EXPLORE
We designed our ESG approach to identify the issues that can matter most to investors. It is built on three tightly woven components: proprietary ESG investment frameworks, a multilayered monitoring process, and engagement and proxy voting. Each element reinforces the others, which makes the system smarter over time.
30+
30+
200+
200+
14
14
We look beyond third-party data and spend thousands of hours on our own research. With an average 14 years of experience, our analysts understand the challenges of each industry they cover. They know the right questions to ask. Our sector-specific frameworks focus on the most important ESG issues when evaluating a potential investment.
Frank Beaudry, Capital Group analyst, explains how he identifies ESG issues that influence his investment decisions in the mining industry.
We gather data from industry-leading third-party data providers, news reports and company statements, but that's just the start. To decide which investments raise potential ESG concerns, we overlay our own proprietary frameworks and deep research. Low-rated holdings are flagged for review, and analysts provide detailed insights on the particular issues.
The breadth and depth of our on-the-ground research coverage mean we dig deeper and don't always agree with conventional ratings.
One database combines our own ESG research and third-party ratings, e.g., MSCI, Sustainalytics, and UN Global Compact assessments.
Our system flags key ESG issues based on our sector-specific investment frameworks, as well as third-party data and standards.
Flagged holdings require enhanced research and review. Insights and engagement are recorded.
If there are outstanding concerns, the Issuer Oversight Committee provides an additional layer of review.
Portfolio holdings are subjected to ESG screens using multiple leading data providers and risk methodologies. Click the chart below to see the percentages of flagged and non-flagged holdings.
We believe ongoing dialogue and engagement with companies and issuers are stronger tools than exclusion when seeking long-term, sustainable results. Based on learnings from our monitoring process, our investment professionals engage with management teams to understand their goals. Building long-standing relationships gives us an opportunity to positively shape and lead industry standards. And as a large, active asset manager, we can adjust our investment decisions based on our findings.
Proxy voting is an integral part of our investment stewardship process. Our investment professionals are directly involved in determining our votes, supported by a specialist Global Stewardship & Engagement (GSE) team. Read our proxy voting policies and procedures to learn more.
Beyond our direct engagement with individual companies, we support various industry initiatives that address ESG themes. Our approach to investment stewardship also applies to our own business practices, with focus on improving our communities and environment.
20,000+
20,000+
20,000+
annual meetings
annual meetings
annual meetings
2,100+
1,850+
1,850+
shareholder meetings
shareholder meetings
shareholder meetings
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17
specialists
specialists
specialists
Download ESG at Capital Group (PDF) to learn more.
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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
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Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
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