Published 8 hours ago
Submitted by Principal Financial Group, Inc.
Originally published in Principal Financial Group 2024 Sustainability Report
Integrating sustainable investing practices
Our global investment philosophy
We aim to provide clients with sustainable investment options that offer competitive, risk-adjusted returns and utilize a holistic view of factors influencing risk and return to help create added value for clients over time.
Our approach
Our sustainable investing beliefs are grounded in fostering relationships with investors and communities by offering products and solutions that align with their values.
Our philosophy includes:
Sustainable investing oversight and collaboration
Principal Asset ManagementSM has multiple levels of oversight and collaboration for sustainable investing. Our Sustainable Investing Oversight Committee helps assure implementation of funds and strategies in accordance with the appropriate sustainability-related definitions. Our Sustainable Investment Council supports the sharing of best practices among investment professionals when they’re constructing and managing client portfolios. Finally, our Sustainable Investing Team helps ensure our investment professionals have the information and resources they need to create and maintain sustainable investment products and solutions for clients.
For purposes of our sustainability report, as of December 31, 2024, the assets under management for Principal Financial Group were $712.1 billion, of which $559.1 billion is managed by Principal Asset Management - Investment Management and $124.3 billion is managed by Principal Asset Management - International Pension.
Our actions and performance in 2024
Throughout 2024 we continued advancing our sustainable investing efforts:
What’s next
In 2025, the European Union’s Corporate Sustainability Reporting Directive (CSRD), climate regulations in California, and climate- related disclosures in Singapore all require insight into portfolio emissions. We are making progress on collecting and analyzing scope 3 emissions data. As the first CSRD reports are being published, we expect data coverage from underlying companies to continue to improve as a result.
To learn more, read the Principal Financial Group 2024 Sustainability Report.
Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Company®. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.
1In the fourth quarter of 2024, we implemented changes to our Principal Asset Management segment to align the global operations by business function. Prior to the fourth quarter of 2024, our Principal Asset Management segment was organized into Principal Global Investors and Principal International. The Principal Asset Management segment, is now organized into Investment Management and International Pension. The change has been applied retrospectively, which did not have an impact on our consolidated financial statements. Principal Asset ManagementSM is the trade name of Principal Global Investors, LLC. See Important Information page 79 for AUM description.
2AUM representative of Principal Asset Management - Investment Management as of December 31, 2024. AUM that are sustainable investment products are internally classified by Principal Asset ManagementSM and not by any third party or regulatory body. Principal Asset ManagementSM is the trade name of Principal Global Investors, LLC. See Important Information page for AUM description.
About Principal Financial Group®
Principal Financial Group® (Nasdaq: PFG) is a global financial company with nearly 19,000 employees1 passionate about improving the wealth and well-being of people and businesses. In business for 145 years, we’re helping approximately 68 million customers1 plan, protect, invest, and retire, while working to support the communities where we do business, and build a diverse, inclusive workforce. Principal® is proud to be recognized as one of the 2024 World’s Most Ethical Companies2, a member of the Bloomberg Gender Equality Index, and named as a “Best Places to Work in Money Management3.” Learn more about Principal and our commitment to sustainability, inclusion, and purpose at principal.com.
1 As of September 30, 2024
2 Ethisphere, 2024
3 Pensions & Investments, 2023
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