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Our sustainable investing beliefs

  • Fosters relationships with investors and communities by aligning with their values.

  • Offers the potential to enhance security analysis by providing a holistic view of the factors driving risk and return, which may lead to enhanced fiduciary oversight and governance.

  • Integration may influence investment outcomes by adding the potential for climate, regulatory, and environmental risk mitigation to client portfolios.

Our commitment to sustainable investing

  • Integration occurs across all actively managed asset classes, with the approach determined by each investment group’s process.

  • Signatory to the Principles for Responsible Investment since 2010.

  • We are an industry leader in responsible real estate investing, with a unique Pillars of Responsible Property Investing sustainability platform.

  • Our investment teams have decades of experience managing custom-screened, socially responsible mandates for institutional clients. 

Our Principal Real Estate team is a recognized leader in responsible property investing.1   Learn more

Aligning on our sustainable investing strategy

Listen as Kamal Bhatia, Chief Operating Officer of Principal Asset Management, explains the importance of our ESG strategy.

Sustainable investment signatories and recognition

Principal Global Investors has been awarded signatory status to the Financial Reporting Council UK Stewardship Code.2

Joined the United Nations Global Compact (January 2021).

Signatory to the Principles for Responsible Investment since 2010.

GRESB 4-Star rating (2023)
U.S. Core strategy, 8th consecutive year
European Core strategy3, 4th consecutive year
European Office strategy, 2nd consecutive year

The Firm paid GRESB an application fee to be evaluated and use the rating.

ENERGY STAR Partner of the Year 2016-2023,
Sustained Excellence 2018-20234

Scaled background Principal logo with blue gradients

Inspiring change: 2022 Sustainability Report

Additional sustainable investing resources


Proxy voting

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.

As recognized by Global Real Estate Sustainability Benchmark (GRESB): 4-Star rating, U.S. Core strategy, eighth consecutive year, 2023. 2016-2023 GRESB assessment for Principal Real Estate’s U.S. Core strategy representing data from 31 December 2015 to 31 December 2022. 4-star rating represents top 40% worldwide performance. For information on the methodology used for the GRESB 4-star rating please visit: https://www.gresb.com/wp- content/uploads/2017/07/GRESB-RE-Scoring-Methodology.pdf. In order to receive a ranking, the Firm paid GRESB an application fee to be evaluated and use the ranking.

ENERGY STAR: Partner of the Year 2016-2023, Sustained Excellence 2018-2023. Energy Star, 2023 Energy Star Partner of the Year, awarded to Principal Real Estate Investors. Each year, the EPA honors organizations that have made outstanding contributions to protecting the environment through energy efficiency. April 2023, U.S. Environmental Protection Agency.

2 Awarded to Principal Asset Management (a trade name of Principal Global Investors, LLC), Financial Reporting Council UK Stewardship Code, 2021. 

2016-2023 Global Real Estate Sustainability Benchmark (GRESB) assessments for Principal Real Estate’s U.S. Core strategy representing data from 31 December 2015 to 31 December 2022; 2020–2023 GRESB assessments for Principal Real Estate’s European Core strategy representing data from 31 December 2019 to 31 December 2022; 2022-2023 GRESB assessments for Principal Real Estate’s European Office strategy representing data from 31 December 2021 to 31 December 2022. 4-star rating reflects top 40% worldwide performance.

For information on the methodology used for the GRESB 4-star rating please visit: https://www.gresb.com/wp- content/uploads/2017/07/GRESB-RE-Scoring-Methodology.pdf.

4 Energy Star, 2023 Energy Star Partner of the Year, awarded to Principal Real Estate Investors. Each year, the EPA honors organizations that have made outstanding contributions to protecting the environment through energy efficiency. April 2023, U.S. Environmental Protection Agency. 

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.