Founded in 1931, Capital Group is a privately owned asset manager. As of December 31, 2021 it manages more than USD 2.7 trillion in equity and fixed income assets for investors and institutions worldwide and CAD 22 billion in Canada. Headquartered in Los Angeles, California, it has more than 8,000 employees across 32 offices in North America, Asia, Australia and Europe.
In terms of its approach towards impact management, Capital Group acknowledges that its financing activities have both positive and negative impacts. The financial institution discloses a target to increase the representation of women in the global senior manager population to at least 40% by 2025. The financial institution also has an engagement policy where it describes its approach on sustainability themes and impact topics with investees which includes a clear framework with success criteria and escalation points in the event that engagement with investees is unsuccessful. Additionally, the financial institution publishes its TCFD report describing how the engagement policy is applied in practice and publishes case studies describing where it has engaged successfully with investees on sustainability themes and impact topics.
As a member of the Net-Zero Asset Managers initiative Capital Group has set a target of net-zero financed emissions by 2050. The financial institution also discloses its process for identifying its nature- and biodiversity-related impacts across all its financing activities and states that nature- and biodiversity-related impacts is one of its engagement priorities with companies to which it provides financial services.
Capital Group describes the process for identifying human rights risks and impacts in its financing activities. The financial institution also discloses the proportion of women in its total direct operations workforce for each employee category. Additionally it discloses a public commitment to protect personal data. In a public policy statement, the financial institution discloses its approach to lobbying and political engagement and it specifies that it does not make political contributions.
In terms of its approach to senior leadership accountability, there is no evidence that Capital Group links the remuneration of its executive or management teams to sustainability performance criteria. With regard to gender equality, the financial institution also has an opportunity to reach at least 40% female representation in senior leadership positions and to make a public commitment to gender equality.
Capital Group could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. The financial institution also has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. Furthermore, there is no evidence that the financial institution discloses its financing activities devoted to climate solutions and that the financial institution is committed to minimising the negative impacts it has on nature and biodiversity.
With regard to bribery and corruption, there is no evidence that Capital Group describes the process for identifying its bribery and corruption risks and impacts in specific locations or activities covering its own operations and that it has a confidential and anonymous channel/mechanism accessible to all stakeholders to raise bribery and corruption concerns and complaints without fear of reprisals. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of investment directed towards, for example, low-income developing countries.