Building a reputation for being a purpose-led company that helps people build a brighter future and that values inclusion, is at the core of what we stand for and stand up for. We are committed to helping more people and businesses gain access to systems, products and information to help them feel more secure as they journey through life. Financial security is a journey unique to each person depending on their experience and condition. It’s important to have the right data, messaging, and communication channels to reach our customers wherever they are in the world, whatever their financial status, goals, stage of life, or level of financial confidence. Our own sustainability journey is one that adapts over time—and it’s important to always tell an authentic and transparent story of impact.

As an asset owner through the general account of Principal Life Insurance Company^®, sustainability considerations form an important cornerstone of our investment strategy. Our investment teams consider sustainable investing factors in their analytical frameworks, with ESG metrics factored into the scoring of fixed income investments and climate change and emissions considerations incorporated into the evaluation of real estate deals by our real estate analysts.

Through operational improvement, renewable energy procurement, and employee engagement, we aim to reduce the environmental impact of our GHG emissions, energy and water usage, and waste production.

Our sustainability journey requires us to listen and respond to stakeholder concerns and employee priorities—and to consider our external context, such as market factors and economic trends. It’s also about a commitment to sharing what we’ve learned and showing evidence of our activities so stakeholders can learn about our work to build a more sustainable future. We work across teams and disciplines to set sustainability commitments that reflect our values and aspirations for a more inclusive and resilient world. Our multi-year sustainability goals and annual targets allow us to measure our progress. To manage the evolving landscape and stay ahead of the curve, we’re continuously refining our approach while we remain dedicated to transparently reporting progress.

Good governance and strong compliance are essential for any sustainable business. By ensuring integrity in our business practices, we can navigate an ever-changing legal, regulatory, geo- political, and reputational landscape while maintaining an ethical and transparent culture.

Our sustainability strategy is largely fueled by our people. We believe everyone plays an important role in creating a more diverse workforce and inclusive culture. Our purpose compels us to create meaningful work and rewarding experiences for our employees and ultimately better business outcomes for our customers and stakeholders.

Managing and mitigating risk is essential to the sustainability of our business. We work to identify, measure, monitor, and communicate, and manage risks within established limits and risk tolerances which may include but is not limited to market risk, insurance risk, operational risk and includes climate-related risk considerations.

Principal^® Foundation is an important part of helping people along their financial journey and focuses its support on those who are underserved and under-resourced. Principal Foundation spends a portion of its endowment each year to fund programs that address gaps in basic living needs, remove barriers, and provide resources to help people, small businesses, and communities take the next steps in their financial journeys.

As a global asset manager, our commitment to sustainable investing revolves around our fiduciary responsibility to our clients. Acting in their 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 can help determine what types of engagements and investments best support their values, goals, and expectations for a repeatable investment process. Through our client engagement efforts, we are mindful that sustainable investing offers the potential to enhance security analysis by providing a holistic view of the factors driving risk and potential return.