Temasek Holdings, Singapore's state investment firm, has reaffirmed its commitment to achieving net-zero emissions by 2050, emphasizing that sustainable investments are not only environmentally responsible but also financially rewarding. Despite a slight decrease in the proportion of sustainability-aligned investments within its portfolio, the firm reported a significant increase in the absolute value of these investments.
In the financial year ending March 31, 2026, Temasek's sustainability-aligned investments accounted for 9.5% of its net portfolio value, a slight decline from 11% in the previous year. However, the total value of these investments rose by S$3 billion to S$49 billion, up from S$46 billion in the prior year.
Park Kyung-ah, Temasek's Chief Sustainability Officer, highlighted that the firm views sustainable investments as integral to building a resilient portfolio that delivers long-term returns. She noted that Temasek is a commercial investor, making investments based on returns, regardless of whether they are labeled as sustainable.
Over the past year, Temasek has invested S$5 billion in sustainable living trend-aligned investments. Notable among these is the sale of Indian renewable energy firm O2 Power to JSW Neo Energy in 2025 for US$1.5 billion, demonstrating the profitability of sustainable investments.
Despite these advancements, Temasek acknowledges challenges in meeting its 2030 climate targets, primarily due to its exposure to the aviation and power sectors. CEO Dilhan Pillay stated that the transition to a low-carbon economy is complex and non-linear, making it unlikely for the firm to meet its interim 2030 climate targets.
Nevertheless, Temasek remains steadfast in its long-term commitment to sustainability, focusing on investments that align with its net-zero ambition and contribute to a more sustainable future.