HOW IT WORKS
Why integrate ESG?
Because it enhances our research.
Watch this video and learn how:
Jessica Ground, global head of ESG, explains how the three parts of our ESG process — Research & Investment Frameworks, Monitoring Process, and Engagement & Proxy Voting — naturally fit into The Capital System™ .
Analysis of material ESG issues, alongside other considerations, helps us identify investment risks and opportunities. They can be, but are not necessarily, determinative to an investment decision.
RESEARCH & INVESTMENT FRAMEWORKS
What's material for one isn't material for all
We have developed 30+ sector-specific investment frameworks that distill our thinking on material ESG issues, brought to life with 45+ data sources.
Materiality matters
Seema Suchak, head of ESG sector research, discusses materiality.
Frameworks in action: Health care services
Cheryl Frank, portfolio manager, talks value creation and destruction in US health care.
Frameworks in action: Mining
Frank Beaudry, analyst, discusses how the investment frameworks help evaluate material ESG issues in the mining sector.
MONITORING PROCESS
How we identify, evaluate and assess
To complement our fundamental, bottom-up research, our monitoring process leverages multiple data providers and risk methodologies to surface market views of potentially material ESG risks.
Identify risk
Review corporate and sovereign holdings against multiple third-party data sources, where data is available, to identify material ESG risks and violations of international norms.
Evaluate
Low-rated companies are flagged for review. Investment analysts share their perspectives on the materiality of issues.
Assess issuer
Flagged holdings are further scrutinized, with assessments drawing on a combination of a long-term view, engagement and analysis – never solely on monitoring results.
Want more on monitoring?
Learn how our process works in the real world.
ENGAGEMENT & PROXY VOTING
Deep analysis on hard-to-measure ESG issues
As one of the world’s largest active managers, we have long-standing relationships with company management that allow us to have meaningful dialogue about managing material ESG risks and opportunities.
ENGAGEMENT
Our investment group had 830+ ESG-related engagements across 500 companies in 2022.
INVESTOR-LED
Investment professionals partner with our stewardship team to ensure companies hear consistent messages.
TRANSPARENCY
ESG engagement goals and discussion outcomes are documented to measure progress.
PROXY VOTING
Our dedicated team analyses each proxy with final outcomes decided by investment professionals.
ESG resources
Capital Group stewardship report
Find real-world examples of our engagement and proxy voting efforts.
Want to stay ahead of the curve?
Explore the latest research and insights in our ESG perspectives library.
