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Sustainability
July 17, 2025

Temasek's Sustainable Investment Strategy in Singapore

Temasek, Singapore’s state-owned investment firm, is at the forefront of sustainable investing, integrating environmental, social, and governance (ESG) principles into its portfolio. The company is actively channeling funds into green technologies, low-carbon solutions, and climate-resilient initiatives to drive long-term impact. Its strategy not only supports global sustainability goals but also positions Singapore as a leader in responsible investing. Temasek’s approach reflects its commitment to shaping a more inclusive and sustainable global economy.

Singapore-based investment powerhouse Temasek is deeply committed to integrating sustainability throughout its investment portfolio, aiding companies in cutting emissions while also transforming its own internal practices.

Achieving net-zero emissions swiftly will rely heavily on climate innovations, such as renewable energy technologies and carbon capture solutions.

Yet, these technologies require substantial funding. A report by McKinsey projects that global investment in transition-related infrastructure could hit US$275 trillion by 2050.

Temasek is a globally active investment firm, with operations spread across 10 countries.

With a net portfolio worth around US$377 billion, Temasek ranks among the world’s most influential state-owned investors.

To steer its investment decisions, the firm follows four major structural shifts:

  • Sustainable living
  • Future of consumption
  • Digitisation
  • Longer lifespans

Temasek CEO Dilhan Pillay Sandrasegara emphasizes in the 2025 Sustainability Report that the firm is committed to embedding sustainability into its DNA to ensure long-term value creation for shareholders and wider communities.

He adds that long-term resilience demands urgent action on climate change, one of the era’s greatest challenges.

Investing in Sustainability

Temasek’s sustainability-focused investments reached a value of US$35.7 billion as of March 2025, aligned with its Sustainable Living framework.

  • Its first category of investment includes companies whose offerings promote a net-zero, nature-positive, and inclusive future.
  • The second category, climate transition investments, supports carbon-intensive sectors in evolving towards greener practices.

Temasek’s Sustainable Living strategy spans multiple business stages from startups to established enterprises and investment funds and covers crucial industries like:

  • Food
  • Water
  • Waste
  • Energy
  • Materials

According to Kyung-Ah Park, Temasek’s Chief Sustainability Officer, companies that effectively manage environmental and social risks are better placed for long-term success and sustainable returns.

She affirms that Temasek is firmly advancing its climate, nature, and social agendas, focusing on material risks and opportunities.

Progress on Decarbonisation

Temasek is targeting a 50% reduction in net portfolio emissions (compared to 2010) by 2030, and aims for net zero by 2050.

  • In 2025, portfolio emissions held steady at 21 million tCO₂e, down 22% from 2023.
  • Since 2010, the firm has cut portfolio carbon intensity by 52% and achieved a 23% drop in average carbon intensity since 2022.

Part of this progress is due to companies like Sembcorp Industries, which expanded its renewable energy projects.

A handful of firms, Singapore Airlines, Sembcorp Industries, Olam Group, PSA International, and ST Telemedia, were responsible for around 82% of Temasek’s portfolio emissions in FY 2025.

To further align investments with climate goals, Temasek plans to raise its internal carbon price to US$100 by 2030, embedding climate costs into financial decisions.

Broadening Sustainability Efforts

Beyond carbon, Temasek is incorporating nature and social impact frameworks into its investment process to support inclusive and sustainable growth.

The firm has taken a leadership role in global collaborations such as the Transition Credits Coalition, which promotes transparent carbon markets and accelerates cutting-edge climate tech.

Temasek is also working to lower its operational footprint, by:

  • Procuring renewable energy for its offices
  • Securing renewable energy certificates to cover its business operations

For questions or comments write to contactus@bostonbrandmedia.com

Source: sustainabilitymag

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