Our T2030 Strategy

We 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.

We 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.

T-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:

We 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. 

Our Foundational Enablers

The four pillars in our T2030 strategy are underpinned by three foundational enablers, all of which are key to our success.

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.