How is Temasek Building a Sustainable Investment Portfolio?

Temasek, a Singaporean state-owned investment company with 13 offices across nine countries, manages a net portfolio of SGD518bn (US$401bn), targeting sectors including technology, financial services and life sciences.

It is aiming towards net zero, focusing on investing for a low-carbon economy, encouraging decarbonisation efforts and enabling carbon market solutions.

Its target is to reach net zero carbon emissions by 2050.

Temasek’s sustainability strategy

During fiscal year 2025, Temasek achieved a 62% reduction in Portfolio Carbon Intensity from 2010 levels.

Kyung-Ah Park, Chief Sustainability Officer at Temasek, says: “Over the year, the global operating environment has become even more volatile – shaped by geopolitics, energy security and technology disruption – while the multilateral systems that underpin global stability are under strain.

“Against this backdrop, decarbonisation – and ensuring an inclusive transition – has become harder. This is particularly true for capital-intensive, early-stage technologies for hard-to-abate sectors and capital for underserved markets.

“The road ahead will be more complex and progress may be uneven. But that only reinforces our resolve to take disciplined, long-term action. Our focus remains on building a more resilient sustainable portfolio.”

Sustainable business practices

Temasek prioritises sustainability throughout its operations, with a focus on resource efficiency.

It has an optimal, energy-efficient, and sustainable temperature setting of 25C for its Singapore office.

The company has also implemented smart metering for energy monitoring and management, as well as improved waste segregation techniques and e-waste recycling.

Temasek has purchased Sustainable Aviation Fuel (SAF) certificates from Singapore Airlines, which is equal to approximately 1% of its emissions from business travel.

Its India and UK offices have procured renewable electricity directly from providers, with some of its other offices using renewable energy certificates.

Dilhan Pillay Sandrasegara, CEO of Temasek, says: “External headwinds have made decarbonisation pathways slower and more disorderly, while energy security and affordability have risen to the forefront. 

“But the longer-term pathway is clear: we need to transition to a cleaner, more resilient energy future, with renewables – and increasingly, storage – emerging as cost-effective and geopolitically resilient solutions.

“We will pursue the energy transition in a balanced and pragmatic way.

"This recognises that parts of today’s energy mix will remain necessary over the longer term to support energy security and a just transition, alongside a credible commitment to lowering emissions.”

Sustainable investments

Temasek aims to build a resilient investment portfolio that can withstand market shocks and capture growth opportunities.

It aligns its investment activities with the Sustainable Living trend by directing capital towards companies whose products and services advance environmental or social objectives.

It aims to invest in solutions that reduce GHG emissions, advancing the green economy through targeted investments in decarbonisation.

This involves investing in clean and renewable energy, clean transportation, energy efficiency and green buildings.

Kyung-Ah added on LinkedIn: “Our approach is anchored in pragmatic ambition and purposeful action – staying committed to our 2050 net zero ambition while remaining grounded in the realities of the transition.

“It means recognising complexity without losing sight of where we ultimately need to go and leaning in where we can influence outcomes by continuing to deploy capital to a sustainable future, deepening portfolio engagement to strengthen long-term resiliency and accelerating systems change through partnerships to support real-world decarbonisation.

“We will continue to work alongside our portfolio companies, partners and broader ecosystem to do good, do well and do right.”