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
Why consider ESG when investing in government bonds?
Our insight
Low levels of corruption, social cohesion, the rule of law and effective government can set the stage for economic resilience and potentially reduce the risk of financial, political and social upheaval. Conversely, as ESG senior manager Claire Zeigler explains, less favorable ESG indicators could suggest greater sovereign default risk.
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.
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 emphasises 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.
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
Global Proxy Voting Guidelines
Compliance with the EU Regulation on Sustainability Disclosures
Task Force on Climate-related Financial Disclosures (TCFD) Report
Diversity, Equity and Inclusion and Sustainability Report
Statement on principal adverse impacts of investment decisions on sustainability factors
All data as at 31 December 2023 unless otherwise stated. Source: Capital Group