Better Health for All

Principal Financial Group's core financial services products have no significant direct positive or negative health impact. However, the company engages in initiatives that support better health outcomes. Principal collaborated with the University of Connecticut's Feel Your Best Self program, which provided mental wellness tools, resulting in over 39,000 toolkits downloaded and more than 116,645 YouTube views.

This program also serves as a public health education initiative. Through its philanthropic arm, the Principal® Foundation, the company provided over $18 million to communities worldwide in 2023 , contributing to a total investment of over $30 million over two years to advance financial security for more than eight million people globally. These efforts include funding for Nutrition Security, such as supporting WesleyLife Meals on Wheels to prepare and deliver 3,000 meals per day to home-bound adults in central Iowa , and a $1 million grant to World Central Kitchen, which provided over 200,000 meals to families in the U.S. Additionally, the Ride United Transportation Access Program, supported by the foundation, provided 154,827 rides to 35,183 clients during the 2022–2023 program year , enabling access to healthcare.

Fair Money & Economic Opportunity

Principal Financial Group and Principal® Foundation invested over $30 million between 2021 and 2023 to enhance financial security, impacting over eight million individuals globally

. In 2023 alone, Principal® Foundation invested over $18 million for economic mobility, focusing on diverse populations . By 2023, they supported 14,745 entrepreneurs and businesses, particularly those owned by women and people of color . These initiatives included enhancing product access, advocating for equitable capital access, providing community development support, microfinance, and offering financial education through 140 charitable organizations across 25 countries .

Fair Pay & Worker Respect

Principal Financial Group's CEO to median employee pay ratio was 214:1 in 2024.

The company's Employee Engagement Index scored 77% in 2024. Global voluntary employee turnover was 17% in 2023. Principal conducts annual global pay audits with a third party to identify unexplained pay differences, including gender and racial pay gap assessments in the U.S. The company posts minimum and maximum salary ranges for all open positions in the U.S. In 2023, 99.9% of active employees completed training on the Global Code of Conduct, and all submissions to the Ethics Hotline were fully reviewed and investigated. The company offers flexible time off programs for exempt employees and paid parental leave. Principal was recognized as a World’s Most Ethical Company by Ethisphere in 2024 and scored 100 on the Disability Equality Index in 2024.

Honest & Fair Business

Principal Financial Group's Board of Directors includes 13 members, with 11 identified as independent, representing 84.6% independence.

The company also enforces a Global Code of Conduct focused on anti-bribery and anti-corruption, with 99.9% of employees completing related training in 2023.

Kind to Animals

Principal Financial Group is a financial services company. As of March 2025, the company held a $309,000 stake in Elanco Animal Health, a company that may involve animal testing.

In January 2025, it invested $728,000 in Petco Health and Wellness Company, Inc., a firm focused on pet health and wellness. The company was recognized by Ethisphere as one of the World's Most Ethical Companies in 2024 and 2025, though this award does not specifically highlight animal welfare initiatives. No other specific evidence related to the company's direct animal welfare practices, policies, or impacts was provided in the articles.

No War, No Weapons

Principal Financial Group Inc. primarily focuses on asset management, retirement solutions, and insurance products, which inherently do not involve military or arms industries.

This means the company has no defense or arms-related activities in its core business , no defense business for its board to oversee, no weapons red lines needed, no exposure to any weapons, and no defense assets to divest. Consequently, there are no applicable ethical red lines for this business model.

Planet-Friendly Business

Principal Financial Group has 93% of its owned and occupied Des Moines portfolio LEED certified.

In 2024, 41.3% of its global energy came from renewable sources, and 69.9% of hazardous and nonhazardous waste in U.S. facilities was diverted. The company aims for a 65% reduction in global Scope 1 and 2 GHG emissions by 2034 from a 2019 baseline, a target aligned with the Science Based Target initiative’s (SBTi) 1.5°C scenario. Global Scope 1 and 2 emissions decreased by 14.6% from 2022 to 2023, achieving a 46% reduction since 2019. The company's report is prepared in alignment with TCFD recommendations, and climate risk scenario analyses are conducted for 13 Principal Real Estate investment strategies. Global energy consumption decreased by 19.2% in 2024, and water consumption decreased by 16.4% in 2024, with a 46.3% reduction over five years. Principal received the ENERGY STAR Partner of the Year Sustained Excellence Award in 2024. In 2021, a $600 million sustainability bond was issued, and by 2023, 61% of assets under management were classified as sustainable investment products.

Respect for Cultures & Communities

Principal Financial Group supported over 140 charitable organizations in 2023.

The company also engages in formal partnerships with six diverse supplier councils, including those for Native Americans/Alaskan Natives. FPIC processes are not applicable to the company's operations, as the provided information focuses on supplier inclusion within the United States and does not discuss indigenous peoples in the context of FPIC.

Safe & Smart Tech

Principal Financial Group has a comprehensive, centralized ethical and responsible AI framework that accounts for compliance, privacy, regulatory, and security risks.

Every AI use case goes through this framework and recorded in a centralized system. The executive leadership team received a four-hour, in-person AI training session. Over 99% of active employees completed training on the Global Code of Conduct, and 82% completed at least one AI course. , Every AI use case is recorded in a centralized system, which kickstarts an assessment process. Users have rights to access, rectify, erase, restrict processing, data portability, object to processing, and withdraw consent regarding their personal information, with requests acknowledged within 10 business days and a substantive response provided within 45 days. Each workload migrated to AWS undergoes extensive security controls and reviews, and the company conducts regular vulnerability testing. , The company complies with applicable laws, including European, UK, and Swiss data protection laws, CCPA, and Gramm-Leach-Bliley Act (GLBA), operates under the NIST Cybersecurity Framework, and undergoes biennial third-party assessments for compliance. , ,

Zero Waste & Sustainable Products

In 2023, Principal Financial Group achieved a 69% waste diversion rate for hazardous and nonhazardous waste through recycling, donating, and composting efforts.

This exceeded their annual goal of maintaining a 50% or greater waste diversion rate. Additionally, 100% of hazardous waste was recycled.