The UN SDGs were adopted by the United Nations in 2015 as a universal call to action by countries to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. In total there are 17 UN SDGs covering social, economic and environmental issues. Taking an investor’s perspective, we have distilled the 17 UN SDGs into seven sustainable investment themes in managing the funds.
Consider the investment potential when sustainability meets opportunity
We believe that the opportunities created by a transformational shift to a more sustainable world are broad and far-reaching, and may generate substantial tailwinds for companies focused on solving for sustainability.
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Some of the structural shifts driving the sustainable investing opportunity
The number of people over 60 will double by 2050
Source: World Health Organisation, as at October 2022
Nearly seven in ten people will live in cities by 2050
Source: World Bank, as at April 2023
More than 1.4 billion people globally remain unbanked
Source: World Bank, Global Findex Database, as at July 2022
Our sustainable investing approach
A global, multi-thematic approach
Offers access to rich and diverse investment opportunities and helps to capture the interconnected nature of sustainability.
A range of sustainable investment themes provides investors with the potential to achieve better risk-adjusted returns than single-themed sustainable strategies.
Combines aligned and transitioning companies
Any companies held in our sustainable funds will need to demonstrate material or increasing alignment to at least one of the United Nations Sustainable Development Goals (“UN SDGs”).
This means our portfolios will include some companies that our analysts believe are transitioning to higher positive alignment with one or several UN SDGs.
Powered by proprietary bottom-up research
Our deep, fundamental research draws on our global team of more than 475 investment professionals.
Our rigorous proprietary eligibility process combines the best of our investment team and ESG specialists and is central to our sustainable investment offering.
A company is considered ‘aligned’ if 50% of its business supports one or more of the UN SDGs. We typically use revenue to assess business alignment, but will leverage other metrics if there are more sector-relevant financial metrics for a company and its industry (e.g., energy production mix for utilities).
A multi-thematic approach with themes mapped to the UN SDGs
Our seven sustainable investment themes and examples of the investment opportunity
Our 7 themes can offer investors rich and diverse investment opportunities.
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Health & well-being
Pharmaceuticals; Biotechnology
Energy transition
Electric utilities with renewables generation; Electric vehicle (EV) auto and battery manufacturing
Sustainable cities & communities
Green building suppliers; Sustainable building products
Responsible consumption
Waste reduction, reuse and recycling; Chemical, waste and power management
Education & information access
Education providers; Internet, software and hardware providers expanding access to information
Financial inclusion
Banks and asset managers targeting under-served populations; Payment platforms
Clean water & sanitation
Water utilities; Chemical water treatment
References to the UN SDGs do not imply the endorsement by the UN of Capital Group, its products or services, or of its planned activities.
Capital Group: A research powerhouse
Few firms can match the scale and scope of our proprietary research.
475+
Investment professionals across equity and fixed income – collaborating globally
45+
Dedicated ESG professionals
20+
Data scientists and developers building our proprietary ESG tools
21,000+
Company shareholder meetings in 2022
Our sustainable strategies
Seeking to capture the diversification benefits from a global multi-thematic approach to long-term investment opportunities, across equity, fixed income and multi-asset.
Capital Group Sustainable Global Opportunities
Global equities
Capital Group Sustainable Global Corporate Bond
Global corporate bonds
Capital Group Sustainable Global Balanced
Global 60:40 balanced portfolio
WHY CAPITAL GROUP
A product range backed by one of the world’s largest active investment managers
US$2.5T
in total assets managed
28 years
average investment industry experience of our equity and fixed income portfolio managers
90+ years
of active investing since 1931
As at 31 December 2023. Source: Capital Group. 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 organisation; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups. The three equity investment groups and fixed income investment group conduct engagement activities independently as well. Where applicable, fixed income assets are managed by Capital Fixed Income Investors.
Learn more about our sustainable investing philosophy
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The Funds are not authorised in Hong Kong. The information is provided for reference only. It must not be circulated outside of your organisation or passed on to any third parties.
*The Capital Group Sustainable Funds are not approved or recognised as ESG funds in Hong Kong. The funds have adopted Sustainable Financial Disclosure Regulation (SFDR) requirements since their launch on 27 February 2024. The SFDR classification is related to the European Union’s regulation and is not equivalent to approval or recognition as an ESG fund by regulators in Asia-Pacific.
WARNING:
Professional investors in Hong Kong should read carefully the Hong Kong Supplement and the accompanying Prospectus (“Hong Kong Private Offering Document”) before making an investment decision. This material and the Hong Kong Private Offering Document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in doubt about the contents of this material and/or the Hong Kong Private Offering Document, you should obtain independent professional advice.
Participating Shares may not be offered or sold in Hong Kong by means of this Placing Memorandum or any other document other than to persons who are “professional investors” as defined in the Hong Kong Securities and Futures Ordinance (“SFO”) and rules made thereunder or in circumstances which do not constitute an offer to the public for the purposes of the SFO or any other applicable legislation in Hong Kong.
All information as at 31 December 2023 and attributed to Capital Group, unless otherwise specified. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.
Any 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.
Risk factors you should consider before investing:
- This material is not intended to provide investment advice or be considered a personal recommendation.
- The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
- Past results are not a guide to future results.
- If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
- The Prospectus – together with any locally-required offering documentation – set out risks, which, depending on the fund, may include risks associated with investing in fixed income, derivatives, emerging markets, and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.
- Some funds may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management.