Temasek will work with, invest in emitters who commit to clear transition plan for carbon reduction
SINGAPORE: Instead of divesting emitters, state investor Temasek will work with and invest in those who commit to a clear transition plan for carbon reduction, said Temasek Holdings chief executive Ho Ching.
In her closing address at the Singapore Sustainable Investing & Financing Conference on Thursday (Sep 30), Ms Ho said this includes plans such as developing solutions like sustainable aviation fuel and nature-based offsets for “hard-to-abate” sectors.
“We debated and decided not to divest emitters just to tick the box, this does nothing to help the world decarbonise and it isn't the right thing to do,” she said.
Temasek has pledged to halve the net carbon emissions of its portfolio by 2030, compared with 2010 levels. It has also set a target of reaching net-zero by 2050.
On Thursday, Temasek and HSBC announced a new debt financing platform to fund sustainable infrastructure projects, and will invest a combined amount of US$150 million (S$203 million) in the initiative.
Urging businesses and investors to do more for the environment, Ms Ho said climate action is an investment opportunity that will uplift returns beyond 2030, and not simply a cost.
“One estimate puts the opportunity size at US$12 trillion a year by 2030, there is also potential to create millions of new jobs, as the world pivots to clean energy and other sustainable solutions,” she said.
She added that investors and businesses have common interest to deliver inclusive growth, and called on them to share collective responsibility.
“There are no returns from a dead planet or divided society ... as investors and businesses share a collective responsibility, with governments and the labour movement to ensure that there is a future for our workers and our people,” she said.
Ms Ho will retire as the CEO of Temasek Holdings and step down from its board on Friday, and will be succeeded by Mr Dilhan Pillay Sandrasegara.
On Thursday, Temasek Trust announced the appointment of Ms Ho to its Board of Directors with effect from Friday.
She will succeed Mr S Dhanabalan as Chairman of Temasek Trust, with effect from Apr 1, 2022.