Investing with Tomorrow in Mind

Certain of our investment activities are aligned to four structural trends that shape our long-term portfolio construction. Within these, we expect over time to increase our exposure to the Sustainable Living trend by directing capital toward companies whose products and services advance environmental or social objectives.

We are also prepared to selectively invest in climate transition opportunities and take a more proactive stance as an asset owner. By deploying capital where it can unlock progress, we aim to provide greater certainty and/or additionality to the decarbonisation trajectory, capture value uplift from transition, and contribute to measurable real economy impact.

Classifying Sustainable Living Investments

We have established a proprietary classification framework that identifies two categories of investments that align with the Sustainable Living trend:

• Sustainability-focused investments: These are companies whose products and services directly contribute to our long-term vision of net zero, nature positive, and inclusive growth.
• Climate transition investments: These are companies in high-emitting sectors actively transitioning toward climate‑aligned products and services, including those in clean energy, power and energy infrastructure, and energy transition commodities.

Our framework has been externally reviewed and benchmarked against global taxonomies and industry practices, and we continue to review and update it to reflect evolving standards and market practices.

Sustainable Living Trend-aligned Portfolio at a Glance

As at 31 March 2026, our Sustainable Living trend-aligned portfolio stood at S$49 billion¹ — comprising S$42 billion in sustainability-focused investments and S$7 billion in climate transition investments. Over the year, we deployed S$5 billion in new Sustainable Living trend-aligned opportunities.

We conduct regular reviews of the Sustainable Living trend-aligned portfolio to account for corporate actions such as mergers, acquisitions, and restructuring. These events may lead to material changes in a company’s business, operations, or capital structure, which could in turn affect the sustainability attributes associated with the company.

We also recognise adaptation and resilience (A&R) as an emerging focus area within investments that are aligned with the Sustainable Living trend, with such investments delivering a diverse range of environmental and social benefits.

¹ Made up of listed and unlisted investments aligned with the Sustainable Living trend; and excludes other assets and liabilities.

For an asset owner, climate positive impact extends beyond portfolio decarbonisation. It is about investing in solutions that enable greenhouse gas (GHG) emissions reductions in the real economy.

We continue to grow the green economy through targeted investments in decarbonisation solutions. Examples include clean and renewable energy, clean transportation, energy efficiency solutions, water, green buildings, and materials.

To underpin this work, we have developed an internal framework to pilot the measurement of climate positive impact. At the pre-investment stage, we estimate the amount of emissions that could be avoided or removed, based on the expected amount of products and services delivered by the company during our holding period. Post-investment, we are starting to track the realised climate positive impact measured by our portfolio companies and investment platforms, beginning with those that already measure and report such impact and are backed by external verification. We are also reviewing methodologies and data sources to inform our internal framework to ensure integrity. 

The framework references emerging frameworks globally as well as lessons from our portfolio companies and platforms that have embarked on the journey. Building on this foundation, we will continue to refine our approach as we incorporate insights gained from the pilot and adapt as global frameworks evolve.

Global electricity demand is surging, fuelled by rapid Artificial Intelligence (AI) adoption and electrification. Balancing energy affordability, reliability, and accessibility is no longer only a policy goal — it has become an operational necessity in an era where geopolitical friction increasingly threatens the stability of the global energy transition. Recent events in the Gulf serve as a reminder that fossil fuel systems remain vulnerable to geopolitical shocks and supply disruptions.

Meeting these challenges requires a holistic systems approach. This includes rapidly scaling renewables where they are the fastest-to-market and most cost-effective energy option, broadening the energy mix to include other low-carbon solutions, strengthening grid resilience and flexibility, and harnessing AI to accelerate sustainability outcomes across power systems and sectors with significant energy needs.

Scaling Clean and Renewable Energy

Over the year, we expanded our investments in renewable companies and platforms:

• CleanMax - An India-based renewable energy company with approximately 3 GW of operating capacity. It provides solar, wind, and hybrid renewable power solutions, alongside energy services and carbon credit solutions, with a focus on serving commercial and industrial customers.
• Luminace - One of North America’s largest owners of distributed energy assets, with over 1,500 MW installed generation capacity. The company delivers decarbonisation-as-a-service solutions, helping more than 10,000 customers in the commercial, industrial, municipal, education, utility, and community solar sectors, supporting their transition to sustainable power.
• PCG Power - A China-based company focused on investment management and operations for distributed clean energy systems. With 2 GW of accumulated developed capacity, PCG Power plays a key role in advancing China’s commercial and industrial distributed clean energy sector, while expanding integrated energy management solutions.

Several of our existing renewable investments achieved important milestones and stronger market validation:

• GCL - A China-based green technology company specialising in renewable energy solutions spanning wind, solar, and energy storage. During the year, GCL accelerated the commercial rollout of perovskite photovoltaic which has the potential to deliver higher-efficiency and lower-cost solar power. In June 2025, the company started operating the world’s first large-scale tandem solar module factory, showing that the technology is ready to move beyond small pilots.
• Neoen - A France-based integrated global developer and operator of renewable energy projects with a diverse portfolio of solar, wind, and battery storage assets representing 9 GW of total capacity in operation and under construction. During the year, Neoen began delivering solar power to SNCF Voyageurs under long-term power purchase agreements, reinforcing the bankability of its projects. It also progressed new solar and wind construction and expanded its role in grid flexibility through new battery partnerships and grid-stability initiatives globally.

Diversifying Baseload Energy Options

An uninterrupted power supply with a diverse baseload energy mix is essential. This is particularly crucial for regions that face land constraints for renewables deployment. Over the year, we made selective follow-on commitments and saw milestone achievements across a range of baseload and enabling technologies:

• Commonwealth Fusion Systems (CFS) – A US-based private fusion company advancing plans to build the world’s first commercial fusion power plant, targeting net electricity generation in the early 2030s. In June 2025, Google signed an offtake agreement for 200 MW of clean fusion power from CFS’s inaugural ARC power plant in Chesterfield County, Virginia. In January 2026, CFS completed and delivered its first, super-strong toroidal field magnet for its SPARC demonstration reactor.
• Westinghouse – A US-based global provider of nuclear reactor technology and nuclear fuel. In October 2025, Westinghouse, Brookfield, and Cameco entered into a strategic partnership with the U.S. government to accelerate nuclear deployment. At the centre of this initiative is the planned construction of at least US$80 billion of new reactors across the United States, deploying Westinghouse’s AP1000® and AP300™ technologies.

While we have not made any direct investments in natural gas to date, we recognise that natural gas is expected to remain a material part of the global energy mix for the foreseeable future. This is particularly the case in regions such as Singapore and broader Asia, where energy needs and system constraints remain significant.

At the same time, we believe any role for gas must be approached responsibly to avoid long-term lock-in effects and methane leakage, given that methane can be 80 times more potent than carbon dioxide on a 20-year timescale¹. In support of this, we developed a natural gas framework during the year, which we have shared with other investors and companies.

This framework requires careful consideration of (i) sourcing from gas fields with low fugitive methane emissions and strong leak prevention validated by robust field measurements; (ii) ensuring that pipelines are well maintained to minimise methane leaks; and (iii) building gas plants with eventual direct abatement strategies in mind, such as carbon capture and storage or fuel blending with biomethane, low-carbon hydrogen, or both.

Enhancing Grid Resilience

In addition to firm power, we view digitalisation as a key enabler of grid resilience. As energy systems adapt to surging electricity demand and renewable energy integration, grids must become more efficient, reliable, and responsive. Advanced data analytics and AI can optimise grid utilisation, resolving capacity constraints while accelerating smart electrification.

• Amperesand – A US- and Singapore-based company developing solid-state transformer systems designed to intelligently integrate direct current loads, such as data centres and megawatt electric vehicle charging, into power grids, thereby enhancing overall grid reliability and efficiency. Since starting out as a venture built by Xora using intellectual properties developed by Nanyang Technological University, the company recently closed an oversubscribed US$80 million Series A financing and established new engineering and advanced manufacturing hubs in San Francisco and Reno. These developments reflect continued commercial momentum and growing market interest in the company’s AI power infrastructure solutions.
• Atlantica Sustainable Infrastructure – A clean energy transition company operating a diversified portfolio primarily in the US, Spain, and Latin America. It has over 2.7 GW of gross renewable energy capacity, 300 MW of conventional power, more than 1,300 miles of transmission lines, and growing storage capacity. Atlantica continues to develop new renewable energy capacity and recently closed the acquisition of a Canadian renewables platform, adding operating clean‑power assets alongside a visible development pipeline. It also announced the acquisition of a long‑term contracted transmission line in Uruguay, reinforcing grid capacity that supports integration of renewables.
• Form Energy – A US-based long duration energy storage company driving innovation in energy manufacturing and technology to support a clean, secure, and reliable electric grid. During the year, it partnered with Xcel Energy to deploy a 300 MW/30 GWh iron-air battery system for a Google data centre in Minnesota. With more than 75 GWh of commercial projects under agreement, Form Energy is demonstrating the commercial relevance of its 100-hour battery technology in supporting grid reliability and addressing the growing energy demands of hyperscale digital infrastructure.
• NARI Technology – A China-based provider of smart grid and power automation technologies that enable large‑scale integration of renewables. As of 2025, NARI Technology had deployed next-generation wide-area protection and control systems that manage over 1,800 GW of renewable energy capacity nationwide, supporting the stable integration of large-scale intermittent resources into the national grid and demonstrating its technology development process at scale.
• Antora (portfolio company of Decarbonization Partners) – A US-based thermal energy storage solutions provider, leading the electrification of heavy industry with zero-carbon heat and power. Antora’s cutting-edge thermal battery technology harnesses low-cost intermittent renewable electricity, storing it as high-temperature heat in carbon blocks and providing reliable clean heat for industrial customers. This year, Antora has produced its first steam at its first-of-a-kind POET ethanol project, marking a major commercial milestone for the company in creating tangible decarbonisation impact.
• GridCARE (portfolio company of Xora) – A US-based energy technology company providing AI‑enabled flexibility solutions to enhance grid efficiency and accelerate speed‑to‑power, supporting more resilient and responsive energy infrastructure. 

Leveraging AI to Support Advancement of Science and Engineering

AI for science and engineering is emerging as a key enabler of sustainability by accelerating innovation across materials and product development. By shortening the discover–test–deploy cycle, AI enables faster identification of high‑performing materials and more efficient product design.

When integrated into engineering workflows, AI‑enabled simulations support quicker design iteration and more efficient use of resources. This can reduce time‑to‑market and lower research and manufacturing costs, while delivering energy‑efficiency gains in high‑impact sectors, where incremental improvements can translate into meaningful emissions reductions at scale.

We are systematically growing our exposure to AI-related investments across the AI value chain to capture opportunities in a fast-evolving landscape, while maintaining a disciplined, long-term approach. This includes AI innovators such as CuspAI, a UK-based company that applies generative AI to accelerate the discovery of novel materials, addressing fundamental technology bottlenecks across several high-impact domains. Its platform is designed to compress the traditional materials discovery timeline from decades to years, enabling breakthroughs in next-generation clean energy technologies, advanced semiconductors, and solutions to pressing environmental challenges — including materials capable of removing per- and polyfluoroalkyl substances (PFAS) from contaminated water sources.

We continue to build strategic partnerships across different investment stages to accelerate outcomes on climate and inclusive growth, crowd in like-minded capital, and tap on synergistic capabilities.

• Partnership with Brookfield in Brookfield’s Global Transition Fund II (BGTF II) and Catalytic Transition Fund (CTF). BGTF II raised US$20 billion in fund commitments and strategic capital during the year, making it the world’s largest private fund dedicated to the transition to clean energy. Through CTF, Brookfield has made its first renewables investments in Southeast Asia, such as clean energy developer Alba Renewables. 
• Collaboration with BlackRock for Decarbonization Partners, which has since expanded into a 15-company global portfolio. Recent investments include osapiens, a Germany-headquartered AI-driven enterprise supply chain software platform for compliance and sustainability management, and EPG, a Singapore-headquartered provider of modular and prefabricated data centre infrastructure, enabling cost-effective and energy-efficient cloud and AI deployment.
• Strategic partnership with LeapFrog Investments through the LeapFrog Climate Investment Strategy. During the year, LeapFrog invested in ReNew Green, a renewable energy platform expanding clean power capacity in India, and continued to support Battery Smart, a battery-swapping network improving access to clean mobility for low-income drivers in India.

We remain committed to driving and facilitating climate action through various financing platforms and mechanisms, mobilising capital for decarbonisation, and increasing the bankability of sustainable projects in Asia.

• In 2025, Clifford Capital issued its sixth and seventh public infrastructure asset-backed securities (IABS) totalling US$1.23 billion. This was followed by Bayfront VIII in April 2026, a US$733.3 million issuance — its largest offering to date — which brought the cumulative IABS issuance to US$4.7 billion across both public and private markets. It has also been appointed as the manager of the Energy Transition Acceleration Finance (ETAF) partnership under Singapore’s Financing Asia’s Transition Partnership (FAST-P), which focuses on replacing or displacing carbon-based power generation.
• GenZero invested in BTG Pactual Timberland Investment Group, one of the world’s largest timberland managers, which aims to mobilise US$1 billion to conserve, restore, and reforest degraded landscapes in Latin America. To scale demand for high-integrity carbon credits, GenZero also forged a strategic alliance with Tencent, unlocking potential demand for at least one million credits over 15 years.
• The Green Investments Partnership (GIP), a blended finance partnership under FAST-P, has achieved its second close in May 2026, bringing total commitments to US$800 million. Temasek contributed both commercial and concessional capital — the latter ringfenced from our community gifts — demonstrating our ability to deploy capital across the risk-return spectrum within a blended finance vehicle to crowd in additional capital and enhance project bankability. Pentagreen Capital is the manager for GIP.

Our impact investing strategy remains guided by a clear dual mandate: to deliver measurable positive outcomes for underserved communities in emerging markets while generating sustainable long-term returns.

We continued to build our portfolio in a deliberate and disciplined manner, deepening engagements with our portfolio fund managers and companies to drive value creation beyond capital. Over time, our proprietary Impact Measurement and Management framework has matured and is now consistently applied across the portfolio to strengthen rigour, accountability, and alignment with global best practices.

During the year, our impact investments provided essential goods and services across healthcare, financial inclusion, and climate-related sectors to 57 million customers, of which 45 million were underserved, and supported 85,000 jobs. These outcomes reflect our focus on enabling sustained economic participation and improving resilience at the household and community levels.

Since the inception of our impact journey, we have accumulated valuable insights into what makes impact both meaningful and investable. As climate volatility, infrastructure gaps, and uneven access to essential services reshape emerging markets, resilience has emerged as a defining investment lens. Across sectors, we consistently observe three investable dynamics that underpin scalable and sustainable impact:

1. Digitalisation as an Inclusion Multiplier: Digital platforms reduce cost-to-serve, extend reach, and improve efficiency. Yet true inclusion occurs when the benefits of technology extend beyond access to enable sustained economic participation — strengthening household buffers, improving productivity, and increasing resilience to shocks.
2. Localisation Builds Trust and Adoption: In markets where formal systems may lack depth or trust, locally embedded distribution, agent networks, and community-centric models accelerate adoption and long-term engagement.
3. Sustainability Must Make Economic Sense: Climate-smart solutions scale fastest when they achieve cost competitiveness or total cost of ownership parity, turning environmental resilience into economic advantage.

These principles are reflected in our portfolio.

Portfolio Case Studies

Looking Ahead

As impact markets mature, we remain focused on scalable models where digitalisation deepens inclusion, localisation builds trust, and sustainability aligns with economic logic. By deploying capital at scale into resilient business models, we aim to strengthen communities so that they are not only able to withstand shocks but also thrive across generations.