Sustainability and Corporate Social Responsibility at Capital Group

ESG at Capital Group:
We believe ESG is key to successful investing. So we consider environmental, social and governance factors before we invest. For nearly 90 years, our mission has been to improve people's lives through successful investing. We believe that considering ESG factors leads to better long-term results for investors.

ESG is embedded into our investment process:
Three key elements — our research frameworks, monitoring process and active engagement — are part of our investment approach, The Capital System, which can help us deliver better long-term results.

Research frameworks:
Drawing on deep research, our analysts identify the ESG issues that are material to each sector.

Environmental Sustainability

A grassroots effort to reduce paper and electricity use has evolved over three decades into our global CG Green program. Each office addresses its particular needs, and all of us strive to become better environmental citizens. We are finding ways to reduce, reuse and recycle, and are lowering our energy use and CO2 emissions.

Our ESG approach: ESG is foundational to how we invest.

A fully integrated approach: At Capital Group, ESG is part of our investment process, not a separate product. ESG considerations are woven into The Capital SystemSM and factor into our fundamental research, due diligence and engagement. We believe our approach can help you achieve better results over time.

How it works:
We designed our ESG approach to identify the issues that can matter most to investors. It is built on three tightly woven parts: our own research frameworks, multilayered monitoring and ongoing engagement with companies. Each element reinforces the others, which makes the system smarter over time.

30+ Sector Frameworks, 200+ Analysts, 14 Years of Tenure:
We look beyond third-party data and spend thousands of hours on our own research. With an average 14 years of experience, our analysts understand the challenges of each industry they cover. They know the right questions to ask. Our sector-specific research frameworks focus on the most important ESG issues when evaluating a potential investment.

We use industry-leading third-party information, but that's just the start. To decide which investments raise potential ESG issues, we apply widely accepted third-party standards and then expand on that with our own deep research.

The breadth and depth of our on-the-ground research coverage mean we don't always agree with conventional ratings.

Our monitoring process: ESG data integration, risk identification and flagging, evaluation and documentation, escalation and review.

Community Impact and Philanthropy

Capital Group’s global citizenship:
As stewards of our investors' savings, we hold ourselves accountable to the same high standards we expect of the companies in which we invest. Learn how we apply ESG principles within our own four walls and how we demonstrate our values by investing in our associates, communities and environment.

Investing in our communities, environment, our people and on behalf of our clients.

Our associates work to improve the world around them. We've channeled their diverse passions to create Capital Cares. The collective of philanthropic programs represents a global spectrum of causes and interests.

During fiscal year 2020:
-Associates volunteered nearly 73,000 hours, supporting a wide range of worthy efforts.
-We donated $30.5 million through our associate-driven programs.
-Our Matching Gifts program offers a $2 for $1 match, and 30% of associates participated.