In FY2025, Temasek deployed some $4 billion into “sustainability-focused investments” like renewables development platform Neoen and ammonia-to-power solutions provider Amogy.
With a total of $39 billion, this category of investments made up the bulk of Temasek’s $46 billion portfolio that is aligned with sustainable living.
The remaining $7 billion in Temasek’s sustainable living portfolio are “climate transition solutions”, and Mainboard-listed Sembcorp Industries falls under this category.
During the financial year, Temasek also entered co-investments and fund partnerships, such as a partnership with US investment firm Energy Capital Partners to acquire Atlantica Sustainable Infrastructure, a UK-based clean energy transition company focused on renewable energy. Atlantica also falls under the $7 billion “climate transition solutions” category.
Meanwhile, Temasek’s total portfolio emissions for FY2025 stayed flat y-o-y at 21 million tonnes of carbon dioxide equivalent (tCO2e), as strong travel and cargo demand at Singapore Airlines (SIA) offset a fall in emissions from Sembcorp and other portfolio companies.
This figure reflects Scope 1 and 2 absolute emissions associated with its investment portfolio, and excludes private equity, credit funds and other assets, according to Temasek’s FY2025 sustainability report, released alongside its annual report on July 9.
See also: From 2024: Five firms — including SIA and Sembcorp – form the bulk of Temasek’s portfolio emissions
SIA’s emissions at record high
Similar to last year’s inaugural standalone sustainability report, the bulk (82%) of Temasek’s total portfolio emissions came from five firms: SIA, Sembcorp, Olam Group, PSA International and ST Telemedia.
Aviation decarbonisation remains challenging and SIA contributed 43% of Temasek’s total portfolio emissions for the financial year.
SIA’s combined Scope 1 and 2 emissions grew 14% y-o-y to a record high of some 17.1 million tCO2e for the financial year ended March 31, according to its latest sustainability report.
For context, SIA’s Scope 1 and 2 emissions previously peaked at 16.5 million tCO2e in FY2019 and fell to a low of just under 4 million tCO2e in FY2021 owing to Covid-19 lockdowns.
SIA’s publicly available Scope 1 and 2 emissions data only goes back as far as FY2016, when it was just under 14 million tCO2e.
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SIA’s Scope 1 refers to direct emissions occurring from sources that are owned or controlled by the group, while Scope 2 refers to indirect emissions from the generation of purchased electricity consumed by its properties and offices.
In FY2024, Temasek posted a 6 million tCO2e fall in total portfolio emissions, which marked the first time this figure had sunk below the 22 million tCO2e logged in FY2011, Temasek’s chosen baseline year.
Temasek aims to halve emissions to 11 million tCO2e by FY2031 and reach net zero by FY2051.
During the financial year, Temasek engaged 17 “major portfolio companies” constituting 91% of total portfolio emissions.
According to Temasek, 14 of these 17 firms have targets to achieve net zero by 2050 or earlier.
In addition to the five major contributors to total portfolio emissions listed above, Temasek also engages “a larger universe of Singapore portfolio companies” like Seatrium, Keppel and “real estate companies”, says Park Kyung-Ah, chief sustainability officer at Temasek International.
Temasek’s “very broad portfolio” includes “very large public companies” like Microsoft, Visa and Mastercard, says Park to The Edge Singapore in a subsequent interview. “They have very clear [decarbonisation] targets. In the case of Microsoft, it’s even going back to its history and trying to actually decarbonise all of that.”
Hence, Temasek has to manage its resources and “right-size” its engagement, adds Park, responding to a question about the remaining 9% of total portfolio emissions that were not engaged in FY2025. “Where can we really have the biggest influence and the material outcomes, and also think about the resiliency of our portfolio where value creation opportunities are? Because we can’t engage with hundreds of companies in our portfolio.”
AI’s power use
Temasek’s fully-owned portfolio company ST Telemedia is the parent of ST Telemedia Global Data Centres (STT GDC).
According to Temasek, STT GDC has made “notable progress” on its carbon targets, despite being one of the world’s fastest-growing data centre providers.
For instance, STT GDC achieved its 2026 carbon intensity and renewable energy factor interim targets three years ahead of schedule by enhancing the energy efficiency of its portfolio and making operational improvements to its buildings, as well as leveraging renewable energy through onsite renewable installations.
STT GDC has committed to achieving carbon neutrality by 2030.
Still, Temasek notes the high energy demands of artificial intelligence (AI), which also require new scalable cooling technologies. “[STT] GDC has set a number of targets, including 85% renewable energy by 2028 and they’re well on their pathway towards achieving it,” says Park.
STT GDC has reached 78.5% renewable energy usage, according to the company’s latest sustainability report.
Other portfolio companies are also “leaning into data centres”, Park adds. “Keppel is another good example of [companies] doing green data centres and experimenting with even offshore data centres that enable [the] use of sea water cooling as well.”
Balancing act
Temasek has also presented its portfolio emissions in other forms to illustrate its progress on decarbonisation.
Temasek’s portfolio carbon intensity in FY2025, for example, fell to 63 tCO2e per million dollars of portfolio value from 73 tCO2e per million in the prior financial year.
Temasek has also more than halved (52%) this figure from its FY2011 baseline, which reflects that the carbon intensity of Temasek’s investment portfolio declined over time even as the portfolio grew.
Meanwhile, Temasek’s portfolio weighted average carbon intensity stayed flat y-o-y at 92 tCO2e per million of revenue.
This figure, which is down 23% since it was first reported in FY2023, looks at how much carbon each Temasek portfolio company emits for every dollar of revenue it generates.
Outside of Temasek’s portfolio emissions, the investment firm’s own operational carbon footprint rose slightly to 19,731 tCO2e for FY2025, though this was still under the pre-pandemic figure of 23,557 tCO2e notched in FY2020.
Temasek’s carbon intensity per employee rose 8% y-o-y due to higher emissions from business travel, though this was slightly reduced by the procurement of Renewable Energy Certificates by Temasek’s China offices.
Scope 3 emissions continue to be the biggest contributor to Temasek’s total operational emissions, and business travel accounted for 87% of Scope 3 emissions.
While there are 15 categories of Scope 3 emissions in total, Temasek has provided a breakdown for business travel and four other categories: emissions arising from purchased goods and services, fuel- and energy-related activities, waste generated in operations and employee commuting.
“We obviously do the hard work of trying to make sure that we can avoid emissions as best we can,” says Park, “but we also have to do business. As a global investor, we do travel.”
To offset the impact of these work trips, Temasek began procuring sustainable aviation fuel (SAF) certificates for the first time in FY2025. According to the sustainability report, Temasek purchased SAF credits to offset 155 tCO2e of Scope 3 emissions arising from business travel.
“We feel that’s an important way of also catalysing new technology by providing that signal to the market that we need decarbonisation solutions in that particular industry,” says Franziska Zimmermann, managing director, sustainability, at Temasek International.
Tables: Temasek, SIA
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