Decrease in Carbon Emissions at Portfolio Level, According to Temasek's Report
Temasek Raises Carbon Price and Advances Sustainable Investments
In a significant move towards combating climate change, Temasek, a Singaporean investment corporation owned by the government, has announced an increase in its internal carbon price by 30% to $65 per tonne of carbon dioxide equivalent (tCO2e). This decision marks a commitment to progressively increase the price to $100 per tCO2e by 2030.
The news comes as Temasek publishes its first Sustainability report, outlining its efforts in advancing sustainable investments. The corporation has already deployed S$3bn to the Sustainable Living trend, which encompasses areas such as food, water, waste, energy, materials, clean transportation, and the built environment.
One of the key partnerships driving this shift is the Carbon Transition Partners, a collaboration founded by Temasek and BlackRock in 2021. This partnership aims to advance investments in carbon capture strategies. In a separate initiative, Temasek and BlackRock have also launched Decarbonization Partners, with the first Decarbonization Partners fund closing in April at $1.40bn, surpassing its fundraising target of $1bn.
Temasek's portfolio reflects a conscious effort towards sustainability. Nearly a third of its assets are invested in Singapore, 19% in China, and 22% across the Americas. The transportation and industrials sectors, which tend to be harder to abate, account for 22% of the portfolio. Despite this, the Portfolio Weighted Average Carbon Intensity (WACI) has decreased from 116 tCO2e/S$M revenue to 92 tCO2e/S$M revenue.
The corporation's net portfolio value rose by S$7bn ($5bn) to reach S$389bn ($289.77), with the growth primarily driven by investment returns from the US and India, despite a downturn in China's capital markets. When marking its unlisted assets to market value, Temasek's portfolio value further uplifted by S$31bn ($23bn).
Notably, Temasek's total portfolio emissions dropped by 6 million tonnes of carbon dioxide equivalent (tCO2e) over the past financial year. This reduction, along with the corporation's commitment to sustainable investments, underscores its dedication to contributing to a more sustainable future.
In conclusion, Temasek's recent moves towards increasing its internal carbon price, advancing sustainable investments, and publishing its first Sustainability report demonstrate a clear commitment to combating climate change and promoting sustainable development. The corporation's focus on the Sustainable Living trend, partnerships with organisations like BlackRock, and success in the Decarbonization Partners fund are promising steps towards a more sustainable future.
Read also:
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Delaware's contentious offshore wind project faces uncertainty as the Trump administration reverses course on clean energy initiatives.
- Green Party leader Graf advocates for the shutdown of wood-burning power plants
