Five perspectives on ESG in bond investing - Capital Group

Shining a light on ESG in bond investing.

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... Equity investors often take the spotlight when it comes to discussing and considering environmental, social and governance-related (ESG) developments. An ownership stake often fuels interest in the company’s strategic plans, while proxy voting confers the opportunity to vote on key decisions.

What is not so widely discussed is that, as lenders, bond investors can also have distinctive and insightful perspectives on ESG. Furthermore, bond investors operate in an investment universe that includes types of issuers that don’t exist for investors in public equities, such as privately held firms and governments.

Against this backdrop, five of Capital Group's fixed income investment professionals share their experiences of considering and discussing material ESG matters with issuers. From emissions disclosures to employee safety and the potential financial benefits of good governance, these five perspectives shine a light on how ESG integration can shape long-term investment thinking.

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