Sustaining Our Planet

We are heading towards a 4°C world. We must act now, together, to secure a more viable future for all.

Data and science point to the urgency of reversing the harm done to our planet. We have barely a decade left to achieve the 2030 United Nations Sustainable Development Goals (SDGs) while we race to urgently reduce and remove carbon emissions to avoid breaching the planet's tipping point of +1.5 degrees Celsius.

As an investor, we have a critical role to play in the successful transition to a net zero carbon economy by 2050. In September 2020, Temasek became a supporter of the recommendations of the Task Force on Climate-related Financial Disclosures. We are also encouraging our portfolio companies to identify and share consistent, comparable and forward looking information on risks and opportunities they face as a result of climate change. This information is essential for us, as we seek to support sustainable businesses with the aim of building an economy that is resilient to climate-related uncertainties.

Through collective efforts with like-minded partners, we catalyse ideas to achieve a better and more resilient world. We held the 6th edition of Ecosperity since 2014 — to twin ecology and prosperity as a sustainable pathway for growth. The ultimate goal is to achieve an abc World of active and productive economies, beautiful and inclusive societies, and a clean, cool Earth.

At Temasek, sustainability is at the core of everything we do. We strive to become more sustainable in the way we operate: embedding sustainability in our investment approach and encouraging our portfolio companies to embark on their own sustainability journeys.

Our Sustainability Goals

1 Figures are based on estimates for Scope 1 and 2 emissions.

2 Carbon dioxide equivalent (CO2e) is a standard unit used to compare emissions from different types of greenhouse gases.

Our belief in protecting the environment is underscored by our commitment to better managing the resources that we use in our operations.

Operating Sustainably

We achieved carbon neutrality for our company last year. By 2030, we aim to reduce net emissions attributable to our portfolio to seven million tonnes of CO2 equivalent, which represents half the estimated carbon emissions in 2010 and approximately a quarter of current emissions. This will be a decade long journey, working with our portfolio companies on their carbon reduction plans.

We started measuring our environmental footprint and have established a comparison of these key metrics over the past three years. We have developed ongoing plans to further reduce our emissions and resource use relating to our operations and have purchased carbon credits that will go towards supporting projects to offset the impact of our unavoidable emissions. While we are on a positive trajectory, there is more we can, and need to do.

For a detailed breakdown, please click here to view our emissions table

The carbon credits that we purchased to offset emissions resulting from our operations over this financial year, supported two forest restoration and conservation projects in Indonesia and Kenya. The project in Indonesia aims to prevent deforestation, peatland drainage and fires while the project in Kenya aims to protect and restore biodiversity and boost local employment.

Our staff have also championed several initiatives such as mass tree planting, to contribute to a more sustainable future.

Embedding Sustainability in our Investment Approach

We incorporate sustainability-related assessments when evaluating our investments. Our teams employ a broad-based research approach to assess company-level Environmental, Social and Governance (ESG) information, as well as relevant industry, thematic and macro sustainability considerations.

Even as we engage our existing portfolio companies on their carbon reduction plans, we actively seek out new investments which have track records of better carbon intensity and efficiency.

We will also seek out companies with business models that achieve carbon avoidance such as renewable energy and plant-based proteins, or carbon negative businesses and solutions that combat climate change, such as nature-based solutions.

We are exploring other opportunities to support sustainable solutions and climate actions, such as investing in carbon capture, sequestration and utilisation solutions, and developing a hydrogen economy.

Advocating Sustainability across our Network

Companies which manage ESG factors effectively, and recognise their importance, are more likely to create sustainable value over the long term. As an owner, we are committed to encouraging the companies in which we invest to embrace sustainable ways of doing business.

We have assessed the carbon footprint of listed companies in our portfolio and estimated the emissions for our private holdings. Key metrics, such as carbon intensity and carbon efficiency, will allow us to gain deeper insights into the carbon exposure of our portfolio and set the stage for targeted portfolio engagement activities.

We aim to collaborate with our portfolio companies to halve the net carbon emissions of our portfolio by 2030, and work towards achieving net zero carbon emissions by 2050. To help progress this goal, we will support our portfolio companies on their carbon measurement and reduction initiatives. Over the past year, we invited our Singapore-based portfolio companies to climate awareness sessions and shared with them knowledge and tools for carbon measurement and reporting according to international standards.

Califia Farms: Striving for Sustainability

Califia Farms has made its name with sustainable and healthy products such as non-dairy plant milk made from oats, almonds, and coconuts

The non-dairy milk produced by the company requires far less water and land compared to traditional dairy milk production. Production of non-dairy plant milk also emits up to 80% fewer greenhouse gases compared to dairy milk.

While the company has made strides on the sustainability front, it has not rested on its laurels.

Califia Farms constantly strives to reduce waste and the carbon footprint that results from various aspects of its operations including farming, production, and packaging

Its focus on sustainability starts with its raw materials. Since 2015, the company has ensured that it only uses almonds that are sourced and processed within a 20-mile (32-km) radius of its main bottling facility in Bakersfield, California.

The company's almond growers own honeybee hives, which allows them to control and monitor the health of the bees.

Califia Farms' almond growers in California's San Joaquin Valley ensure that the bees have access to areas of wild forage, which offers diverse sources of food.

To grow almond trees, farmers use an Integrated Pest Management system that reduces the need for herbicides, fungicides, and pesticides that can harm the environment. The company also taps a micro drip irrigation system and live weather monitoring technology to water the trees in its orchards. This has improved water efficiency in the orchards by over 30% compared to flood irrigation.

Califia Farms' almonds are grown in orchards and processed within a 20-mile (32-km) radius of its primary bottling facility in Bakersfield, California.

In terms of packaging, the company aims to halve its use of virgin plastic by the end of 2020. To achieve this, it will switch to lightweight and recycled plastic materials. Its products are shipped in foam-free packaging, which is an alternative to styrofoam. These packaging improvements are expected to reduce carbon footprint by 15%.

The company's bottling facility recycles 100% of the water it uses. The water is used again to irrigate local farms. More than 50 million gallons (189 million liters) of water are recycled every year.

100% of the water used at Califia Farms' bottling facility in Bakersfield, California is recycled.

Califia Farms is also working to sustainably source key ingredients such as coffee beans via a Direct Trade partnership. This ensure transparency in the process and allows farmers to be paid fairly.

Underscoring the company's emphasis on producing healthy food, it has recently launched two vegan butter spreads, which are made without trans fats, canola oil, or palm oil. It has also halved the sugar content of its drinks over the last five years.

SATS: Growing with Purpose

To SATS, operating sustainably is crucial not only because it is good for the environment, it also ensures long term business success.

In recent years, the food solutions and gateway services provider has focused its sustainability efforts on tackling food waste and reducing carbon emissions.

The company minimises food waste through careful planning of its menus. Menus are streamlined with the aim of reducing complexity of food preparation and minimising food loss. This entails making use of pre-cuts or ready-to-cook raw materials, and even "ugly" food that may not look perfect on the surface but has the same quality and freshness as unblemished ingredients.

SATS plans its menus carefully to minimise food loss.

SATS is also in the process of introducing a digital integrated supply chain to optimise its supply chain for catering, merchandise and supplies across its flight networks. The system provides the company with information on upstream supply and downstream demand. By tapping on this information, the company is able to synergise procurement functions across key markets and avoid over production of meals or over procurement of ingredients.

SATS conducted a trial using a digital waste management system to monitor the food waste produced at its kitchens.

As part of its drive to reduce carbon footprint, SATS has partnered Sembcorp to introduce a series of green solutions at several of its facilities. One of the solutions is the installation of solar panels across all air freight terminals owned by SATS. The solar panels will provide 13% of SATS' total energy consumption. With the completed solar installations, SATS expects to reduce 4.3 million kg of carbon dioxide emissions annually which is equivalent to emissions produced by 925 cars.

SATS is installing solar panels on the rooftops of all its air freight terminals to reduce its carbon footprint.

SATS has deployed electric tractors at the baggage departments across Changi Airport Terminals 2, 3 and 4.

SATS has also rolled out a 10-year master plan to transition fully from diesel ground support equipment (GSEs) to electric ones by 2030. This will allow the company to reduce environmental impact resulting from its operations and energy costs. It will work with Changi Airport Group to set up electricity charging points at the airside section of the airport. These charging points will be managed with a system that uses data and predictive analytics to optimise utility and resource scheduling.

Since 2017, 93 diesel GSEs, which are mostly tractors but also include some forklifts and pallet trucks, have been converted to electric ones. Some 78 electric tractors have been deployed at the baggage departments across Changi Airport's Terminals 2, 3 and 4 and another 220 more will be deployed this year.

Catalysing Ideas

Over the past year, we supported projects that improved the efficiency of resource management in Singapore's public housing estates and explored the potential of tapping on nature to mitigate climate change.

We worked with SP Group and the Ministry of Environment and Water Resources in Singapore on a pilot project to transform Tampines, a residential estate in the eastern part of Singapore, into an "Eco Town". Initiatives for sustainable living such as in energy, water, and waste management were introduced in Tampines. We also supported an initiative to install "Eco Boards" in several public housing blocks. These digital displays use data to provide real time updates of the blocks' aggregated electricity and water usage. Residents can also track their carbon footprint and pick up tips to lower their consumption. This initiative will enable the town council to develop more efficient resource management strategies.

We funded a study to understand how blue carbon, which is the carbon stored in coastal and marine ecosystems, such as mangroves and seagrass, can mitigate climate change in Southeast Asia. Findings were shared with groups in both the public and private sectors.

Engaging with our Partners

Our annual Ecosperity conference was first held in 2014. It brings together key decision makers — business leaders, policymakers, investors and civil society — to share insights and best practices on sustainable development. This year, the conference has been postponed to 2021 due to the COVID-19 pandemic, although we stepped up our regular engagements with our portfolio companies and the public through our Ecosperity Conversations series with more virtual sharing sessions. Highlights for the year included sessions on the environmental impact of our food in Singapore, energy transition pathways in Southeast Asia, and the ocean's importance to climate change.

We actively participate in investor and business networks that share our common vision of a future that provides equal opportunity and prosperity for all.

As a member of the Green Finance Working Group under the Monetary Authority of Singapore's Financial Centre Advisory Panel, we are actively involved in shaping recommendations to establish Singapore as a green finance node. We are also working with our portfolio companies to raise awareness of sustainable finance issues.

We are a member of the World Economic Forum (WEF), the Focusing Capital on the Long Term Initiative (FCLT Global) and the Sustainability Accounting Standards Board (SASB). We take part in dialogues which aim to promote responsible investing held by these organisations and others.

Together with Temasek Trust, we are represented on the United Nations Development Programme's Steering Group of SDG Impact, an initiative to develop impact measurement standards and promote global investments that achieve the SDGs. We also engage with like-minded partners who share our ambition of promoting investing for sustainability and impact, through forums such as the Global Impact Investing Network.

Active economy Productive jobs Sustainable cities Fulfilling lives
Beautiful Society Resilient individuals Inclusive communities Just societies
Clean earth Fresh air Clean water Cool world

An active, robust economy delivers good jobs and creates opportunities.

It is the foundation of stable, secure and sustainable societies. Productive workers can have a sense of pride and dignity, provide for their loved ones and themselves, and look to the future with confidence.

A beautiful and inclusive society fosters peace and justice, and enables individuals to reach their fullest potential.

Shared values that embrace justice and equality, and expand our common spaces, will strengthen our tolerance, mutual respect, and the ties that bind us together.

A clean, cool Earth is our home, a common space and heritage.

We must act today to preserve our living space for ourselves and our future generations. Fresh air, clean water and a cool world are Earth’s natural gifts, which we must treasure and protect as our legacy.

An active, robust economy delivers good jobs and creates opportunities.

It is the foundation of stable, secure and sustainable societies. Productive workers have a sense of pride and dignity, provide for their loved ones and themselves, and look to the future with confidence.

A beautiful and inclusive society fosters peace and justice, and enables individuals to reach their fullest potential.

Shared values that embrace justice and equality, and expand our common spaces, will strengthen our tolerance, mutual respect, and the ties that bind us together.

A clean, cool Earth is our home, a common space and heritage.

We must act today to preserve our living space for ourselves and our future generations. Fresh air, clean water and a cool world are Earth’s natural gifts, which we must treasure and protect as our legacy.

Doing our part for an abc World

Deepening our Commitment to Invest with Tomorrow in Mind

Organisations that manage Environmental, Social and Governance (ESG) factors effectively are more likely to create sustainable value over the long term. As we carry out our investment analysis, we work to understand how sustainability-related factors may impact a company’s long term ability to generate sustainable returns and its standing.

As an owner, we are committed to encouraging companies to adopt policies and practices that safeguard and enhance long term performance. We regularly engage and share sustainability best practices and trends with our portfolio companies.

We continuously evolve ESG integration efforts across our investment process. To deepen our capability, we make use of relevant data sources and tools to enable robust decision-making. We take part in domestic and international discussions about definitions, priorities, standards and best practices. We also monitor sustainability-related trends relating to issues that may significantly impact our portfolio and our investment activities, such as climate change.

Capturing Value in Sustainability

Climate change, resource scarcity and social inequality form the sustainability issues that confront us globally. While these macro trends appear challenging, they also offer new opportunities to make a difference. The rise of the “green” and socially conscious consumer, climate change, sustainability-related regulations and technological advances have fostered the growth of new businesses and business models.

We work to understand these trends in order to position our portfolio for the future, and to seek new investible areas to capture sustainable value for Temasek and our portfolio companies.

Addressing Long Term Sustainability Challenges

To realise our vision of an abc World, we need to address long term challenges affecting Singapore and the region. Challenges include demographic issues such as ageing, developing affordable solutions to feed a growing population, and mitigating the environmental impact from increasing urbanisation. We have supported long term capability building in these areas, especially when there is a lack of existing support or an under-appreciation of the need. This includes funding the development of innovative solutions and approaches by leveraging innovative technologies, research, trials and pilot programmes.

The Temasek Life Sciences Laboratory rears faster-growing and more resilient sea bass to improve farming productivity

Innovative Solutions for a Clean, Cool Earth

District Cooling and Airbitat for NDP
A hybrid system that cools outdoor air to as low as 24°C was introduced at the National Day Parade (NDP) 2017. Spectators at the floating platform, security screening areas and fun pack collection areas welcomed the streams of cool air that helped to reduce the heat that would otherwise be built up. This was made possible by tapping SP Group’s underground district cooling network at Marina Bay to provide chilled water for ST Engineering’s cooling unit – the Airbitat Smart Cooler.

A family enjoying the breeze from the Airbitat Smart Cooler

Sustainable Financing & Impact Investing Course

In partnership with Singapore Management University, a new course on "Impact Investing – Risks & Opportunities Arising from Environmental, Social, and Governance Issues” was held in March 2018, to improve knowledge and skills in the integration of ESG considerations into investment decisions. This education initiative aligns with strong growth trends in impact investing.