We believe the best companies can do it all—operate profitably, invest in their business, and return capital to shareholders. We see ESG as an important risk factor and are more likely to avoid companies where there are ESG-related concerns.
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Sustainable investing approach
When it comes to sustainable investing, we empower investors by offering choice, confidence, and flexibility.
We evaluate each company based on their competitive advantage, complexity, financial strength, potential for profitability and shareholder friendliness. There are also three ESG factors that we highly value, monitor, and advocate for: diversity, carbon emissions, and pay equity.
Our proprietary qualitative industry ranking approach evaluates these ESG factors within the context of each sector, recognizing leaders and laggards.
As part of our industry review process, our team regularly engages with company management to determine their level of ESG commitment and to encourage disclosure.
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Past performance does not guarantee future results.
Equity markets are subject to many factors, including economic conditions, government regulations, market sentiment, local and international political events, and environmental and technological issues that may impact return and volatility. Small and mid-cap stocks may have additional risks including greater price volatility. Dividends are not guaranteed.
ESG integration is considered across all actively managed asset classes, with the approach determined by each investment group’s process. This information is specific to the strategies managed by the individuals providing this content and various investment teams across Principal may have differing views of this approach.
Principal Edge is an investment team within Principal Global Investors.