From his vantage point in Champoluc, a ski village in North Italy’s Val d'Ayas, Clemente Castellucci contemplates the snow-covered slopes he has skied on since he was a boy.

“The mountain environment has changed drastically over the last 20 years. I remember where the glacier ended when I was a child, and I can see where it ends now – it’s scary, and it’s sad,” says the 32-year-old, a Vice President with Temasek’s Europe, Middle East and Africa (EMEA) team in London. “The question is how can we change, or at least slow down, the effects we are seeing.”

He believes that climate technology will play a key role, one that Temasek’s London office is ideally positioned to support and scale.

It’s a sweet spot where potential and resources meet. Europe, Clemente points out, is at the forefront of decarbonisation and climate innovation. “There are many businesses, local and global, large and small, that are trying to enable the energy transition,” he says. “But to have an impact, they need resources. This aligns perfectly with Temasek’s goal to drive the planet closer towards climate resilience.”

For Clemente, who faithfully returns to the slopes of Champoluc each Christmas, it is a goal that resonates. “It has personal meaning to me, but it does not only impact my life. It will impact the lives of generations to come.”

Fighting for the future

A former investment banker with Morgan Stanley, Clemente joined Temasek in 2017 as the company began shaping its portfolio around four structural trends: digitisation, future of consumption, longer lifespans and sustainable living. A core focus of the last is climate resilience.

“It acts as a filter at the top of the funnel to help narrow down the opportunities that make sense for us,” he says. “The purpose is not only to generate sustainable returns, but also to support companies that we believe can have a long-term impact on real-world challenges, and help them grow.”      

One of these is Danish company Topsoe, a family-owned chemical business that Temasek invested in in 2019. “Since our investment, the business has evolved significantly, and has developed the expertise and products to be a global leader in carbon emission reduction technologies. They are among the first in Europe to build production capacity for Solid Oxide Electrolyser Cells (SOEC), a technology needed for the production of green hydrogen. It’s a big task they are taking on,” he says. “I believe they found in Temasek an investor that shares their vision and purpose.”

Especially in climate-related investments, the patient nature of Temasek’s capital plays a key role, says Clemente.

“We can be very optimistic about how the energy transition will go, but the truth is that the timeline can be affected by external factors we have no control over, from public policies to geopolitical friction. Temasek’s long-term horizon and ability to weather short-term bumps and headwinds puts it in a unique position to support promising technologies,” he says. Additionally, it opens up the playing field, giving companies like Topsoe access to an ecosystem of companies – and potential partners.   

What has struck Clemente most is the real-world impact of the work he does.

 “It’s not only about five-year returns, which you do need to keep in mind and obtain, it’s the idea that we are providing catalytic capital – capital that can help the companies we invest in develop and create solutions that lead to a better world.”

Many of the investee companies are leaders in addressing global challenges, he says. “It is exciting to partner with businesses that work relentlessly and with passion to shape a better world for future generations.”

Playing the long game

In the decade since the opening of the London office in 2014, understanding of what Temasek does and can offer has grown.

“We’ve really developed our ‘brand’ across the region,” says Clemente. “When I first joined Temasek, not everyone in Europe fully understood our investment approach. Fast forward to today, the financial ecosystem and the companies we interact with have a good understanding of our vision and targets. They know we are a focused investor – we know what we want to invest in, and we take a patient approach in waiting for the right opportunities to become actionable.” 

While a financial mindset is “a strict requirement and necessity”, there are additional “layers” aligned to the purpose and vision Temasek has as an institution – and that Clemente has of the future.

“It adds a layer of complexity, but at the same time it makes the work more rewarding, and more meaningful.”