Analysis of material sustainability and governance issues, alongside other considerations, helps us identify investment risks and opportunities. They can be, but are not necessarily, determinative to an investment decision.
Our approach
Our approach
We analyze material sustainability and governance issues as a part of our investment research to better understand long-term risks and opportunities as we strive to maximize returns for our investors.
Deciding what issues matter most
Evaluating material sustainability and governance risks and opportunities is embedded into our investment approach, The Capital System™. Our three-part environmental, social and governance (ESG) integration process enhances our investment research and emphasizes materiality at the individual-issuer level.
Research & Investment Frameworks
Reflect material sustainability and governance considerations in
25+ sectors.
Monitoring Process
Uses available third-party data to flag a subset of investments in certain asset classes* for further research and review.
Engagement & Proxy Voting
Involves engaging with issuers on material sustainability and governance risks and opportunities and voting proxies solely in the financial interests of our clients.
Why Capital Group
We identify investment opportunities with deep research and analysis, through partnership between investment professionals and the Sustainability & Governance team. Analyzing material risks and opportunities (including those that relate to sustainability and governance topics) is a crucial aspect of how we assess an issuer's long-term potential to generate value.
Long term
Taking the long view is crucial. We’ve been long-term investors for 90+ years.
Dedicated team
Our 40+ sustainability and governance professionals focus on proprietary research and analysis.
Integrated
Our portfolio managers and investment analysts work to integrate material sustainability and governance considerations in their investment decision making.
Data as of December 31, 2025.
RESOURCES
Reports and disclosures
Sustainability and governance at Capital Group
Learn more about how Capital Group's research-driven investment approach integrates material sustainability and governance risks and opportunities.
DISCLOSURES
Learn more about Capital Group's ESG policy statement, proxy voting guidelines, industry-related initiatives and other disclosures here.
Key term glossary
Corporate bond: A type of debt security issued by a corporation in order to raise financing for a variety of reasons, such as ongoing operations, expansions or mergers and acquisitions.
Engagement: The process whereby companies connect with their shareholders. The process typically includes participating in quarterly investor calls or in-person meetings. From an asset manager’s perspective, engagements are conducted to exchange views on material issues and gain a better understanding of the company, all with a view to protecting and growing the value of investments for the benefit of fund shareholders.
Sustainability and governance: A set of considerations related to environmental, social and governance (ESG) issues that could have a material impact on the value of an investment over time.
Governance: The system of rules, practices and processes by which a company or issuer is directed and controlled, typically through a board of directors and company management.
Issuer: A legal entity that develops, registers and sells securities to finance its operations. Issuers may be corporations, investment trusts, or governments.
Material: An issue is "material" if it could reasonably be considered to affect the value of an investment over time.
Proxy voting: A proxy vote authorizes a person or firm to cast a vote on behalf of the issuing company’s shareholder. Proxies typically are used by shareholders to elect a company’s board of directors, select independent auditors, approve executive compensation, and vote on other management- or shareholder-sponsored proposals.
Sovereign bond: A debt security issued by a national government.
Third-party data: Data provided by external vendors or data aggregators. Sources of data include company reports and proxy statements. Other sources include government databases, NGO reports, financial news, social media and company reviews.
Footnotes/Important information:
*As of September 30, 2026, monitoring applies to holdings of corporate (equity and fixed income) and sovereign bonds.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses.
This and other important information is contained in the fund prospectuses and/or summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
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.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Advisory services offered through Capital Research and Management Company (CRMC) and its RIA affiliates. Capital Client Group, Inc., member FINRA.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
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