ESG

ESG that thinks not just in years, but in decades

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ESG DISCLOSURES

Learn more about Capital Group's ESG policy statement, proxy voting guidelines, industry-related initiatives and other disclosures here.


Key term glossary

Corporate bond: A type of debt security issued by a corporation in order to raise financing for a variety of reasons, such as ongoing operations, expansions or mergers and acquisitions.

Engagement: The process whereby companies connect with their shareholders. The process typically includes participating in quarterly investor calls or in-person meetings. From an asset manager’s perspective, engagements are conducted to exchange views on material issues and gain a better understanding of the company, all with a view to protecting and growing the value of investments for the benefit of fund shareholders.

Environmental, social and governance (ESG): A set of considerations related to environmental, social and governance issues that could have a material impact on the value of an investment over time.

Governance: The system of rules, practices and processes by which a company or issuer is directed and controlled, typically through a board of directors and company management.

Issuer: A legal entity that develops, registers and sells securities to finance its operations. Issuers may be corporations, investment trusts, or governments.

Material: ESG-related issues that are likely to affect the value of an investment over time.

Municipal bond: Debt security issued by a state, municipality or county to finance its capital expenditures, including the construction of highways, bridges or schools.

Proxy voting: A proxy vote authorizes a person or firm to cast a vote on behalf of the issuing company’s shareholder. Proxies typically are used by shareholders to elect a company’s board of directors, select independent auditors, approve executive compensation, and vote on other management- or shareholder-sponsored proposals.

Sovereign bond: A debt security issued by a national government.

Third-party data: Data provided by external vendors or data aggregators. Sources of data include company reports and proxy statements. Other sources include government databases, NGO reports, financial news, social media and company reviews.

*As of December 31, 2024, monitoring applies to corporate, sovereign and select municipal bond holdings.

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.
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