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Capital Group

PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (C) Implementation: Integration of ESG factors

(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]


LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

          Our ESG and Governance and Proxy teams also engage with analysts and PMs to ensure we are integrating ESG considerations into our investment process.
        

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

          Material ESG information that is relevant for a specific investment idea is incorporated into our analysts' investment research and / or recommendations.
        

09.6. Additional information. [Optional]


LEI 10. Aspects of analysis ESG information is integrated into

New selection options have been added to this indicator. Please review your prefilled responses carefully.

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis.

          see LEI 01.2
        

10.3. Describe how you integrate ESG information into portfolio weighting.

Portfolio construction decisions, such as sector and industry allocation, can be influenced by ESG considerations. For example, climate change may influence energy sector allocation, the energy companies selected and their relative weightings.

When determining position weights, our portfolio managers consider the high-quality characteristics of a company, including ESG factors, as well as risk and fund/ strategy objectives, among other considerations.

10.4. Describe the methods you have used to adjust the income forecast/valuation tool.

Valuation models are constructed for each and every holding in our portfolios and are based on thorough, rigorous fundamental research and in-house analytics. Material ESG issues are evaluated alongside of financial valuations to inform our analysts' judgements on an investment's prospects for long-term success.

10.6. Additional information. [OPTIONAL]


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