Our sustainable investing focus encompasses three critical elements: our commitment to sustainable investing, offering products and solutions that align with a variety of sustainable investment approaches, and an emphasis on stewardship and engagement
Partnering with Principal Asset Management enables global investors to align their sustainability goals with customized investment solutions tailored to their values and preferences.
Acting in clients’ best interests comes first and foremost. Our approach to sustainable investing is always driven by that priority.
We recognize that client needs and expectations vary across segments and geographies and that we must be consultative and offer choice.
By collaborating with our clients in personal and customized ways, we seek to better understand what types of engagements and investments best support their values and goals.
1990s
- Began managing custom screened, socially responsible mandates for some institutional clients
2010s
- Became a signatory to the Principles for Responsible Investing (PRI)
- Became a signatory to the Financial Reporting Council UK Stewardship Code
2020s
- Began offering sustainable investing integration capabilities
- Published sustainable investing guiding policies
- Formed Principal Asset Management Sustainable Investment Council
- Formed Principal Asset Management Sustainable Investing Oversight Committee
- Formed Principal Asset Management Engagement Working Group
Creating sustainable investment options and solutions that precisely address individual investor needs requires a commitment to innovation. Our differentiated global investment capabilities help us respond to client demands and meet investors’ objectives.
As of December 31, 2024, we have more than 100 actively managed strategies globally that have integrated principles of sustainable investing across asset classes, ranging from Foundational incorporation to more Enhanced, Thematic, and Impact strategies.
All investment teams have access to robust analytics to screen and measure sustainability-related factors, which complement their sustainable investing processes.
We are actively involved in initiatives that support improved stewardship across asset classes, including launching new funds and converting funds to meet Sustainable Finance Disclosure Regulations in Europe.
In addition to aligning at an enterprise level with Sustainable Development Goals (SDGs) introduced by the United Nations, we endeavor to align product offerings with SDGs where possible and where consistent with the specific team’s strategy.
The exclusion or inclusion of certain sectors, companies or practices based on specific ESG criteria.
An investment strategy in which ESG characteristics are considered, alongside other non-ESG characteristics, when making investment decisions with the goal of achieving risk and return objectives.
An investment strategy that integrates ESG characteristics into the investment process with the goal of achieving risk and return objectives while committing to the promotion of specific ESG criteria using enhanced product features such as, for example, specific sector exclusions, security exclusions, or carbon risk management frameworks.
An investment strategy focused on themes or assets specifically related to sustainability (e.g., clean energy, green technology, or sustainable agriculture), with the goal of achieving risk and return objectives.
An investment strategy with targeted investments (e.g., community investing) aimed at addressing social or environmental challenges. These targeted investments are intended to generate measurable environmental or social impact while aligning to the goal of achieving risk and return objectives.
We empower our investment teams to adopt and develop specific protocols that align with their asset classes, strategies, and approaches to stewardship and engagement.
Engagement with corporates and participation in industry and sector collaborative engagements are core responsibilities for our investment professionals.
- Stewardship activities are a part of each investment team’s separate philosophy and process.
- We use our equity shareholder advantage to create direct engagement opportunities. For fixed income and real estate, engagement revolves around direct communication with issuers.
- To further enhance our research process and help facilitate direct engagement with corporates, we augment our internal processes with the use of numerous third-party providers and broker-dealers.
- We have a dedicated committee responsible for developing and monitoring our proxy voting policy across vote themes, while also providing oversight of all proxy voting related matters. This includes the services of our third-party proxy research and administration provider, Institutional Shareholder Services (ISS).
- To ensure the sustainability risks are appropriately considered, we review all prospectuses and transaction documents with underwriters, and if necessary, our peers. We actively negotiate covenants and pricing to reflect those considerations.
| Category | Number |
|---|---|
| Votable meetings | 4,756 |
| Meetings voted | 4,745 |
| Proxy contests voted | 14 |
| Meetings with against management votes | 2,389 |
| Meetings with against ISS votes | 437 |
Our proxy voting record is indicative of the independence of our process
We have a dedicated committee responsible for developing and monitoring our proxy voting policy across all vote themes, as well as providing oversight of all matters related to proxy voting, including the services of our third-party proxy research and administration provider, Institutional Shareholder Services (ISS).
A client may authorize Asset Management to vote proxies and may obtain a summary report relating to their account by contacting their relationship manager. A client may also obtain a copy of our complete proxy voting policies and procedures upon request.
For further information, including a Corporate Liaison wishing to engage on a vote, please contact us.
| Organization | Principal Entity Affiliation | Since |
|---|---|---|
| United States Green Building Council | Principal Asset Management (Real Estate) | 2007 |
| ENERGY STAR Partner | Principal Asset Management (Real Estate) | 2009 |
| Principles for Responsible Investment (PRI) | Principal Asset Management | 2010 |
| CDP | Principal Financial Group | 2011 |
| Better Building Alliance | Principal Asset Management (Real Estate) | 2014 |
| Global Real Estate Sustainability Benchmark (GRESB) | Principal Asset Management (Real Estate) | 2014 |
| CEO Action for Diversity & Inclusion | Principal Financial Group | 2020 |
| Sustainable Development Goals (SDGs) | Principal Financial Group | 2020 |
| Investor Alliance for Human Rights | Principal Asset Management | 2021 |
| United Nations Global Compact | Principal Financial Group | 2021 |
| CFA Institute DEI Code (USA & Canada) | Principal Financial Group | 2023 |
Signatory to the Financial Reporting Council UK Stewardship Code (2022).
Joined the United Nations Global Compact (January 2021).
Signatory to the Principles for Responsible Investment since 2010.
GRESB 5-Star rating (2025) for European Core strategy and European Office strategy
GRESB Green Star rating (2025) for 14 U.S. and Europe strategies
The Firm paid GRESB an application fee to be evaluated and use the rating.
ENERGY STAR Partner of the Year, 2016-2024 Sustained Excellence, 2018-2024
Aligned collaboration between investment management and the enterprise:
The Nominating and Governance Committee of the Principal Financial Group Board of Directors oversees our corporate environmental and sustainability commitment. The Committee monitors risks and mitigation related to our environmental, sustainability, and corporate governance (ESG) responsibilities.
Principal Financial Group has a Sustainability Task Force which is made up of members appointed by the CEO. The members are leaders across the organization and report quarterly to the Principal Board of Directors. The role of the Sustainability Task Force is to ensure that material issues are integrated into and help guide our business decisions, drive our comprehensive sustainability strategy, and continually engage with stakeholders. This keeps us aligned with internal goals and third-party standards, including those of the U.N. Global Compact, which we joined at the participant level in January 2021, as well as other business groups such as the Business Roundtable and the CEO Action for Diversity and inclusion.
The Sustainable Investing Oversight Committee classifies, reviews, approves, and assures implementation of products and strategies Principal Asset Management actively markets in accordance with appropriate sustainable investing definitions. It also reviews alignment of product classifications and capabilities on a periodic basis to assure alignment remains appropriate. Additionally, the Committee reviews regulatory/industry policy submissions and identifies critical risks affecting sustainability support within the firm. The Committee meets at least quarterly.
The objective of the Sustainable Investment Council is to be the connective hub of sustainable investing information in the firm; establish consistency across investment teams; share best practices and provide support to all investment teams; assist investment teams in formulating strategy and reporting; sharpen our sustainable investing stories at the firm and strategy level; and serve as the liaison between Principal Asset Management and the broader Principal organization. The Council meets quarterly.
Our investment teams also have dedicated sustainable investing working groups which comprise cross-functional representation from portfolio managers, traders, and analysts, and work closely with the Principal Asset Management Sustainable Investing Leadership Team to share ideas for ESG integration and evaluate how related issues can be incorporated into our investment processes most effectively.
Our sustainable investing leadership team helps ensure our investment professionals have the information and resources needed to create and maintain investment products and solutions for clients.
Phil Wood
Managing director
Head of Equities client portfolio management
Principal Asset Management
Daniela Mohr
Sustainable Investing manager
LatAM
Syd Del Cid
Senior sustainable investing analyst
Research
Ryan Fitzgerald
Senior sustainable investing analyst
Stewardship & engagement
Ross Jones
Senior sustainable investing analyst
Stewardship & engagement
Footnotes
ESG criteria may present additional advantages or risks and does not protect against market risks or volatility. You should not make any investment assumptions based solely on the information contained herein. There is no assurance that any ESG component in our investing strategy will be successful.
Principal Real Estate is a trade name of Principal Real Estate Investors, LLC, an affiliate of Principal Global Investors.