Beyond Traditional Capital Structures
We deploy capital with purpose — advancing sustainability, enabling climate transition, and catalysing impact — while delivering long-term sustainable returns. Through commercial and flexible capital, we aim to unlock scalable solutions and build a more inclusive and resilient future.
Deploying Capital with Purpose
At Temasek, we deploy capital with the aim of building a resilient and forward-looking portfolio that delivers long-term sustainable returns. This includes investing in opportunities that enable companies to transition to a more sustainable future and continuously increasing our investments aligned with the Sustainable Living trend. While maintaining a commercial approach across our normal course of investments, we recognise that accelerating progress, particularly in Emerging Markets and Developing Economies (EMDEs), often requires more than traditional capital structures. By committing flexible and catalytic forms of capital where appropriate, we aim to unlock private sector investment, crowd in capital from like-minded partners, and amplify impact to contribute to a more resilient and sustainable world.
Investing for Sustainable Long-Term Value Creation
As a commercial investor, we prioritise investments that drive long-term sustainable returns while addressing pressing global challenges.
A. Sustainable Living Trend-Aligned Investments
We invest in businesses that contribute positively to our long-term vision of net zero, nature positive, and inclusive growth. These investments span companies whose products and services enable a more sustainable future, and climate transition investments in high-emitting sectors that are actively shifting towards lower-carbon solutions. We recognise that being a responsible investor is not only about reducing our financed emissions, but also about enabling real economy emissions reductions through financing the transformation of high-emitting sectors to drive systemic change.
B. Impact Investments
As a subset of our Sustainable Living trend-aligned investments, our impact investments are targeted towards achieving measurable impact, primarily in EMDEs, with an emphasis on environmental or social outcomes. Our dedicated Impact Investing team ensures that each investment by the team in impact funds or businesses is guided by a clear impact thesis and assessed using our proprietary impact framework for impact investing. This allows us to deliver positive, measurable environmental or social outcomes while achieving sustainable returns over the long term.
Bridging the Climate Finance Gap
The ability to leverage diverse pools of capital provides us with the flexibility to drive meaningful progress and support high-impact projects that may be challenging to realise within the constraints of traditional capital structures.
C. Blended Finance to Unlock Scalable Solutions
Blended finance supports innovative climate solutions by bringing together public, private, and philanthropic capital with differentiated risk-return profiles. It allows us to participate in structured investment vehicles where concessional capital plays a catalytic role in addressing real or perceived risks, thereby unlocking commercial investment. Blended finance enables the scaling and deployment of green technologies in EMDEs. By integrating policy support, development finance, long-term offtakes, and project funding for first-of-a-kind commercialisation, it seeks to address the higher perceived risks of implementing established solutions like renewable energy in EMDEs.
D. Concessional Capital as Catalytic Funding
In conjunction with our 50th anniversary, we set aside S$100 million of our community gifts as Concessional Capital for Climate Action (CCCA). It will play a catalytic role in mobilising the broad spectrum of capital required to close the climate finance gap, particularly in EMDEs, where capital is scarce yet most needed. We recognise that certain climate solutions may not attract adequate commercial financing without risk-tolerant or flexible capital to unlock the investment case. Our concessional capital will be deployed strategically to reduce perceived risks and improve the investability of high-impact opportunities, thereby creating a multiplier effect.
