ESG fueled by the power of 3

Our three-part process enhances our research by integrating material environmental, social and governance (ESG) issues.

Alt Text

Capital Group stewardship report

Find real-world examples of our engagement and proxy voting efforts.

Want to stay ahead of the curve?

Explore the latest research and insights in our ESG perspectives library.

Your gateway to all things ESG at Capital Group

 

*For corporate holdings, we use two data providers (MSCI and Institutional Shareholder Services Inc. (ISS)) and five different indicators to monitor and flag holdings. These indicators capture materially lower ESG performance relative to peers and potential violations of international norms via the UN Global Compact (UNGC) and Organisation for Economic Co-operation and Development (OECD) Guidelines. For sovereign holdings, our proprietary ESG score for an issuer is a weighted average of its raw scores from three data sources: Notre Dame Global Adaptation Initiative Climate Vulnerability Index, United Nations Human Development Index and World Bank Worldwide Governance Indicators. Historically, our methodology has most heavily weighted governance metrics. We have viewed “G” as typically more material for sovereigns because governance indicators can provide important signals about a country’s ability to meet its financial obligations. In the future, the relative importance of “E” and related “S” risks may increase.

**Capital Group's in-house tool, Ethos, helps enable investment analysts to identify areas of ESG risk and conduct rigorous security-level analysis and peer comparison.

^While monitoring and further engagement are the most frequent outcomes, divestment is a possibility. 

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
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. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
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 organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
The Morningstar average expense ratios are based on fund statistics for each fund's prospectus available at the time of publication. The expense ratio is one aspect of plan fees and expenses.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.