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Oversight, Ownership, and Accountability

Our internal governance approach ensures oversight, ownership, and accountability over our sustainability initiatives.

Temasek achieved full marks for the GSR Scoreboard (Governance, Sustainability and Resilience) and remained in the top tier of the major State-Owned Investors surveyed by Global SWF. The GSR Scoreboard is a comprehensive analysis of the governance, sustainability, and resilience practices of major State-Owned Investors including sovereign wealth funds and public pension funds. The assessment tool was first introduced by Global SWF in 2020 to jointly address important aspects such as transparency and accountability, impact and responsible investing, and long-term survival. It has become a widely recognised metric among sovereign wealth funds and pension funds globally and a barometer of the industry’s best practices. Temasek is among the world’s top 200 sovereign wealth funds and public pension funds being assessed.

Board Oversight

The Temasek Holdings Board, together with the Temasek Holdings CEO, has oversight of the overall portfolio and guides the collective leadership and management, working as OneTemasek to deliver on our T2030 strategy. Among other things, the Board is responsible for setting out Temasek’s strategic direction, while the Risk & Sustainability Committee supports the Board in overseeing the performance and progress of its sustainability initiatives.

The Board has separate and independent access to information and employees to assist it with its deliberations, including the opportunity to request supplementary or explanatory information from management. Management provides information to the Board on an ongoing basis to allow the Board to effectively discharge its responsibilities. This includes minutes of key management committee meetings and an annual update on the Environmental, Social, and Governance (ESG) risks and performance across the portfolio.

The following Board committees, each chaired by a non-executive Director who is independent of management, have been set up with specific delegated authorities:

Committee

 Key Responsibilities
Executive Committee (ExCo)  The ExCo is responsible for approving new investment and divestment decisions up to a defined threshold, beyond which, transactions will be considered by the Board. The ExCo also formulates and establishes policies to manage Temasek’s capital resource effectively and efficiently, as well as policies around asset management, liquidity management, and balance sheet management. In making decisions that manage and shape our portfolio, the ExCo also takes into account sustainability-related risks and opportunities, where relevant, among other matters. 
Audit Committee (AC) 

The AC is responsible for reviewing, among other things, our system of internal controls and processes used for financial reporting, audit, and monitoring compliance with laws and regulations and the Company’s code of ethics and conduct. The AC also reviews the scope and results of the external audits, and the independence of the external auditors.

Comprising only independent directors, the AC is supported by the Internal Audit team (IA), which performs planned reviews of key control processes for all offices. To ensure its independence and ability to effectively perform its functions, IA reports to the AC and has full and unrestricted access to all records, properties, and personnel.
Leadership Development & Compensation Committee (LDCC) 

The LDCC is responsible for overseeing leadership development and nomination matters, including identification, development, and succession planning of key management positions in Temasek, as well as the establishment of guidelines and policy frameworks for Board appointments and renewals. It also sets guidelines and policies on compensation and performance measurement, with a view to strengthening the link between pay and performance and attracting, developing, and retaining a highly competent management team.

In addition, the LDCC seeks to nurture and cultivate a strong, diverse, and internationally competitive Board and management team to support sustainable growth and Temasek’s long-term objectives. This includes the competencies necessary to oversee the organisation’s response to sustainability-related risks and opportunities, including climate-related risks and opportunities.

At the Board level, this is done by taking into account the combined skill sets of existing and potential Directors when considering the appointment of new Directors to the Board. Full biographies outlining the experience of each Director can be found under Our Board, demonstrating the Board’s capacity to discharge its duties.
Risk & Sustainability Committee (RSC)

The RSC is responsible for oversight of our portfolio risk appetite and risk profile in relation to reputation, returns, liquidity, resilience, cybersecurity, sustainability, and ESG matters. It also reviews our risk management and sustainability frameworks and policies, as well as monitoring material and relevant developments in risk management and sustainability to identify risks or opportunities, including the effects of climate change, that may impact Temasek.

The RSC coordinates with other standing Committees of the Board, such as the AC and the LDCC, in its oversight of risk and sustainability matters, where relevant. In particular, the RSC works with the LDCC to ensure that sustainability and risk management is properly considered in setting remuneration policies and decisions.

Senior Management Oversight

To enable disciplined decision making and execution, Temasek operates a management committee framework with clearly defined authorities delegated by the Board. These committees are chaired by the Temasek Holdings CEO and comprise members of senior management from across Temasek International, Temasek Singapore, Temasek Global Investments, and Temasek Partnership Solutions.

Committee  Key Responsibilities
Strategy, Portfolio and Risk Committee (SPRC)  The SPRC defines and shapes the investment portfolio and balance sheet, including capital structure, liquidity, and investment and divestment postures. It reviews macroeconomic, political, industry, technological, and social trends that shape opportunities and risks, and oversees Temasek’s risk framework, including derivatives, foreign exchange exposures, and hedging or portfolio overlay postures. In so doing, it integrates sustainability-related considerations, including climate change and climate transition planning, in the firm’s strategy, investment, risk, and operational management processes. 
Senior Divestment and Investment Committee (SDIC)  The SDIC manages and shapes our portfolio on an ongoing basis and decides on investments and divestments within Board-delegated authority limits. Investment proposals beyond these limits are escalated to the ExCo and/or the Board as warranted, with meeting minutes circulated to the Board to ensure transparency and oversight. In its considerations, it also takes into account sustainability-related risks and opportunities. 
Senior Management Committee (SMC)  The SMC reviews and sets overall management and organisational policies, including Board-approved internal controls, systems, and frameworks that support corporate governance and portfolio management. The SMC has also developed the Temasek Code of Ethics and Conduct (T-Code) and constituted the Ethics Committee to assist in its implementation. All employees are required to observe and comply with the T-Code. The SMC also oversees the implementation of corporate initiatives and processes within Board-approved frameworks, including sustainability policies, initiatives, and our institutional sustainability strategy. 

 

Further information on the responsibilities of each Committee, beyond sustainability, is available in Temasek Review 2026 and here.

Functional Capabilities

Senior management works with a dedicated team of functional experts supporting the delivery and evolution of Temasek’s sustainability strategies, frameworks, and programmes.

Reporting to the CEO, the Sustainability Group initiates, develops, and implements our overarching sustainability strategy and initiatives. As part of its remit, the Sustainability Group partners internal and external stakeholders to catalyse and invest for long-term positive impact; to support the transition to a net zero, nature positive, and socially inclusive world; to build a sustainable organisation; and to collaborate for global progress.

A dedicated ESG Investment Management (ESG IM) function supports the investment teams and committees in the integration of sustainability considerations across our investment lifecycle. Part of the Sustainability Group, ESG IM, comprising topic leads across climate, nature, and social, and market leads across our key markets, oversees ESG integration efforts pre- and post-investment as well as climate transition readiness across Temasek’s portfolio. ESG IM serves as a repository of ESG knowledge and expertise, partners with investment teams to analyse material ESG issues, and engages with portfolio companies to build portfolio resilience and help uplift their ESG practices. This includes identifying and assessing the emission profiles of our portfolio companies.

Through functional experts embedded across various teams, Temasek ensures that it has the appropriate skills, competencies, and knowledge to implement its sustainability strategy, including climate transition planning from an asset owner’s perspective.

Network of Sustainability Capabilities

Compensation Linked to Sustainability Goals

Our ownership ethos places the institution above the individual, emphasises long term over short term, and aligns employee and shareholder interests over economic cycles. Our compensation framework aims to foster a high-performing and responsible culture, where our employees think and act as owners with a strong sense of intergenerational duty, sharing gains and pains alongside our shareholder.

It balances rewards for short-term performance and long-term value creation. It also aligns our employees towards achieving both our financial performance and carbon emissions reduction goals.

To reinforce the commitment to our carbon emission goals, a portion of our Wealth Added incentive pool is ringfenced to be awarded as a performance-based long-term incentive. The vesting of this incentive is tied to the progress towards our carbon emissions reduction goals.

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