Investment insights from Capital Group
Perceived prevalence of greenwashing within asset management since 2021
Areas where AI is expected to most aid ESG analysis
AI-related ESG risks that investors view as most material
Fixed Income
Global Equities
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Glossary
Active vs. passive – ‘Active funds’ are managed by managers who attempt to surpass an index over time, while ‘passive funds’ track an index.
Greenwashing – Interpretations of what constitutes greenwashing can vary, but broadly the term relates to giving a misleading impression on the ESG or sustainability characteristics of a product, activity or organization.
Leaders – Best-in-class companies in sustainable sectors with high ESG ratings.
Natural language processing (NLP) – A subfield of artificial intelligence (AI) that uses machine learning to enable computers to interpret, and communicate with, human language.
Risk-adjusted return – A calculation of the gain, or potential gain, from an investment that considers the degree of risk that must be accepted to achieve it.
Sovereign/sovereign investors – Refers to investors that are either sovereign States themselves or are intrinsically linked to a sovereign State, the most common types of which are State-owned enterprises (SOEs) and sovereign wealth funds (SWFs).
Style – In investing, style refers to the investment approach or objective that an asset manager uses with the ultimate goal of generating returns.
Thematic investing – A form of investment that aims to identify macro-level trends, such as lean energy or technology, and the underlying investments that stand to benefit from those trends materializing.
Transitioners – Companies looking to transition their business models to a sustainable future.
All data attributed to Capital Group and ESG Global Study 2024 unless otherwise stated.
Past results are not a guarantee of future results. 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.