Capital Group

InfluenceMap Score
D
Performance Band
51%
Organisation Score
45%
Relationship Score
Sector:
Financials
Head​quarters:
Official Web Site:
Wikipedia:

Capital Group appears to have had somewhat limited engagement on sustainable finance policies, generally supporting regulated ESG corporate disclosure but appearing cautious toward other forms of regulation. Capital Group has recognized the risks climate change poses to the financial system, but it is unclear whether it supports systemic reforms to address these risks. In 2022, Capital Group joined the Net Zero Asset Managers initiative, supporting the goal of net zero emissions by 2050. Capital Group has mentioned engaging with regulators on sustainable finance policies but has not described details of these engagements. In 2020, Capital Group stated opposition to “prescriptive requirements” to achieve sustainable finance goals in the EU.

Capital Group has taken mixed positions on regulated corporate ESG disclosure, supporting disclosure generally but outlining concerns with some specific policy provisions. In a 2021 paper Capital Group stated support for policymakers working to create a strong framework for company disclosure, and it has supported regulatory implementation of the TCFD. In a 2021 letter to the SEC Capital Group supported regulated corporate ESG disclosure aligned with TCFD recommendations, but took a mixed position on the SEC’s proposed disclosure rule in 2022, asserting that the proposal strayed from the Commission’s traditional materiality standard. In comments on the EU’s Renewed Sustainable Finance Strategy it stated support for the Non-Financial Reporting Directive (NFRD). In the same comments, however, Capital Group opposed mandating disclosure of specific targets related to Paris Agreements goals, instead supporting a more “dynamic” disclosure framework. In 2022, Capital Group expressed strong support for the International Sustainability Standards Board’s proposed climate disclosure standards, which are likely to inform government policy.

Capital Group has broadly opposed policy on ESG labels and standards. In 2020 comments on the EU Renewed Sustainable Finance Strategy, Capital Group did not support the European Commission’s proposed policy on ESG labels for investment funds and did not support the EU taking action to create an ESG benchmark. In a 2020 consultation on the EU Green Bond Standard Capital Group supported the standard overall but advocated for a flexible and proportionate approach when extending the standard to new sectors.

Capital Group has taken a mixed but overall negative position on incorporating ESG factors into investor duties. In response to the Joint European Supervisory Authorities’ consultation on standards for the Sustainable Finance Disclosure Regulation (SFDR), Capital Group suggested that the proposed requirements were too prescriptive and should be more flexible. In the same comments, Capital Group did not support the inclusion of ESG impacts (negative externalities) in investor duties. Capital Group took a broadly positive position on ESG investing in response to Trump administration rollbacks in 2020; not supporting a Department of Labor rule that sought to limit shareholder rights and taking a mixed position on a proposed rule that limited ESG investing.

Capital Group has been mixed in its transparency on sustainable finance policies, disclosing only its position on regulated corporate ESG disclosure, and listing engagements with regulators on other issues but omitting details of these engagements and information about other policy positions. Capital Group has listed membership of trade associations but has not given details on the sustainable finance policy positions of these organizations or any actions taken to address misalignments.

QUERIES
DATA SOURCES
0NSNSNSNSNSNS
2NSNSNSNSNSNS
0NSNS-1NSNSNS
1NSNS1NSNSNS
NSNSNSNSNSNSNS
NSNSNS0NSNSNS
NSNSNS0NSNSNS
NSNSNSNSNSNSNS
0NANANANANANA
0NANANANANANA
Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
43%
 
43%
 
11%
 
11%
 
42%
 
42%
 
53%
 
53%
 
75%
 
75%
 
25%
 
25%
 
56%
 
56%
 
41%
 
41%
 
59%
 
59%
 
49%
 
49%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.