The United Nations (UN) Principles for Responsible Investment gave Principal Global Investors top marks on the newly released assessment of environmental, social and governance investment practices.

“People are beginning to understand that responsible investing does not have to be at odds with investment returns,” said Jim McCaughan, CEO of Principal Global Investors. “Each year we analyze our ratings, and use this information to adjust our policies and practices in ways that translate into value for our clients and investors.”

The UN defines responsible investing as an approach that aims to incorporate environmental, social and governance factors into investment decisions in order to better manage risk and generate sustainable returns. Since signing on in 2010, Principal Global Investors and its boutique investment firms have worked to align many of their practices with the tenets of the UN Principles for Responsible Investment, and incorporate those factors into investment management. The 2016 UN Principles for Responsible Investment Assessment Report benchmarks that progress.

The UN Principles for Responsible Investment initiative, launched in 2006, is an international network of investors working together to understand the implications of environmental, social, and governance factors on investment decision making and ownership practices.

Making the Grade
Companies committed to the Principles of Responsible Investment are required to report their investment activities each year. The Assessment Report then compares how well those investment activities align with United Nations objectives.

Principal Global Investors earned an overall score of A for Strategy and Governance, which outperformed the median score of B among other firms. Principal Global Investors scored at or above the median in nine different areas, including:

  • Real Estate
  • Listed equity incorporation
  • Fixed income corporate
  • Fixed income supranational sovereign agency

To learn more about Principal’s approach to responsible investing, visit https://www.principalglobal.com/about-us/responsible-investing. Principal Global Investors’ Principles for Responsible Investment Transparency Report can be found on the Principles for Responsible Investment website. The full 2016 Assessment Report for Principal Global Investors is available here.

Further information on the Assessment Report and the assessment methodology can be found here.

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