Singapore state investor Temasek said on Wednesday that its sustainable living portfolio increased by about 7% to S$49 billion (US$38 billion) in the financial year ended March 31, 2026, driven by continued investments in businesses supporting the global energy transition.
The investor deployed S$5 billion into the sector during the year, backing renewable energy, electricity grid infrastructure and emerging clean technologies, despite reducing holdings in some assets, including O2 Power.
Temasek’s latest investments include India’s CleanMax, solar and energy platform Luminace, grid technology company Amperesand, and U.S.-based Commonwealth Fusion Systems, reflecting its focus on low-carbon energy solutions.
Of the total portfolio, S$42 billion is invested in companies whose products contribute to lower emissions, nature-positive outcomes and inclusive growth, while the remaining S$7 billion supports higher-emitting businesses transitioning to cleaner operations.
Temasek said its long-term ambition of achieving net-zero emissions by 2050 remains unchanged but acknowledged it is unlikely to meet its 2030 emissions target of 11 million tonnes of carbon dioxide equivalent.
The investor attributed the slower progress to rising electricity demand, higher financing costs, policy uncertainty and continued exposure to hard-to-abate industries that require longer transition timelines.
Portfolio emissions remained unchanged at 21 million tonnes in the year to March 2026, representing a 30% reduction from 2020 levels, although emissions are expected to rise temporarily following Sembcorp Industries’ acquisition of Alinta.
Director of Sustainability Strategy Jasmine Teo said Temasek remains committed to balancing its climate ambitions with commercial discipline when allocating capital across its investment portfolio.
Teo noted that real-world decarbonisation efforts can temporarily increase overall emissions as companies acquire and transform carbon-intensive assets into cleaner businesses.
The update highlights Temasek’s strategy of pursuing long-term climate goals while maintaining investment flexibility amid evolving market conditions and the challenges of the global energy transition.