Sustainability at the Core
Engaging our Companies
As an asset owner, the success of our companies underpins our own success. Investment stewardship builds resilience and value, with sustainability as a value creation lever.
Jump to
Our long term investment horizon, which can span decades, puts us in a unique position to support companies to become more sustainable and adopt carbon abatement strategies. We can deploy catalytic capital in start-ups and growth sectors, partner industries to pilot or scale sustainable solutions, or invest alongside portfolio companies as they transition their businesses. We engage our major portfolio companies regularly on their climate transition plans as part of our efforts to achieve a decarbonised and carbon efficient portfolio. Against the backdrop of a growing portfolio, halving our net portfolio emissions over 2010 levels to about 11 million tCO2e by 2030 is a bold target that demands determined and sustained action.
Some of our portfolio companies have made strides in their transition plans. For example, Singapore Airlines is working with the Civil Aviation Authority of Singapore on a pilot to use sustainable aviation fuel in Singapore. Sembcorp Industries is working towards its sustainable solutions portfolio contributing to 70% of the Group’s net profit by 2025. And last year, Temasek and SP Group launched pilot trials of an interconnected and centralised cooling system across Tampines Central that could achieve energy savings and reductions in carbon emissions.
We have further formalised our portfolio engagement framework which helps us prioritise and target our engagement efforts with companies where we see the highest potential for impact. In our engagements with portfolio companies, we share our expectations around setting climate targets in line with science, drawing up compelling transition plans and providing relevant disclosures in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). To address the topic of physical climate risk, we have partnered a leading re-insurance provider to provide portfolio companies with a better understanding of their exposure to physical climate risks, while enabling us to have a better grasp on these risks at the portfolio level.
Our long term investment horizon puts us in a unique position to support companies to become more sustainable and adopt carbon abatement strategies.
In hard-to-abate sectors such as heavy industry and transportation, where broader system and technology changes are required for a successful sector transition, we play our part as a catalyst for change for our portfolio companies, bringing together relevant stakeholders and committing capital to support critical R&D advancement. Examples of this approach include our establishment of a new Centre for Hydrogen Innovations in partnership with National University of Singapore to advance research in areas of hydrogen production, transportation, storage and end-use applications that push technological frontiers.
We set up GenZero, a wholly owned investment platform company with operating capabilities, to catalyse and scale decarbonisation solutions globally. GenZero will focus on investing in technology-based solutions around carbon abatement and removal, nature-based solutions, and carbon ecosystem enablers that support the development of an effective and credible carbon ecosystem.
We continue to support our portfolio companies in building capacity for sustainability leadership and carbon management. In 2021, we partnered the Cambridge Institute for Sustainability Leadership in a pilot programme to build board and executive-management level capacity to drive a proactive sustainability and climate agenda. We have also continued to provide hands-on training on carbon measurement and disclosures for relevant operational teams of our portfolio companies.
The Temasek Portfolio Companies Sustainability Council brings together the CEOs and Sustainability Leads of our major portfolio companies twice a year to share successful sustainability strategies and forge potential collaborations on sustainability initiatives. Last year, the Council focused their discussions on sustainable urban solutions and carbon markets.
Discover more
