*Capital Group's 2023 ESG Global Study of 1,130 investment professionals across 25 countries, conducted from March - May 2023.
†Categorizations based on Broadridge Global Market Intelligence Responsible Investing Categories, abridged definitions below. For full definitions, please contact Broadridge Global Market Intelligence.
ESG Integration: strategies that systematically integrate ESG into investment decision-making processes and/or employ proactive voting/engagement strategies.
Positive screening: strategies which pick companies that have the best ESG score for a particular sector and weighting allocations to companies with better ESG scores (tilts).
Negative screening (exclusions): strategies which apply exclusions to the portfolio over and above the standard screens on controversial weapons, exclusions of certain sectors, companies or practices based on ESG criteria, or norms-based screening approach.
Sustainable investing: includes a variety of thematic-focused strategies, including single-theme and multi- thematic funds, and strategies with low carbon footprint as an explicit target.
Impact investing: strategies that explicitly target generating a positive impact on sustainable developments alongside financial return and include green-and-social-bond strategies. This predominantly applies to private equity and other illiquid products.
Undefined: other ESG-related strategies which are undefined.
‡Jason Woods, Nelson James, Eric Kozubal, Eric Bonnema, Kristin Brief, Liz Voeller, Jessy Rivest. “Humidity’s impact on greenhouse gas emissions from air conditioning.” Joule, Volume 6, Issue 4, 2022.
Asset Allocation
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