Our T2030 Strategy
Our T2030 strategy serves as our compass in a complex world and guides us to our North Star, our Purpose — So Every Generation Prospers.
Four Key Pillars
1. Resilient & Forward-Looking Portfolio
Constructing a portfolio that can withstand exogenous shocks and market volatility while focusing on sustainable growth over the long termWe focus on the construction of a resilient and forward-looking portfolio — one which is able to withstand exogenous shocks and perform through market cycles, while at the same time capitalising on growth opportunities with the potential for sustainable returns above our risk-adjusted cost of capital over the long term.
Such a portfolio comprises broadly two categories of investments: a resilient component which is held for the long term, and can provide stable and sustainable returns, and/or liquidity in the form of dividend income; and a dynamic component where investments are held for a shorter duration, and capital is recycled for investing in higher growth opportunities for higher returns.
We have three growth engines to help us build a resilient and forward-looking portfolio.
Three Growth Engines
1 Includes only key portfolio companies headquartered in Singapore.
Investment Engine: Delivering sustainable returns over the long term
- Makes up 91% of our portfolio as at 31 March 2024, consisting of:
- Singapore portfolio companies that have a consolidated revenue of about S$145 billion. They have been stalwarts for us and have, as a portfolio, delivered sustainable returns.
- Global direct investments which consist primarily of growth equity in companies with the potential to be market leaders and to be globally competitive. They also include early-stage investments, which account for under 6% of our portfolio. Such investments foster innovation and allow us to keep abreast of emerging technology and business models. We also invest in private credit and funds.
Partnership Engine: Scaling capital through partnerships
- Makes up 8% of our portfolio as at 31 March 2024, consisting of:
- Assets Under Management (AUM) businesses that have about S$83 billion of AUM and provide products like private equity, private credit, public market investing, and capital solutions; includes firms such as Seviora Holdings, Pavilion Capital, and Vertex Holdings.
- Other partnerships such as with LeapFrog Investments and Emerald Technology Ventures.
Development Engine: Identifying and building future-centric capabilities
- Makes up 1% of our portfolio as at 31 March 2024, including investments within our Temasek Operating System.
2. Sustainability at the Core
Embedding sustainability in all that 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 businessesWe believe that we have a part to play in aligning our investment activities and institutional practices towards protecting our planet, uplifting our communities, and fostering an inclusive environment for our employees and partners alike.
As part of our commitment to reduce the net carbon emissions attributable to our portfolio to half the 2010 levels by 2030 and achieve net zero by 2050, we remain focused on three pathways for climate action:
Investing for a low-carbon economy through solutions that seek to accelerate energy transition and decarbonisation across key sectors;
Encouraging decarbonisation efforts in our portfolio companies by supporting them in their business transformation and adoption of carbon mitigation actions; and
Enabling carbon markets solutions through approaches that support decarbonisation while conserving or restoring natural systems, including the strengthening of carbon markets infrastructure and ecosystem.
Our flexibility as an investor enables us to deploy capital purposefully to catalyse solutions and contribute towards the net zero carbon transition.
We have set an internal carbon price for the firm to embed the cost of carbon in our investment and operating decisions. Our internal carbon price is applied to each investment to better assess the potential climate impact, thereby enabling a greater focus on the long-term climate resilience of our portfolio. An initial carbon price of US$42 per tonne of carbon dioxide equivalent (tCO2e) was set in 2021, and subsequently raised to US$50 per tCO2e in 2022. Starting from 1 April 2024, we increased the internal carbon price factored into each investment to US$65 per tCO2e. We expect to progressively increase this to US$100 per tCO2e by 2030.
We apply an Environmental, Social, and Governance (ESG) framework across our investment process from pre-investment due diligence to post-investment activities. This enables us to better manage material risks, engage our portfolio companies to advance ESG practices, and strengthen portfolio resilience and alignment with our sustainability objectives.
Beyond addressing climate challenges, we deploy capital to generate positive social impact for underserved communities while achieving sustainable returns. Our impact investing strategy aims to address pressing challenges in areas such as financial services, healthcare services, education, agriculture, and climate, across emerging markets in Asia, Africa, and Latin America.
As a company, we uphold our commitment to carbon neutrality by harnessing all levers to reduce emissions from our operations. We continue to make strides through various initiatives and programmes.
To reinforce the commitment to our carbon emission goals, we apply a carbon charge against our portfolio performance. This carbon charge is taken from our Wealth Added incentive pool to be awarded as another type of co-investment grants tied to our carbon emission reduction targets.
3. Temasek Operating System
Building specialised capabilities in Artificial Intelligence (AI), Blockchain, Cybersecurity, Data & Digital, and Sustainable Solutions to bring value to our ecosystem and the marketplaceT-OS was built as a suite of specialised, next-generation capabilities which we believe will be essential skill sets for the future and could differentiate us as a value-adding investor and shareholder.
By setting up Centres of Excellence in the areas of AI, Blockchain, Cybersecurity, Data & Digital, and Sustainable Solutions, we are able to:
- Offer common services and critical skill sets to others in our ecosystem
- Grow and develop specialised talents with economies of scale, and offer them a wide range of career pathways within our ecosystem
- Innovate new applications, business models, and ventures
The T-OS co-creates solutions with our partners. Some of the ventures and companies we have set up as part of the T-OS are shown below:
Artificial Intelligence
Aicadium: A global technology company partnering Temasek’s portfolio companies to co-innovate and scale AI products, with an initial focus on industrial computer vision. Aicadium has partnered Temasek’s portfolio companies in industrial, manufacturing, and maintenance to apply AI-powered computer vision solutions to drive greater productivity and throughput. Use cases included productivity uplift, asset inspection, and quality control.
minden.ai: A technology venture to redefine the engagement between brands and consumers in Southeast Asia through the use of machine learning and AI. It launched yuu Rewards Club, a digital consumer rewards programme in Singapore, in strategic partnership with DFI Retail Group and its coalition partners BreadTalk Group, DBS, Foodpanda, Gojek, Great Eastern, PAssion Card, Mandai Wildlife Group, and Singtel. yuu has created tangible uplift in the engagement between its partners and consumers.
Resaro.ai: An AI assurance firm that offers independent, third-party testing of mission-critical AI systems. Resaro.ai accelerates responsible, safe, and robust AI adoption for enterprises through rigorous audits and stress testing to keep abreast of emerging regulatory requirements. Resaro.ai is also a premier member of the AI Verify Foundation launched by Singapore's Infocomm Media Development Authority, alongside Google, IBM, Microsoft, Red Hat, and Salesforce. As part of its membership, it seeks to further the open-source development of AI testing tools to encourage responsible adoption of AI amongst enterprises and the public sector.
Blockchain
Affinidi: A technology company on a mission to change data ownership for good, with a vision of a world where every individual can securely control, manage, and unlock value from their data through its Holistic Identity solutions. The Holistic Identity concept encompasses discovering, collecting, sharing, storing, and even monetising one’s data in the digital world.
Partior: A decentralised, global multi-currency network that makes digital clearing and settlement more efficient, reliable, and secure for financial institutions worldwide. It harnesses the key features of blockchain and smart contracts — programmability, immutability, and traceability — to offer an environment that allows multiple participants to share information and coordinate the settlement and clearing of financial transactions. Partior is backed by Temasek, DBS, J.P. Morgan, and Standard Chartered.
Marketnode: A financial market infrastructure operator powered by distributed ledger technology. The multi-asset platform looks to provide a one-stop data, workflow, and tokenisation service encompassing credit, funds, and structured products. This will ultimately help improve operational efficiency, lower time to market, and unlock new distribution channels and collateral optimisation opportunities. Marketnode is backed by Temasek and Singapore Exchange.
Cybersecurity
ISTARI: A global cybersecurity advisor and educator, supported by a comprehensive portfolio of solutions. As a trusted advisor, ISTARI guides clients on their cyber resilience journey by bringing together complementary and innovative capabilities for holistic solutions. A Cyber Resiliency Programme saw ISTARI product and services companies providing key solutions to Temasek’s portfolio companies. These include third-party risk monitoring, cybersecurity maturity assessments, and deploying operational technology products to protect industrial infrastructure.
Ensign InfoSecurity: One of Asia's largest pure-play, end-to-end cybersecurity service providers, collaborating with ISTARI to bring its global portfolio of cyber solutions to clients across Asia. Ensign has refined and patented advanced machine learning and deep learning technologies, culminating in a suite of proprietary detection models (AI-Powered Cyber Analytics). Grounded in behavioural analytics, these models provide Temasek’s portfolio companies with capabilities to detect and mitigate cyber threats.
Sygnia: A global company that delivers incident response services and provides security advisory services to strengthen cyber resilience. Through its unified Velocity platform, Sygnia also provides fully-managed detection, monitoring, investigation, and response capabilities that accelerates threat remediation to reduce business disruption. These capabilities support Temasek’s portfolio companies and other businesses in cybersecurity maturity assessments that uplift cyber capabilities and, in the event of a breach, provide access to leading incident response services.
Data & Digital
Temus: A Singapore-headquartered company that catalyses digital transformation of the private and public sector, set up in partnership with UST, a global digital services company. Temus offers end-to-end digital services that integrates technology, strategic advisory, AI/data engineering, and human-centred design, and has partnered several of Temasek’s portfolio companies, public sector agencies, and multinational corporations delivering complex transformation programmes with a value-centric mindset. Temus is committed to developing new digital talent and has launched a career conversion programme called Step IT Up, to provide those without any technology background with the opportunity to transition into the digital economy.
Sustainable Solutions
GenZero: An investment platform company that focuses on accelerating decarbonisation globally. It adopts a holistic investment approach across nature-based solutions, technology-based solutions, and carbon ecosystem enablers to drive positive climate impact, while generating sustainable returns. To build capability across the ecosystem, GenZero organises various activities to raise awareness about carbon markets and decarbonisation approaches. It also catalyses sector-wide collaborations involving Temasek’s portfolio companies in hard-to-abate industries such as aviation, and supports Temasek’s portfolio companies and other businesses with access to high-quality carbon credits, both directly and through its portfolio company, Climate Impact X.
4. Organisation, Talent & Capabilities
Focusing on our organisational and talent development to grow our people, capabilities, and teams for the futureWe take an active approach to focus on our organisational and talent development to ensure we remain relevant for the longer term. We continue to evolve our organisation design and structure for performance and accountability, building an empowering environment where our people can thrive.
Our talent agenda is aligned with our business strategy, ensuring we have a strong pipeline of next-generation leaders to stay competitive in a rapidly evolving business landscape. We develop diverse teams with multidisciplinary skillsets focusing on specialised and future-centric domains enabling our people to take on more complex challenges.
Workforce development is an integral part of business transformation. In line with this, our Workforce 4.0 Taskforce works with our portfolio companies, as well as the labour movement and government agencies in Singapore, to facilitate the development of a future-ready workforce.
We value diversity, equity, and inclusion, and are committed to creating an inclusive and cohesive work environment. Our Inclusivity@Temasek initiative continues to strengthen our diversity practices and reinforce our culture of belonging. These efforts include the Temasek Women’s Network, which supports and inspires our female colleagues in their career journeys.
Three Foundational Enablers
The four pillars in our T2030 strategy are underpinned by three foundational enablers, all of which are key to our success.
Networked
Organisation
Catalytic
Capital
Purpose
Culture
Values
First, we operate as a networked organisation, both internally and externally. Within the firm, we work collaboratively across teams and locations, harnessing both individual and cross-functional skill sets to achieve our institutional goals. Beyond the firm, we also augment our capabilities with that of our external partners and collaborators, so as to collectively address and create solutions for complex challenges of the future.
Second, our capital must be catalytic and help to create value and generate returns and outcomes across the four dimensions of financial, human, social, and natural capital. We provide financial capital to invest in innovation and growth; human capital to invest in human potential; social capital for social progress that will build resilience in societies; and natural capital to protect our planet for future generations.
Third, we instil a clear sense of purpose, build a culture of teamwork, and cultivate a strong set of values in our workforce to navigate the challenges and uncertainties ahead as a team. We aspire to help every generation thrive by empowering the well-being of our people, portfolio companies, partners, communities, and the planet we share as a common home. Importantly, we see the responsibility to do this not just for today’s, but also for future generations.
Our Purpose Statement, “So Every Generation Prospers”, underpins why we do what we do; and the accompanying Purpose Principles highlight our unique strengths as a firm.
We invest in human potential: We actively embrace diverse perspectives and skill sets, empowering the linear and lateral thinking of our people to realise their fullest potential both individually and collectively.
We catalyse solutions: Problem-solving with agility and investing with integrity, we mobilise financial, human, social, and natural capital to transform complex challenges into opportunities.
We build with courage: With conviction and courage, we turn ambition into actions that chart the course for those who come next.
We grow for generations: We steward and grow our portfolio, communities and the future, creating positive outcomes that will outlive us all.
As we move ahead, we look to our T2030 strategy as our compass to guide us to our Purpose. We will stay committed to doing well, doing right, and doing good to ensure that every generation prospers.
