Important information

This website is for Institutional Investors in Middle-east only.

 

If you are an Individual Investor click here, if you are an Financial Intermediary click here. Should you be looking for information for another location, please click here.

 

By clicking, you acknowledge that you have fully understood and accepted the Legal and Regulatory Information.

ESG Our approach to monitoring ESG issues in sovereign debt research

Claire Zeigler Neha Mohanty

25 May 2026

KEY TAKEAWAYS

  • We believe that considering potentially material environmental, social and governance (ESG) issues in sovereign debt investment research is an important part of assessing the ability of a government to repay bond investors. 
  • Our recent review found a significant relationship between emerging market (EM) sovereign debt spreads and the metrics used in our sovereign monitoring framework.
  • We also conducted backtests on additional datasets – including sovereign emissions and transition targets data. We found that these metrics are not currently priced in EM sovereign debt spreads. 
  • Although these metrics do not appear to be currently priced in and are not covered by our sovereign ESG monitoring framework at this time, we believe their relationship with EM spreads could evolve over time. We have therefore incorporated sovereign emissions and access to ASCOR’s transition data into our proprietary EM Live platform to enable closer tracking.

Monitoring for material ESG risks

Explore how we complement our investment research with a proprietary approach to sovereign monitoring.

DOWNLOAD ARTICLE

Explore the latest research and insights in our environmental, social and governance (ESG) perspectives library

Explore now

Claire Zeigler is an ESG integration lead for fixed income at Capital Group. She has 17 years of industry experience (as of 12/31/2025). She holds an MBA from UCLA Anderson School of Management and a bachelor's degree in economics from University of Southern California.

Neha Mohanty is an ESG analyst at Capital Group with six years of industry experience (as of 12/31/2025). She holds a bachelor's degree in economics from the University College London. She also holds the Chartered Financial Analyst designation.

Your gateway to all things ESG at Capital Group

LEARN MORE

Past results are not a guarantee of future results. It is not possible to invest directly in an index, which is unmanaged. 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. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

 

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. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

 

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.