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.
PERSPECTIVES
Our investment professionals and environmental, social and governance (ESG) specialists research topics with potential implications on long-term investment risks and opportunities.
OUR APPROACH
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.
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?
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.
For ESG, taking the long view is crucial. We’ve been long-term investors for 94 years.
Our 40+ ESG professionals focus on proprietary research and analysis.
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.
*As at 31 December 2025, monitoring applies to holdings of corporate (equity and fixed income), sovereign bonds and select municipal bonds.
All data as at 31 December 2025 unless otherwise stated. Source: Capital Group