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Our ESG beliefs

  • ESG fosters relationships with investors and communities by aligning with their values.

  • ESG 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.

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

Our commitment to ESG

  • ESG 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 ESG strategy

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

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 (2022)3
U.S. Core strategy, 7th consecutive year
European Core strategy, 3rd consecutive year
European Office strategy

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

Partner of the Year 2016-2022,
Sustained Excellence 2018-20224

Scaled background Principal logo with blue gradients

Building a better future: 2021 sustainability report

Additional ESG 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 Principal Global Investors 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.

Sustainability related disclosures and policies


Certain vehicles have not been registered with the United States Securities and Exchange Commission under the United States Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States or to any United States person.

1 As recognized by GRESB: 4-Star rating seventh consecutive year, 2022. Rating represents top 40% worldwide performance. Global Real Estate Sustainability Benchmark (GRESB) assessment, data as of December 2021; ENERGY STAR: Partner of the Year, Sustained Excellence 2018-2022, April 2022.

2 Awarded to Principal Global Investors, Financial Reporting Council UK Stewardship Code, 2021.

3 2022 Global Real Estate Sustainability Benchmark (GRESB) assessment, data as of December 2021.

4 Awarded to Real Estate entities with a score higher than 50% of the points allocated to the Management and Performance components. Entities with more than 15 points in Management and 35 points in Performance OR 15 points in Management and 35 points in Development will receive the Green Star designation. This rating is based on absolute performance.

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.