Risques

Synthèse

Sans objectif d’investissement durable

Ce Fonds promeut des caractéristiques environnementales ou sociales, mais n’a pas pour objectif l’investissement durable. Toutefois, CRMC (le « Conseiller en investissement ») s’engage à conserver au moins 40 % des investissements du Fonds dans des sociétés qui, selon lui, relèvent des défis sociaux et/ou environnementaux par le biais de ses produits et/ou services actuels ou futurs.

Caractéristiques environnementales ou sociales des produits financiers

Le Fonds promeut des caractéristiques environnementales et sociales par le biais du processus d’investissement du Conseiller en investissement, qui applique une évaluation d’éligibilité et une Politique de filtrage négatif.

Stratégie d’investissement

Le Fonds investit dans des sociétés dont les produits sont majoritairement alignés, ou en cours de transition vers un alignement plus important, sur une ou plusieurs thématiques d’investissement durable axées sur les défis sociaux et environnementaux mondiaux identifiés par le Conseiller en investissement. Ces thématiques correspondent aux Objectifs de développement durable (ODD) des Nations unies. Afin d’identifier les sociétés éligibles, le Conseiller en investissement effectue une évaluation basée sur des recherches ascendantes exclusives réalisées par ses équipes d’investissement et ses équipes ESG. Cette évaluation d’éligibilité repose sur les « Caractéristiques » (qui déterminent si les produits et services contribuent aux ODD) et les « Normes » (qui examinent la gestion des risques ESG importants et de la bonne gouvernance) sectorielles du Conseiller en investissement. Le Fonds investit dans des sociétés « Alignées », dont la moitié au moins des activités sont actuellement alignées, ainsi que dans des sociétés « en Transition », dont le Conseiller en investissement estime qu’elles sont en train de rediriger activement leur activité vers un alignement positif plus important sur les thématiques d’investissement durable identifiées par le Conseiller en investissement et sur les ODD, avec la prévision d’une évolution significative à court ou moyen terme.

Le Conseiller en investissement applique en outre des exclusions ESG et normatives afin d’assurer l’application d’une Politique de filtrage négatif aux investissements du Fonds au moment de l’achat.

Capital Group a mis au point une série de critères permettant afin d’évaluer si une entreprise cause un préjudice important dans le but de déterminer si l’investissement constitue un investissement durable. Le Fonds prend en considération les PIN obligatoires visées au Tableau 1 de l’Annexe I du Règlement délégué (UE) 2022/1288 de la Commission pour les investissements en titres d’entreprises, ainsi que d’autres risques et controverses ESG que le Conseiller en investissement estime potentiellement importants conformément aux Normes sectorielles susmentionnées, comme les questions de confidentialité des données ou de censure.

Dans le cadre de l’évaluation des pratiques de bonne gouvernance, le Conseiller en investissement tient compte au minimum des éléments qu’il estime pertinents pour les quatre piliers prescrits de la bonne gouvernance (à savoir les structures de gestion, les relations avec les employés, la rémunération du personnel et la conformité fiscale).

Proportion d’investissements

Au moins 90 % des investissements du Fonds sont utilisés pour atteindre les caractéristiques environnementales ou sociales qu’il promeut (catégorie #1 « Alignés sur les caractéristiques E/S »). Le Fonds comptera au minimum 60 % dans la sous-catégorie « #1A Durables » et au maximum 40 % dans la catégorie « #1B Autres caractéristiques E/S ». Au maximum 10 % des investissements du Fonds, qui incluent les investissements non alignés sur les caractéristiques E/S et/ou les produits dérivés, se trouvent dans la catégorie « #2 Autres ». Les espèces et quasi-espèces ne sont pas reprises dans les pourcentages d’actifs indiqués ci-dessus. Elles peuvent être détenues à des fins de liquidité.

Contrôle des caractéristiques environnementales ou sociales

Les indicateurs de durabilité utilisés par ce Fonds pour mesurer la réalisation de chacune des caractéristiques environnementales ou sociales sont les suivants :

• Si les émetteurs privés respectent les critères stipulés dans la Politique de filtrage négatif ; Le pourcentage d’investissements dont au moins 50 % des revenus sont conformes aux ODD ; et
• Le pourcentage d’investissements dans des entreprises considérées comme « en Transition ».

Méthodes

Le Fonds met en œuvre deux critères ESG contraignants : des filtres sectoriels et normatifs qui se traduisent par des exclusions et l’engagement à réaliser des investissements durables.

Sources et traitement des données

Le Fonds utilise plusieurs sources de données y compris, mais sans s’y limiter, les recherches de filtrage de l’implication ESG des entreprises de MSCI (« ESG de MSCI ») et la liste MSCI des émetteurs en violation du Pacte mondial des Nations unies. Il est toutefois possible que ces données ne saisissent pas l’univers complet des activités d’un émetteur, qu’elles changent soudainement, qu’elles soient imparfaites, inexactes, incomplètes ou dépassées, avec pour résultat un investissement par un Fonds dans un émetteur dont les investisseurs pourraient supposer l’exclusion. Capital Group prend en permanence des mesures de diligence raisonnable à l’égard des sources de données tierces et s’efforce de s’assurer de la fiabilité des données de tiers. Si le Conseiller en investissement est convaincu que des données et/ou des évaluations sont incomplètes ou inexactes, il se réserve le droit d’identifier les activités d’implication des entreprises concernées par le biais de sa propre évaluation.

Limites aux méthodes et aux données

La méthodologie et les sources relatives aux exclusions et à l’approche de l’intégration ESG dans leur ensemble présentent certaines limites. Afin d’identifier toutes les sociétés cotées en bourse dans le monde qui exercent des activités telles que la production de produits controversés et dont les revenus proviennent d’activités incompatibles avec les filtres ESG et normatifs, le Fonds utilise des critères ESG et des exclusions qui sont principalement définis par des fournisseurs tiers.

Diligence raisonnable

Les membres des services de conformité réglementaire, de gestion du risque et d’audit interne de Capital Group réalisent des évaluations périodiques de la conception et de l’efficacité opérationnelle des activités et des principaux contrôles de l’entreprise. Cela suppose de se conformer aux processus et procédures internes ainsi qu’au cadre réglementaire des juridictions dans lesquelles la société opère.

Politiques d’engagement

La mise en place d’un dialogue avec les sociétés fait partie intégrante du service de gestion des investissements que le Conseiller en investissement assure pour ses clients. Lorsque l’équipe d’investissement de Capital Group identifie une problématique importante pour la valeur à long terme d’une entreprise en portefeuille ou qu’elle est préoccupée par la performance ESG relative, les professionnels de l’investissement et les équipes de gouvernance de Capital Group entament un dialogue collaboratif avec la direction.

Indice de référence désigné

Le Fonds n’a désigné aucun indice de référence en vue d’atteindre les caractéristiques environnementales et/ou sociales qu’il promeut.

The sustainability-related disclosures are meant to be revised as necessary from time to time to capture any changes or reviews. The capitalized terms are used in accordance with the definitions and references outlined in Capital International Fund Prospectus.

Capital International Fund - Capital Group Future Generations Global Corporate Bond Fund (LUX) (the “Fund”)

LEI: 5493008PZIMIIT0L0K15

The below section “Summary” was prepared in English and is being translated to other official languages of the European Economic Area. In case of any inconsistency(ies) or conflict(s) between the different versions of this section “Summary”, the English language version shall prevail.

Summary

No sustainable investment objective

This Fund promotes environmental or social characteristics, but does not have as its objective sustainable investment. However, CRMC (the “Investment Adviser”) commits to maintain at least 40% of the Fund’s investments in companies that, in the Investment Adviser’s opinion, are addressing social and/or environmental challenges through their current or future products and/or services.

Environmental or social characteristics of the financial products

The Fund promotes environmental and social characteristics through the Investment Adviser’s investment process, which applies an eligibility assessment and a Negative Screening Policy.

Investment strategy

The Fund invests in companies whose products and services are majority-aligned, or transitioning towards higher positive alignment, with any single or combination of sustainable investment themes focused on global social and environmental challenges as identified by the Investment Adviser. These themes map to the United Nations Sustainable Development Goals (“SDGs”). To identify eligible companies, the Investment Adviser performs an assessment that relies on bottom-up proprietary research conducted by the Investment Adviser’s investment and ESG teams. This eligibility assessment is underpinned by the Investment Adviser’s sector-level “Characteristics” (which assess whether products and services contribute to the SDGs) and “Standards” (which examine management of material ESG risks and good governance). The Fund invests in ‘Aligned’ companies that currently have at least half of their business aligned, as well as ‘Transitioning’ companies that the Investment Adviser believes are actively transitioning their business to higher positive alignment with sustainable investment themes as identified by the Investment Adviser and with the SDGs, with material near-to-medium term change expected.

In addition, the Investment Adviser applies ESG and norms-based exclusions to implement a Negative Screening Policy to the Fund’s investments at the time of purchase.

Capital Group has developed a set of criteria to assess whether a company does significant harm to determine whether the investment constitutes a sustainable investment. The Fund considers the mandatory PAIs as set out in Table 1 of Annex I of Commission Delegated Regulation (EU) 2022/1288 for corporate investments, as well as other ESG risks and controversies that the Investment Adviser considers potentially material as outlined in the sector-level Standards described above, such as data privacy or censorship issues.

When assessing good governance practices, the Investment Adviser will, as a minimum, have regard to matters it sees relevant to the four prescribed pillars of good governance (i.e., sound management structures, employee relations, remuneration of staff and tax compliance).

Proportion of investments

At least 90% of the Fund's investments are used to attain the environmental or social characteristics promoted by the Fund (#1 Aligned with E/S characteristics). The Fund will have a minimum proportion of 60% in the sub-category “#1A Sustainable”, and a maximum of 40% will be in category “#1B Other E/S characteristics”. A maximum of 10% of the Fund’s investments, including investments non-aligned with the E/S characteristics promoted and/or derivatives are in category “#2 Other”. Cash and cash-equivalents are not included in the % of assets set out above. They may be held for liquidity purposes.

Monitoring of environmental or social characteristics

The sustainability indicators used by this Fund to measure the attainment of each of the environmental or social characteristics it promotes are the following:

• Adherence of corporate issuers to the criteria set forth in the Negative Screening Policy Percentage of investments having at least 50% of their revenue aligned with the SDGs, and
• Percentage of investments in companies considered as “Transitioning”.

Methodologies

The Fund implements two binding ESG-related criteria: sector- and norms-based screens in the form of exclusions and a commitment to make sustainable investments.

Data sources and processing

The Fund uses several data sources including, but not limited to, MSCI ESG Business Involvement Screening Research (“MSCI ESG”) and MSCI United Nations Global Compact violators. However, such data might not capture the full universe of activities of an issuer, change suddenly, be flawed, inaccurate, incomplete or outdated, resulting in a Fund’s investment in an issuer which an investor may expect to be excluded. Capital Group performs ongoing due diligence on third-party data sources and endeavours to ensure that third-party data is reliable. In the event that the Investment Adviser believes that data and/or assessment is incomplete or inaccurate, the Investment Adviser reserves the right to identify relevant business involvement activities through its own assessment.

Limitations to methodologies and data

The methodology and sources relating to the exclusions and the ESG integration approach as a whole have certain limitations. In order to identify all publicly traded companies globally which are involved in activities such as the production of controversial products and revenue derived from activities that are inconsistent with the ESG and norms-based screens, the Fund uses ESG criteria and exclusions that are primarily identified through third-party providers.

Due diligence

Members of Capital Group's compliance, risk management and internal audit staff conduct periodic assessments on the design and operating effectiveness of the firm’s activities and key controls. This includes compliance with internal processes and procedures as well as with the regulatory landscape in the jurisdictions in which the company operates.

Engagement policies

Establishing dialogue with companies is an integral part of the Investment Adviser’s investment management service to clients. Where Capital Group's investment teams identify an issue material to the long-term value of an investee company or they are concerned about relative ESG performance, Capital Group's investment professionals and governance teams will engage with management.

Designated reference benchmark

The Fund has not designated a reference benchmark to meet the environmental and/or social characteristics it promotes.

No sustainable investment objective

This Fund promotes environmental or social characteristics but does not have as its objective sustainable investment. The Investment Adviser commits to maintain at least 60% of the Fund’s investments in companies that, in the Investment Adviser’s opinion, are addressing social and/or environmental challenges through their current or future products and/or services. This 60% minimum qualifies as “sustainable investments” under Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector.

How have the indicators for adverse impacts on sustainability factors been taken into account?

As mentioned above, the Investment Adviser considers all mandatory PAIs.

The Investment Adviser considers several PAIs within its Negative Screening Policy. In particular, the Negative Screening Policy addresses PAI 4 on exposure to companies active in the fossil fuel sector, PAI 10 on United Nations Global Compact violators and PAI 14 on controversial weapons.

Beyond the negative screening process, with respect to the remaining mandatory PAIs:

where the Investment Adviser considers sufficient and reliable quantitative data is available across the investment universe (for PAIs 1, 2, 3, 6, and 13), the Investment Adviser uses third-party data and prescribed thresholds to determine whether the adverse impact associated with the company’s activities is potentially significant based on the company’s relative ranking (on the specific adverse impact) to the overall investment universe and/or peer group; or

where data availability or quality is not sufficient across the investment universe to enable a quantitative analysis (for PAIs 5, 7, 8, 9, 10, 11, and 12), the Investment Adviser assesses significant harm on a qualitative basis, for example using proxies.

The Investment Adviser’s assessment will also include an overall qualitative assessment of how ESG risks are being managed.

Where third party data or the Investment Adviser’s qualitative assessment indicates that a company is potentially doing significant harm based on a PAI threshold, the Investment Adviser will do additional due diligence to better understand and assess negative impacts indicated by third party or proprietary data. If the Investment Adviser concludes that the company is not causing significant harm based on its analysis, it may proceed with the investment and the rationale for that decision will then be documented. For example, the Investment Adviser may conclude a company is not causing significant harm if (i) the Investment Adviser has reason to believe that third-party data is inaccurate and the Investment Adviser’s own research demonstrates that the company is not causing significant harm; or (ii) the company is taking steps to mitigate or remediate that harm through the adoption of timebound targets and there are meaningful signs of improvement and positive change.

How are the sustainable investments aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights? Details:

The sustainable investments are aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights as follows: the Investment Adviser reviews companies involved in significant ESG controversies, with a focus on those that may conflict with existing global standards, including guidelines from the United Nations Global Compact. In accordance with the Negative Screening Policy applied to the Fund, the Investment Adviser will exclude companies violating the UN Global Compact principles. Although other incidents will not automatically result in exclusion from the Fund, the Investment Adviser ensures that appropriate action to remediate the concerns are taken.

Environmental or social characteristics of the financial product

The Fund promotes environmental and/or social characteristics through the Investment Adviser’s investment process, which applies an eligibility assessment and a Negative Screening Policy.

The Fund invests in companies whose products and services are majority-aligned, or transitioning towards higher positive alignment, with any single or combination of sustainable investment themes focused on global social and environmental challenges as identified by the Investment Adviser. These themes map to the United Nations Sustainable Development Goals (“SDGs”).

To identify eligible companies, the Investment Adviser performs an assessment that relies on bottom-up proprietary research conducted by the Investment Adviser’s investment and ESG teams. This eligibility assessment is underpinned by the Investment Adviser’s sector-level “Characteristics” (which assess whether products and services contribute to the SDGs) and “Standards” (which examine management of ESG risks and good governance). The Fund invests in ‘Aligned’ companies that currently have at least half of their business aligned, as well as ‘Transitioning’ companies that the Investment Adviser believes are actively transitioning their business to higher positive alignment, with material near-to-medium term change expected.

In addition, the Investment Adviser applies ESG and norms-based exclusions to implement a Negative Screening Policy to the Fund’s investments at the time of purchase.

There is no reference benchmark designated for the purpose of attaining the environmental or social characteristics promoted by the Fund.

Investment strategy

The Investment Adviser applies the following investment strategy to attain the environmental and/or social characteristics promoted and the sustainable investment objective as follows:

The Fund invests in companies whose products and services are majority-aligned, or transitioning towards higher positive alignment, with any single or combination of sustainable investment themes focused on global social and environmental challenges as identified by the Investment Adviser. These themes map to the United Nations Sustainable Development Goals (“SDGs”). The themes map to the following key United Nations Sustainable Development Goals (“SDGs”):