On 9/7, Singapore’s leading investment fund released its sustainability report. This is the second year they have issued this report alongside their investment documentation. According to the report, Temasek invested 4 billion Singapore dollars (over $3 billion USD) in sustainable living during the last financial year (ending 3/31).
Last year, they partnered with Canada’s Brookfield Asset Management to invest in Neoen, a French renewable energy company.
New businesses in Temasek's sustainable investment portfolio include Aira, a Swedish clean energy solutions provider, and Amogy, a US-based company specializing in ammonia-to-power conversion.
The Singaporean investment fund also invested in Electra, a US-based low-carbon iron producer, and SarvaGram, a household finance provider in India.
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Neoen’s wind turbines on the dunes at Discovery Bay Coastal Park, Victoria, Australia. Photo: Neoen |
Neoen’s wind turbines on the dunes at Discovery Bay Coastal Park, Victoria, Australia. Photo: Neoen
Temasek also invests in partner funds such as the $500 million USD Leapfrog Climate Fund. This fund focuses on growth-stage companies in Asia and Africa, aiming to decarbonize sectors responsible for over 80% of emissions in these regions. For example, they invested $65 million USD in Series B funding for Battery Smart, India's largest battery swapping network for electric two-wheelers.
By region, Vietnam is classified within the Asia-Pacific market (excluding Singapore, China, and India). It benefits from demographic trends with a growing middle class. Temasek invests in public equities through a partnership with the investment management firm Dragon Capital. In March, during a meeting with General Secretary To Lam in Singapore, Temasek Chairman Lim Boon Heng expressed their interest in investing and continuing to cooperate on renewable and green energy in Vietnam.
Temasek aims to achieve net-zero emissions in its portfolio by 2050. In the past financial year, the carbon intensity of their portfolio reached 63 tCO2e per million Singapore dollars invested, a reduction of 10 tCO2e compared to the previous year.
As of 3/31, the value of Temasek's sustainability-linked portfolio reached 46 billion Singapore dollars (nearly $36 billion USD). Dilhan Pillay Sandrasegara, CEO of Temasek, acknowledged that investors are entering a new phase in global issues, and the impacts of climate change are becoming increasingly apparent.
"Inaction will undoubtedly come at a high cost," Sandrasegara said, adding that pursuing the net-zero ambition also presents economic opportunities worth trillions of dollars. This comes with shared benefits for health resilience, green job creation, and biodiversity protection.
Bao Bao
