objective. The chosen name keeps the flexibility to blend sustainable, responsible and ethical assets – while being careful not to overclaim.
Does sustainable investing actually achieve anything?
Yes, but not in the way people often picture it. Rather than funding visible projects like solar panels on schools, sustainable investing works mainly through equity ownership and lending – funding the companies and infrastructure the future depends on.
The sharpest version of the challenge is not about labels at all. It is the client who suspects the whole exercise is symbolic. Alan’s answer is refreshingly unromantic about what the portfolio does and does not do.
“This isn’t an investment which puts solar panels on the roofs of schools and buys community centres.”
— Dr Alan Whittle
What it does instead is invest in the companies building the technology the future depends on – in education, healthcare, world economies, green technology and renewable energy. And, crucially, it lends. The part people forget about sustainable investing is the fixed income side: through the bond component, money is lent not only to governments but to companies building the infrastructure of tomorrow.
“It is investing in the companies by lending them the money that they need to be able to develop new ways of doing things.”
— Dr Alan Whittle
That’s the real test for greenwashing – not what a fund calls itself, but where the money actually goes, who’s trusted to manage it, and whether anyone’s checking what a manager does when no one’s watching.
FAQs
What is greenwashing in investing?
Greenwashing is when a fund or company markets itself as environmentally or socially responsible without the substance to back up the claim – for example, promoting green credentials while quietly funding the opposite.
Is ‘sustainable investing’ a regulated term in the UK?
Yes. Calling an investment sustainable means meeting criteria set by the UK’s financial regulator, and the Advertising Standards Authority also polices sustainability claims that can’t be backed by evidence.
Does sustainable investing actually change anything?
It works mainly through equity ownership and lending rather than visible community projects – funding the companies and infrastructure (education, healthcare, green technology) that the future depends on.
- The value of your investments can go down as well as up, so you could get back less than you invested.
- The information here is for general guidance only and does not constitute personal financial advice. If you are unsure whether an investment is suitable for you, please speak to your Becketts adviser.
- Approved by Becketts FS Ltd 02/09/2026. Becketts is a trading name of Becketts FS Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 409051)
