PATHWAYS TOWARDS A
GREENER
FUTURE
Building a better,
smarter and more
sustainable world,
so every
generation prospers
From rising sea levels to record temperatures, the stark reality of climate change can no longer be ignored. To avoid the cataclysmic effects of global warming, drastic measures need to be implemented now by both the public and private sectors. While many countries are taking active steps to reduce national emissions and adapt to the impact of climate change, companies are working towards becoming carbon-neutral and seizing opportunities emerging from the green revolution.
As a purpose-driven investment company, Temasek plays its part by deploying capital to accelerate solutions that can help achieve sustainable returns over the long term. “Temasek is not merely a provider of financial capital, but we see our capital as seeding innovation, catalysing change and scaling growth through our expertise, network and partnerships,” said Ms Kyung-Ah Park, head of ESG investment management and managing director of sustainability at Temasek. “Realising a net zero future is a business imperative. We believe that our collective future will be defined by our ability to look not only at profits but importantly to embed sustainability in everything that we do.”
Temasek is committed to driving the transition towards a cleaner, sustainable and better world. As a firm, it has achieved and maintained carbon neutrality since 2020. At a portfolio level, it targets to reduce the net carbon emissions attributable to its portfolio to half the 2010 levels by 2030, and aim for net zero portfolio emissions by 2050.
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PATHWAYS TOWARDS ITS CLIMATE TARGETS
To reach its goals, Temasek has identified three pathways towards its climate targets. First, it invests in climate-aligned opportunities in seven key areas: water, waste, food, energy, clean transportation, materials, and the built environment. “We believe that to forge a more sustainable future and achieve impact at scale, we need a global economy-wide transformation that spans these areas,” explained Ms Park.
Second, Temasek enables carbon negative solutions by backing the development of infrastructure that facilitates climate-related investments, and investing in technologies that remove carbon. “As a member of the Taskforce on Scaling Voluntary Carbon Markets, Temasek works with global partners to enable a more transparent and liquid carbon market at scale – facilitating investments in high-integrity emissions abatement projects for a net zero world,” said Ms Park.
“We must stay committed to building a better world for current and future generations.”
In its pursuit of climate action for the benefit of generations, Temasek recognises that it cannot act alone. The growing climate crisis, along with public demand for a more sustainable future, means companies will need to embrace sustainability in their operations, prioritise it at board level and partner with others to effect systems change.
Finally, looking to the long term, Temasek encourages decarbonisation efforts among businesses in its portfolio. In hard-to-abate sectors, such as heavy industry and transportation, where carbon emission reduction is complex, Temasek serves as a catalyst for its portfolio companies’ transition to net zero – bringing stakeholders together and committing capital to advance innovative solutions.
“The three pathways form a holistic approach that scales innovative opportunities, forges partnerships to catalyse solutions, and accelerates the transition of Temasek’s current investment portfolio,” said Ms Park. “There are no returns on a dead planet. We must stay committed to building a better world for current and future generations.”
“We must stay committed to building a better world for current and future generations.”
MS KYUNG-AH PARK
HEAD, ESG INVESTMENT MANAGEMENT
MANAGING DIRECTOR, SUSTAINABILITY
TEMASEK
SUSTAINABILITY IS AT THE CORE OF
EVERYTHING
WE DO AT TEMASEK.
We believe in delivering positive social and environmental impact alongside financial returns.
The three pathways form a holistic approach that scales innovative opportunities, forges partnerships to catalyse solutions, and accelerates the transformation of our portfolio. Given the scale and urgency of the climate crisis, we need to harness all the tools in our toolkit, including transitioning the real economy.
We are at a critical juncture where we can change the trajectory of our collective future if we take the right actions today.
We have a responsibility to do good and do right by our wider community and our planet, so that we can do well as an organisation.
