Sustainability at the Core

Dear Stakeholders,

I am delighted to present our inaugural standalone sustainability report. As we celebrate our 50^th anniversary, we are proud to share the progress we have made on our journey.

In an era of unprecedented global challenges, and against the backdrop of a volatile, uncertain, complex, and ambiguous – or VUCA – world, sustainability, alongside good governance, has emerged as a driver of long-term portfolio resilience, value creation, and growth.

As an asset owner, our long-term success hinges upon a thriving and resilient portfolio. Therefore, we view our efforts on sustainability not only as the right thing to do, but also as an essential enabler for our mandate to deliver sustainable returns over the long term, in line with our Charter.

The transition to a sustainable economy presents us with new opportunities to invest for returns and impact. We make use of our flexibility to deploy capital across different opportunities – be it in sustainable solutions, in the transition of sectors from brown to green, or in the enablement of new markets such as carbon markets.

At the same time, climate change, nature loss, social inequalities, and regulatory shifts also present us with new risks. By integrating Environmental, Social, and Governance (ESG) factors into our investment decisions, we proactively identify and manage risks that could impact the value of our portfolio. 

As we navigate the transition, we remain open to adapt our strategies as our knowledge on the issues and their interdependencies evolves. We seek to position ourselves as a forward-looking organisation by adopting and advocating for best practices, so as to capitalise on value creation opportunities.

The publication of our sustainability report is a testament to our commitment to transparency and accountability. By sharing our sustainability goals, practices, and performance, we aim to foster trust and engage in meaningful dialogue with our stakeholders.

We do so by taking into consideration the disclosure requirements issued by the International Sustainability Standards Board, reinforcing our support to globally harmonised and comparable disclosures. 

As we embark on the next chapter of our sustainability journey, we remain steadfast in our commitment to long-term portfolio resilience. We are committed to deploying our capital with impact, integrating sustainability into our investment decisions, and seeking collaborative partnerships to address global challenges. Together, we can build a sustainable future – So Every Generation Prospers.

Thank you for your continued support and partnership as we work towards a more sustainable and prosperous world.

Dilhan Pillay SANDRASEGARA
Executive Director & Chief Executive Officer,
Temasek Holdings & Temasek International
July 2024

Our T2030 strategy serves as our compass in a complex world and guides us to our North Star, our Purpose.

Sustainability at the Core is one of the four key pillars of our T2030 strategy. It anchors our commitment to embed sustainability into everything we do – from our mandate to deliver sustainable returns over the long term, to our strategy of how we operate as an institution, shape our portfolio, and engage our portfolio companies to build sustainable businesses.

We believe that our long-term success as investor and institution is contingent on the presence of thriving businesses and economies, cohesive societies and communities, and resilient people and planet.

Our ability to play our part by aligning our investment activities and institutional practices towards protecting our planet, uplifting our communities, and fostering an inclusive environment for our employees and partners is rooted in the strength and resilience of our own organisation and portfolio.

Therefore, we focus on building a sustainable institution with a resilient business model to deliver long-term sustainable returns and value to our shareholder.

As an asset owner, we also seek to add value to our portfolio companies in their journeys to build sustainable businesses, thereby strengthening portfolio resilience over time.

Financial, organisational, and portfolio resilience enables us to adopt a long-term horizon in capital deployment and contribute to protecting our planet, uplifting communities, and building inclusive societies across generations. 

To do so, we embed principles of sustainability, inclusivity, and good governance in our processes, and anchor ourselves with a strong set of values.