Our investment professionals and environmental, social and governance (ESG) specialists take on topics that matter.
ESG-related issues have long been considered within The Capital System™, even if they haven’t always been labeled in this way. New data, tools and investment frameworks are helping us to better integrate ESG considerations into our investment process and develop deeper insights on those issues that we view as financially material.
When it comes to environmental, social and governance (ESG) considerations, bond investors can have distinctive and insightful perspectives. Five quick takes from Capital Group’s global bond investment team shine a light on ESG integration in bond investing.
ESG adoption among U.S. financial professionals is broad, but shallow. Capital Group’s Strategy and Innovation team connected with over 1,000 financial professionals and 1,000 investors to uncover 10 key findings on how the ESG landscape is evolving.
Research has always been at the heart of our investment approach. Rob Lovelace, vice chair and president of Capital Group, discusses how we integrate ESG into our investment process, The Capital System™, and the importance of ESG considerations for long-term investors.
Ratings from third-party providers can vary widely because of different methodologies and data; they can also miss nuances that bottom-up fundamental research discerns. We consider ratings as one of many inputs, but always go deeper – using proprietary tools, frameworks and insights to evaluate material ESG issues.
Evaluating material ESG risks and opportunities is embedded into our investment approach, The Capital System™. Our three-part process enhances our bottom-up, fundamental research and emphasizes materiality at the individual-issuer level.
Research & Investment Frameworks
Reflect material ESG considerations in
Uses available third-party data to flag our corporate and sovereign holdings that may require further research and review.
Engagement & Proxy Voting
Involves engaging with issuers on material ESG risks and opportunities and voting proxies in the best interest of our clients.
Our integrated approach to ESG is powerful. The process is continually refined, shining a light on materiality and helping us focus on the most relevant ESG-related risks and opportunities.
Put simply, we believe that integrating ESG analysis into our investment process is a crucial aspect of delivering superior long-term investment outcomes.
For ESG, taking the long view is crucial. We’ve been long-term investors for 91 years.
DEDICATED ESG TEAM
We have 40+ ESG specialists and 25+ data scientists focused on proprietary research, tools and analysis.
Our 475 investment professionals across the globe embed material ESG considerations into their research.
Rob Lovelace, vice chair and president of Capital Group, and Jody Jonsson, vice chair and president of Capital Research and Management Company, explain how ESG is weaved into The Capital System and how, at Capital Group, we're seeking to hold ourselves accountable, too.
Find real-world examples of our engagement and proxy voting efforts.
Explore our climate report aligned to the Task Force on Climate-related Financial Disclosures (TCFD).
See how we're investing in our people, communities and the environment.
The UN Global Compact and UK stewardship code are just two of the industry-related initiatives that we've joined. Learn more and also find our ESG policy statement and global proxy policy here.
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