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 U.S. health care.
Frameworks in action: Mining
Frank Beaudry, investment 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
Going deep 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 analyzes 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.
Your gateway to all things ESG at Capital Group
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Unless otherwise indicated, any Capital Group information referenced above reflects the Capital Group global organization.
Unless otherwise indicated, the investment professionals featured do not manage Capital Group‘s Canadian mutual funds.
References to particular companies or securities, if any, are included for informational or illustrative purposes only and should not be considered as an endorsement by Capital Group. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds or current holdings of any investment funds. These views should not be considered as investment advice nor should they be considered a recommendation to buy or sell.
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 not be comprehensive or to provide advice. For informational purposes only; not intended to provide tax, legal or financial advice. We assume no liability for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon. The information contained herein has been supplied without verification by us and may be subject to change. Capital Group funds are available in Canada through registered dealers. For more information, please consult your financial and tax advisors for your individual situation.
All Capital Group trademarks are owned by The Capital Group Companies, Inc. or an affiliated company in Canada, the U.S. and other countries. All other company names mentioned are the property of their respective companies.
Capital Group funds are offered in Canada by Capital International Asset Management (Canada), Inc., part of Capital Group, a global investment management firm originating in Los Angeles, California in 1931. 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.