PERSPECTIVES
Must-read ESG insights and much more
Our investment professionals and environmental, social and governance (ESG) specialists take on topics that matter.
Your question
What is ESG integration?
Our insight
The most widely used implementation strategy among global investors, ESG integration focuses on identifying the ESG risks and opportunities that are likely to affect the longer term value of an investment. ESG Investment Director Jayme Colosimo discusses the growing role of ESG integration in idea generation, research and engagement with issuers.
Your question
Why consider ESG?
Our insight
Capital Group’s investment approach considers material ESG risks and opportunities. By “material,” we mean those ESG-related considerations that are likely to affect the value of an investment over time. Incorporating financially material ESG information into research and analysis can, in our view, help improve long-term outcomes for investors.
Your question
Can human capital affect investment value?
Our insight
The short answer is yes. Our research suggests human capital management is potentially one of the most underappreciated drivers of business value. As ESG senior manager Emma Doner explains, tight labour markets, changing demographics and new regulation suggest it’s becoming an even more important investment consideration.
Your question
Is ESG just a new investment fad?
Our insight
ESG-related issues have long been considered within The Capital SystemTM, even if they haven’t always been labeled in this way. New data, tools and investment frameworks are helping us to better integrate ESG considerations into our investment process and develop deeper insights on those issues that we view as financially material.
OUR APPROACH
Deciding what ESG issues matter most
Evaluating material ESG risks and opportunities is embedded into our investment approach, The Capital System™. Our three-part process enhances our bottom-up, fundamental research and emphasizes materiality at the individual-issuer level.
Research & Investment Frameworks
Reflect material ESG considerations in
25+ sectors.
Monitoring Process
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.
WHY CAPITAL GROUP?
Striving for a superior ESG process
Put simply, we believe that integrating ESG analysis into our investment approach is a crucial aspect of delivering superior long-term investment outcomes.
LONG TERM
For ESG, taking the long view is crucial. We’ve been long-term investors for 93 years.
DEDICATED ESG TEAM
We have 45+ ESG specialists and 20+ data scientists focused on proprietary research, tools and analysis.
INTEGRATED
Our 360 portfolio managers and investment analysts across the globe embed material ESG considerations into their research.
Source: Capital Group. Data as of December 31, 2023.
Analysis of material ESG issues, alongside other considerations, helps us identify investment risks and opportunities. They can be, but are not necessarily, determinative to an investment decision.
ESG DISCLOSURES
Commissions, trailing commissions, management fees and expenses all may be associated with investments in investment funds. Please read the prospectus before investing. Investment funds are not guaranteed or covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. For investment funds other than money market funds, their values change frequently. For money market funds, there can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Past performance may not be repeated.
Unless otherwise indicated, any Capital Group information referenced above reflects the Capital Group global organization.
Unless otherwise indicated, the investment professionals featured do not manage Capital Group‘s Canadian investment funds.
References to particular companies or securities, if any, are included for informational or illustrative purposes only and should not be considered as an endorsement by Capital Group. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds or current holdings of any investment funds. These views should not be considered as investment advice nor should they be considered a recommendation to buy or sell.
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 not be comprehensive or to provide advice. For informational purposes only; not intended to provide tax, legal or financial advice. We assume no liability for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon. The information contained herein has been supplied without verification by us and may be subject to change. Capital Group funds are available in Canada through registered dealers. For more information, please consult your financial and tax advisors for your individual situation.
All Capital Group trademarks are owned by The Capital Group Companies, Inc. or an affiliated company in Canada, the U.S. and other countries. All other company names mentioned are the property of their respective companies.
Capital Group funds are offered in Canada by Capital International Asset Management (Canada), Inc., part of Capital Group, a global investment management firm originating in Los Angeles, California in 1931. 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.