Principal’s Corporate Commitment
Implementation planning will be in place to align our corporate responsible investment with 7 UN Sustainable Development Goals by 2022.
Principal’s continued recognition by these industry benchmarks demonstrate its commitment to asset management and fiduciary governance, and the pursuit of positive environmental results for our clients.
Principal joined the United Nations Global Compact (January 2021)
Principal Global Investors (PGI) obtained “A+” score for Strategy & Governance and strong scores in PRI Assessment (2020) 2
Principal Real Estate earned GRESB 4-Star rating, fifth consecutive year (2020) 3
Principal Financial Group attained an eight-time CDP S&P 500 Climate Performance Leader (2020) 4
Principal Real Estate achieved 2021 ENERGY STAR Partner of the Year winner for Sustained Excellence (2021) 5
Principal Global Investors Responsible Investment Journey
Building on Principal’s commitment to corporate stewardship, PGI has a history of integrating environmental, social, and governance (ESG) factors into our investment approach.
PGI believes ESG integration can foster stronger relationships with investors and communities by aligning with their values, improving security analysis potential by providing a holistic view of factors driving risk and return, and potentially aiding investment outcomes by considering climate, regulatory, and environmental factors within client portfolios.
PGI began managing ESG-focused mandates for some of the world’s largest pension funds.
PGI became a signatory to the Principles for Responsible Investing (PRI)
PGI plans to develop and maintain:
- ESG integration capabilities
- Internal ESG rating
- ESG guiding policies
- PGI ESG Investment Council
PGI’s ESG Approach
Our multi-team approach allows each investment team to determine how to integrate ESG factors into its investment processes, based on the needs of its clients.
Our client-first focus is central to integrating ESG factors across our investment teams and asset classes, which range from equities, fixed incomes, real estate, asset allocation and alternatives.
The ESG landscape is evolving. Our flexible approach to these issues allows us to offer options that follow a repeatable investment process while supporting client values and helping them achieve their financial goals.
PGI Investment Teams
Principal Global Equities
Over two decades experience managing custom-screened and faith-based equity portfolios.
Direct integration of ESG ratings, analytics and proxy voting interfaces within proprietary Research Dashboard.
Developed internal sector-tailored Engagement Priorities and Pillars framework and Proprietary Sustainability ratings framework imbedded in our analysts’ company investment thesis templates.
Principal Global Fixed Income
In 2000s, Principal Global Fixed Income began managing fixed income ESG-related mandates.
Mandates include negative screening, controversial weapon exclusions and norms-based screening.
ESG Sustainability Policy Board was established. Enhanced reporting through Carbon Portfolio Tracking and established proprietary ESG ratings.