Principal Financial Group® 2023 Sustainability Report: A Letter From Our CEO
Impact in action: Building brighter futures
Originally published in Principal Financial Group 2023 Sustainability Report
Principal® is committed to expanding the population of those living in financial security through long-term, responsible actions like advocating for financial inclusion and creating new opportunities for generations to come.
Customers want to do business with companies whose values align with their own. Our customers tell us these actions matter to them. They also matter to us. In fact, 2023 will mark my 40th anniversary with the company, and I’ve personally never known a time when everyone at Principal has been so focused on investing in what matters.
We aspire to create and maintain a work environment based on integrity, respect, community, and trust—so employees can contribute to their full potential and do their best work for our customers.
"I’m very proud of our nearly 20,000 employees worldwide who understand we have a unique opportunity to improve the lives of others through the work we do each day.”
Dan Houston
Chairman, President, and CEO of Principal
Our U.S. Diversity Index measures how well we’re living this out, and the 2023 Index exceeded our goal by nearly five percentage points. Additionally, our culture is regularly recognized by reputable third parties. Key workplace recognitions in 2023 highlight Principal as an ethical, responsible, and just company; a great place to work in both money management and information technology; a stand-out employer for women—and executive women in particular; and a company known for inclusion, diversity, and innovation.
Research and advocacy are two additional areas where we live out our values. In 2023, Principal sponsored the second annual Global Financial Inclusion Index,1 providing greater insight into the levers that enable or inhibit financial inclusion in markets around the world. Company leaders continue to use data from the report to drive meaningful conversations and to enrich our understanding of the customers and stakeholders we serve.
Recognizing the pressing climate concerns and investors’ interests in supporting climate action, we were honored to participate in COP28, the 28th annual United Nations climate meeting. We shared our views on sustainable investing, especially related to food and biodiversity in the face of a warming world.
That same week we released research on how global investors can help advance food security.
In communities around the world, Principal, together with Principal® Foundation, are leading efforts to foster financial security, diversity, equity, and inclusion—through financial education, volunteerism, grant- making, sponsorship, and more. Principal® Foundation committed $18 million to our communities in 2023, which is just one piece of the story. The Principal Foundation and Community Relations teams have diligently grown their initiatives globally, ensuring our programs and resources are aligned with our highest priorities.
Additional highlights from 2023:
- In 2021, with support from Principal Foundation, we committed to double the number of diverse small and midsize businesses (SMBs) we support by 2025.
We are proud to have achieved that goal in 2023, and we’re setting a new goal for 2025. - From an environmental perspective, we are confident we’ll reach our long-term goal of achieving a 65% reduction in our global scope 1 and scope 2 market-based greenhouse gas (GHG) emissions by 2034. Our glide path goal is an average 4.3% reduction per year. We achieved this goal again in 2023, with meaningful decreases in our emissions both in the U.S. and globally. On average, since 2019, we’ve reduced GHG emissions by 11.5% each year.
- And, through our commitment to sustainable investing, in 2023 we implemented sustainability guidelines for the Principal Life Insurance Company® general account, covering two-thirds of the assets under management in our general account.
I invite you to learn more about these initiatives (and many more) as you read this report, including the progress we’re making toward our long-term commitments as shown on page 12. I’m very proud of our nearly 20,000 employees worldwide who understand we have a unique opportunity to improve the lives of others through the work we do each day. Their belief that financial security can and should be more universally accessible is inspiring, as is their dedication to supporting our customers and our communities.
Thank you for your interest in Principal and your desire to learn more about our goals and our progress. We know we can do more, and I look forward to seeing how we continue to live up to customers’ expectations and move the needle even further in 2024.
Dan Houston
Chairman, President, and CEO
To learn more, read the Principal Financial Group 2023 Sustainability Report.
1The Global Financial Inclusion Index is a proprietary model output based upon certain assumptions that may change,are not guaranteed and should not be relied upon as a significant basis for an investment decision.
Principal Financial Group Foundation, Inc ("Principal® Foundation") is a duly recognized 501(c)(3) entity focused on providing philanthropic support to programs that build financial security in the communities where Principal Financial Group, Inc. ("Principal' operates. While Principal Foundation receives funding from Principal, Principal Foundation is a distinc independent, charitabl entity. Principal Foundation does not practice any form of investment advisory services and is not authorized to do so. © 2024 Principal Foundation.
Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Company®. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.
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