Expanding Financial Planning firm Progeny has pledged to place ESG at the heart of its business and will aim ensure that all its investment managers undertake ESG qualifications.

Sarika Dhanjal, head of training and competence at Progeny, told Financial Planning Today that ESG is one of the core focuses for her team who are also developing processes on how to prepare for a meeting with ESG in mind.

She said the firm wants to, “place ESG at the core of how we behave and in turn, invest” due to ESG requirements becoming more mainstream and seen as more important from an investment point of view.

Ms Dhanjal said: “ESG is one of the focuses for the training and competence team at Progeny, who are working closely with the investment managers to create clear processes on how to prepare for an ESG meeting. This includes consideration of the additional questions that need to be asked during the fact-finding stage, guidance on completing the research, preparation for client questions and direction on the steps to take if a client wishes to proceed.

“Walking through various client scenarios and conducting role play sessions increases confidence and gives our investment managers the opportunity to practice and develop their skills in this area. The investment management team within Progeny are additionally all working towards various ESG qualifications and it is important to ensure that all investment managers are keeping up to date with the various changes to regulation.”

In recent months several trade bodies and investment managers have launched ESG training academies to educate advisers on ESG investments. The latest academy to launch is the PIMFA ESG Academy for Wealth Managers, offering online CPD-accredited training, which launched on 28 September. 

While Progeny sees the value in ESG academies, Mr Dhanjal said it is important not to rely on them alone when it comes to training financial advisers and Paraplanners on ESG investing.

She said: “ESG academies will provide a good grounding for individuals starting their career, but solely attending an academy is not sufficient in providing all the skills needed in advising clients.

"Academies are designed to provide an overview of the current regulation and the technical know-how – such as how to complete the ESG research – but this needs to be coupled with support and guidance on how to apply this knowledge to real life situations and build adviser confidence in answering clients’ questions.”