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
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 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.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
American Funds Distributors, Inc.
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.