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VALIC Company I Agrsv Growth Lifestyle VLAGX Sustainability

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Sustainability Analysis

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Sustainability Summary

VALIC Company I Agrsv Gr Lifestyle Fund has a number of attributes that may meet the expectations of sustainability-focused investors, despite some issues worthy of attention.

VALIC Company I Agrsv Gr Lifestyle Fund's holdings are exposed to average levels of ESG risk relative to those of its peers in the Aggressive Allocation category, thus earning it an average Morningstar Sustainability Rating of 3 globes. Competing funds in the category with ratings of 4 or 5 globes have less ESG risk in their holdings. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, including climate change, biodiversity, product safety, community relations, data privacy and security, bribery and corruption, and corporate governance, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.

VALIC Company I Agrsv Gr Lifestyle Fund has an asset-weighted Carbon Risk Score of 7.8, indicating that its companies have low exposure to carbon-related risks. These are risks associated with the transition to a low-carbon economy such as increased regulation, changing consumer preferences, technological advancements, and stranded assets. Currently, the fund has 8.4% involvement in fossil fuels, which compares favorably with 10.7% for its average category peer. Companies are considered involved in fossil fuels if they derive some revenue from thermal coal, oil, and gas.

One potential issue for a sustainability-focused investor is that VALIC Company I Agrsv Gr Lifestyle Fund doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.

The fund has a modest level of exposure (7.75%) to companies with high or severe controversies. Companies with controversies are involved in incidents such as corruption, employee abuses, and that pose some degree of business risks to the company. Severe and high controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. In addition, they controversies can damage the reputation of both companies themselves and their shareholders.

ESG Commitment Level Asset Manager