environmental-social-governance
PERSPECTIVES
Must-read ESG insights and much more
Our investment professionals and environmental, social and governance (ESG) specialists take on topics that matter.
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environmental-social-governance
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environmental-social-governance
Your question
Why consider ESG?
Our insight
Capital Group’s investment approach considers material ESG risks and opportunities. By material, we mean those ESG-related considerations that are likely to affect the value of an investment over time. Incorporating financially material ESG information into research and analysis can, in our view, help improve long-term outcomes for investors.
Your question
Is ESG just a new investment fad?
Our insight
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.
Your question
How do bond investors approach ESG?
Our insight
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.
Your question
What is Capital Group’s ESG philosophy?
Our insight
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.
Your question
Do ESG ratings give investors a clear view of how an issuer is faring?
Our insight
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.
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 bottom-up, fundamental research and emphasizes materiality at the individual-issuer level.
Research & Investment Frameworks
Reflect material ESG considerations in
30+ sectors.
Monitoring Process
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.
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 the most relevant ESG-related risks and opportunities.
WHY CAPITAL GROUP?
Striving for a superior ESG process
Put simply, we believe that integrating ESG analysis into our investment process is a crucial aspect of delivering superior long-term investment outcomes.
LONG TERM
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.
INTEGRATED
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.
Capital Group stewardship report
Find real-world examples of our engagement and proxy voting efforts.
Capital Group TCFD report
Explore our climate report aligned to the Task Force on Climate-related Financial Disclosures (TCFD).
Global citizenship and sustainability report
See how we're investing in our people, communities and the environment.
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Unless otherwise indicated, any Capital Group information referenced above reflects the Capital Group global organization.
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