Principal Asset Management Advances Global Sustainable Investing in 2024

Embedding Sustainable Investing Principles Our Global Investment Vision We are committed to offering clients sustainable investment opportunities that deliver competitive, risk-adjusted returns. By taking a comprehensive approach to factors affecting risk and performance, we aim to generate lasting value over time.

Our Commitment Our sustainable investment philosophy is rooted in building strong connections with both investors and communities, delivering solutions that align with their priorities and principles. This approach includes:

• Integrating environmental, social, and governance (ESG) considerations
• Designing sustainable investment solutions
• Practicing active engagement and stewardship
• Exercising responsible proxy voting

Oversight and Collaboration in Sustainable Investing Principal Asset ManagementSM maintains a multi-layered governance framework for sustainable investing.

• The Sustainable Investing Oversight Committee ensures funds and strategies are implemented in line with relevant sustainability standards.
• The Sustainable Investment Council facilitates the exchange of best practices among our investment teams when building and managing portfolios.
• The Sustainable Investing Team equips professionals with the knowledge and resources needed to design and maintain sustainable investment offerings for clients.

Assets Under Management (AUM) (as of December 31, 2024)

• $712.1B – Total AUM for Principal Financial Group, Inc.
• $559.1B – Managed by Principal Asset Management – Investment Management¹
• $124.3B – Managed by Principal Asset Management – International Pension

For sustainability reporting purposes, Principal Financial Group’s $712.1 billion AUM includes $559.1 billion managed under Investment Management and $124.3 billion under International Pension.

Our 2024 Progress In 2024, we advanced our sustainable investment initiatives by:

• Offering sustainable investing training to all Principal employees, enhancing their ability to serve clients and customers effectively.
• Growing sustainable investing AUM² to approximately 63%, driven by market gains and increasing client demand.
• Launching an upgraded Principal Asset Management sustainable investing website, improving user experience and expanding educational resources for investors worldwide.
• Introducing six new sustainable investment products in response to client needs.

Looking Ahead In 2025, new regulations—including the EU’s Corporate Sustainability Reporting Directive (CSRD), California’s climate rules, and Singapore’s climate-related disclosure requirements—will demand greater transparency in portfolio emissions. We are actively gathering and analyzing scope 3 emissions data, anticipating improved corporate reporting as CSRD compliance becomes standard.

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