PERSPECTIVES
Must-read ESG insights and much more
Our investment professionals and environmental, social and governance (ESG) specialists research topics with potential implications on long-term investment risks and opportunities.
OUR APPROACH
Deciding what ESG issues matter most
Evaluating material ESG risks and opportunities is embedded into our investment approach, The Capital System™. Our three-part process enhances our invesment research and emphasises materiality at the individual-issuer level.
Research & Investment Frameworks
Reflect material ESG 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 ESG risks and opportunities and voting proxies solely in the financial interests of our clients.
How the power of 3 enhances our bottom-up research
Our integrated approach to ESG is powerful. The process is continually refined, shining a light on materiality and helping us focus on financially relevant ESG-related risks and opportunities.
WHY CAPITAL GROUP?
Our integrated ESG approach
We identify investment opportunities through deep research and analysis, through partnership between investment professionals and the ESG team. Analysing material risks and opportunities (including those that relate to ESG topics) is a crucial aspect of how we assess an issuer's long-term potential to generate value.
LONG TERM
For ESG, taking the long view is crucial. We’ve been long-term investors for 93 years.
DEDICATED ESG TEAM
We have 40+ ESG specialists and 20+ data scientists focused on proprietary research, tools and analysis.
INTEGRATED
Our portfolio managers and investment analysts work to integrate material ESG considerations in their investment decision-making.
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.
ESG DISCLOSURES
*As at 31 December 2024, monitoring applies to corporate, sovereign and select municipal bond holdings.
All data as at 31 December 2024 unless otherwise stated. Source: Capital Group