Singapore: How Temasek is Investing in Sustainability

Climate technologies, like renewable power tech and carbon capture, are needed to reach net zero in reasonable time. 

However, they are not free – a McKinsey study estimates that global spending on physical transition assets by 2050 would amount to US$275tn. 

Temasek is a Singaporean multinational investment firm with offices in nine countries around the world.

It has a net portfolio of around US$324bn and is one of the most influential state-owned investors. 

The firm focuses on four key structural trends to guide its portfolio construction:

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

"As a generational investor, we remain committed to embedding sustainability in everything we do — to build a sustainable institution and invest in businesses that deliver long-term sustainable returns not only for the benefit of our shareholder but also for our stakeholders including the communities we operate in,” says Dilhan Pillay Sandrasegara, CEO at Temasek, in its 2025 Sustainability Report.

“Building long-term resilience also requires us to address one of the most pressing issues of our time — climate change."

Investing in sustainability

Temasek’s 2025 sustainability report shows that its portfolio value of investments aligned with its Sustainable Living trend reached US$34bn billion on 31 March 2025.

Temasek’s sustainable living investments span established firms, early- and growth-stage companies and funds across key sectors including food, water, waste, energy and materials.

Kyung-Ah Park, Chief Sustainability Officer at Temasek, says in the report: "Companies with strong board oversight and management teams that can navigate these material issues are better positioned to strengthen their long-term competitive advantage and generate sustainable returns.

"This is why we remain steadfast in our sustainability strategy and continue to advance our climate, nature and social roadmaps with a focus on material risks and opportunities."

Temasek’s decarbonisation journey

Temasek has committed to halving its net portfolio emissions from 2010 levels by 2030 and achieving net zero by 2050. 

The 2025 report shows portfolio emissions remained the same as in 2024 at 21 million tCO₂e, a 22% reduction from 27 million tCO₂e in 2023.

Temasek achieved a 52% reduction in portfolio carbon intensity from 2010 levels and a 23% reduction in portfolio weighted average carbon intensity from 2022.

 The reduction in its absolute emissions was achieved through a combination of factors including the decarbonisation efforts of some portfolio companies and changes in portfolio composition.

Singapore Airlines, Sembcorp Industries, Olam Group, PSA International and ST Telemedia collectively contributed to approximately 82% of Temasek's total portfolio emissions for the year ending 31 March 2025.

Temasek’s sustainability strategy

Temasek is embedding nature and social roadmaps into its investment processes, aiming to proactively manage risks and foster inclusive growth. 

It has also played a convening role in global partnerships, such as the Transition Credits Coalition, to enable high-integrity carbon markets and scale next-generation climate solutions.

The firm is continuing efforts to reduce environmental impact, including procuring renewable electricity for its offices and obtaining renewable energy certificates for its operations.