Principal Financial Group 2023 Sustainability Report: Improving Operational Environmental Performance

CSRWire

Originally published in Principal Financial Group 2023 Sustainability Report

Improving operational environmental performance

We remain committed to integrating responsible energy, water, and waste management practices into our business operations through efficient and sustainable solutions and improvements.

Our approach

Energy-efficient technologies and access to renewable energy sources help us meet our broader goals and further reduce our impact on the environment.

We’re mindful of our water consumption and recycling efforts and have formulated action plans to improve our performance.

Furthermore, we’ve established a system and policy modeled after ISO14001 and designed to:

reduce energy use and GHG emissions,
improve water efficiency,
reduce waste to landfill, and
increase employee awareness.

While our consumption of energy and water and production of waste are not significant, we continue to routinely measure these areas of our operations to better understand our impact on the environment.

Our actions and performance in 2023

Energy consumption and renewable energy¹

From 2022 to 2023, we reduced energy consumption by 13.5% globally and by 13.2% in the U.S. This reduction resulted from our data center being moved to leased space, changes in office spaces, and the decreased need for heating this year from previous years due to warmer weather in Des Moines.

The changes in office space also contributed to a slight decrease in energy from renewable sources as compared to 2022 as these spaces primarily used renewable energy. On a global level, 47.8% of energy came from renewable sources in 2023.

In the U.S., approximately 55.6% of total energy consumption came from renewable sources—a total of 35,578.4 MWh, a small decrease from 2022 as a result of our energy mix using more fuel and less electricity than in the previous year.

Of total U.S. energy usage, 61.3% came from electricity, and approximately 90.8% of electricity consumption came from renewable sources—an increase from 2022. In 2023, we benefited from the ability of our Des Moines utility provider to provide a significant amount of energy from renewable sources. In 2023, the provider confirmed that it provided 100% renewable energy to its Iowa territory in 2022 through its wind fleet, and validated this through the Iowa Utilities Board GreenAdvantage program.

Water consumption²

We incorporate responsible water management practices to meet or exceed Leadership in Energy and Environmental Design (LEED®) guidelines for water efficiency and implement water reduction measures wherever possible. Compared to 2022, we saw a 3.3% decrease in water consumption in 2023. Overall, in the last five years we’ve decreased our water consumption by 43.8%. This can be attributed to a reduction in occupancy in our buildings due to the pandemic and hybrid work arrangements, reducing our overall office usage and therefore decreasing water use.

55.6% of total energy consumption in the U.S. in 2023 from renewable sources
90.8% of electricity consumption in the U.S. in 2023 from renewable sources
3.3% decrease in water consumption in the U.S. in 2023

Waste and recycling³

In 2023, we diverted 69% of hazardous and nonhazardous waste produced in U.S. facilities where we measure recycling, donating, and composting efforts, with 100% of our hazardous waste being recycled. We continue to make incremental changes in our offices to reduce waste, such as an increase in signage to help employee awareness and education around appropriate waste practices, employee- led environmental initiatives, and a composting program for food service and restrooms.

Our goal is to meet or exceed LEED® guidelines for waste and recycling, which is to maintain a 50% or greater waste diversion rate annually.

69% of hazardous and nonhazardous waste produced in our U.S. facilities where we measure was diverted in 2023.

Overall we disposed of more waste this year than last year. We believe the primary contributor is an increase in employees working from the office more frequently, resulting in more non-durable goods disposal.

With the relocation of our data center to a leased location in 2023, we increased the amount of electronic waste recycled during the transition process.

Green buildings

We use LEED® certification to ensure efficient and healthy work environments. Of the Principal owned and occupied portfolio in Des Moines, 93% is LEED® certified, as measured by square footage.

Read more in our Environmental policy

What’s next In

November 2023, return to office guidance went into effect for our largest offices. We will monitor how our return to office guidance contributes to our environmental impact, and work to find ways to continue to prioritize responsible environmental management practices.

In 2024, we will be installing smart irrigation systems as well as enhanced cooling tower water controls to monitor and limit water usage.

We will continue to explore innovative technologies and renewable energy options to help reduce our GHG emissions across the globe. We’ll also continue to meet LEED guidelines for waste diversion, expand our composting program, and aim to reduce single-use plastics.

Finally, we are continuing to broaden our initiatives to educate our employees and provide more awareness to our stakeholders on environmental efforts and data.

To learn more, read the Principal Financial Group 2023 Sustainability Report.

¹2023 greenhouse gas emissions and energy consumption values will be verified in Q2 2024, and final figures will be disclosed in the 2024 CDP Climate Questionnaire.

²Waste and water data represent select U.S. offices only.

³Waste and water data represent select U.S. offices only.

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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