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Principal Global Investors

PRI reporting framework 2018

Export Public Responses

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (C) Implementation: Integration of ESG issues

(C) Implementation: Integration of ESG issues

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate which ESG factors you systematically research as part of your investment analysis and the proportion of actively managed listed equity portfolios that is impacted by this analysis.

ESG issues

Proportion impacted by analysis




Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

The consideration of ESG issues primarily takes place within our equity investment process through our Global Research Platform which has shareholder value factors embedded within the process as well as through the fundamental research of stocks by our analysts.  Our analysts are the best placed to determine the importance of such factors in relation to a specific company or industry. The analysts provide the essential insights into industry trends and company-specific considerations including ESG issues. These insights are crucial to the evaluation of sustainable competitive advantages and risks at a company-specific and industry level. Analysts have discretion to focus on the considerations and concerns they feel are most important and impactful to sustainable earnings, sentiment and relative valuation.

Our stock selection approach focuses on the early identification of fundamental change and differentiating companies on the basis of sustainable earnings trends, investor sentiment, and relative valuation. Academic research and empirical data suggest that some ESG factors can have a material impact on each of these fundamental considerations. Therefore, we consider certain ESG issues to the extent they have material implications on these considerations, consistent with our fiduciary duty to help clients achieve their investment objectives and protect their economic interests.

LEI 09. Processes to ensure integration is based on robust analysis (Private)

LEI 10. Aspects of analysis ESG information is integrated into (Private)