Capital Group

InfluenceMap Score
D
Performance Band
46%
Organisation Score
43%
Relationship Score
Sector:
Financials
Head​quarters:
Official Web Site:
Wikipedia:

Capital Group appears to have had broadly negative engagement with sustainable finance policies. It has not commented on the need for reforms to deliver a more sustainable financial system nor has it commented on the need for emissions reductions in the economy, but Capital Group has questioned the need for regulatory action on sustainable finance, particularly in the European Union.

Capital Group has taken mixed positions on regulated corporate ESG disclosure. 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 and 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.

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 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 limited in its transparency on sustainable finance policies, disclosing only its position on regulated corporate ESG disclosure in reports on its website. 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.

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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
45%
 
45%
 
22%
 
22%
 
43%
 
43%
 
56%
 
56%
 
50%
 
50%
 
40%
 
40%

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.