Climate Change Data

Capital Group

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Climate Goals & Targets

Environmental Challenges

  • Lack of robust ESG data
  • Concerns about sacrificing returns
  • Concerns over greenwashing
  • Complex/confusing regulatory landscape
  • Lack of suitable products/strategies
  • Inconsistent ESG scores from different providers
  • Difficulties accessing ESG information and data
  • Difficulties monitoring and measuring the performance of ESG investments
Mitigation Strategies
  • Active managers using fundamental analysis to identify true ESG value
  • Standardisation of tools and data from different providers
  • Consistent data from asset managers
  • More automated analysis tools for ESG data
  • Ongoing ESG education and training from employers
  • Increased transparency and consistency in ESG fund reporting

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Governance
  • Social
  • Environmental

Environmental Achievements

  • Added additional climate resources and data to support research and analysis.

Social Achievements

  • Expanded monitoring process in fixed income and refreshed ESG investment frameworks.
  • Engaged with 650+ companies on ESG topics.

Governance Achievements

  • Sent engagement letters to over 450 companies globally following proxy voting season.
  • Prioritized engagement on issues to be voted on again (e.g., director election and compensation).

Climate Goals & Targets

Environmental Challenges

  • Increasingly prescriptive nature of shareholder proposals.
  • Governance concerns in Mexico (lower governance scores compared to peers).
Mitigation Strategies
  • Case-by-case approach in voting shareholder resolutions (considering company actions, disclosures, and proposal prescriptiveness).
  • Research trip to Mexico to meet with government entities, corporates, and political analysts to understand governance risks and opportunities.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD