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.
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 SystemTM, and the importance of ESG considerations for long-term investors.
Evaluating ESG risks and opportunities is embedded into our investment approach, The Capital SystemTM. Our three-part process enhances our bottom-up, fundamental research and emphasises materiality at the individual-issuer level.
Research & Investment Frameworks
Reflect material ESG considerations in 30+ sectors.
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.
Put simply, we believe that integrating ESG analysis into our investment process is a crucial aspect of delivering superior long-term investment outcomes.
For ESG, taking the long view is crucial. We’ve been long-term investors for 92 years.
DEDICATED ESG TEAM
We have 40+ ESG specialists and 25+ data scientists focused on proprietary research, tools and analysis.
Our 470+ 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 SystemTM and how, at Capital Group, we're seeking to hold ourselves accountable, too.