Environment
We are committed to reducing the overall environmental impact arising from our operations.
LED lights improve lighting experience and energy efficiency in the office.
Beyond advancing sustainability through our investments and engagement with our portfolio companies, we recognise sustainability starts within Temasek as an institution. While our emission footprint is largely driven by our portfolio, as an investor, we recognise the important role we have in setting an example for our portfolio companies.
– Lim Ming Pey, Deputy Chief Corporate Officer, Temasek
Enabling a Sustainable Company
To maintain our carbon neutrality goal as a company, we take into account the carbon mitigation hierarchy. We prioritise avoidance, reduction, and substitution efforts before purchasing high-integrity carbon credits to compensate for our residual emissions.
Annually, we measure emissions as well as carbon intensity (emissions per employee) from our operations, and we aim to reduce emissions both in absolute and relative terms. Electricity consumption across our offices and business travel constitute a significant part of our emissions profile.
The reported emissions arising from our operations were 19,078 tCO2e1 for the year ended 31 March 2024, comprising 23 tCO2e in Scope 1 emissions, 501 tCO2e in Scope 2 emissions, and 18,554 tCO2e in Scope 3 emissions.
During the year, we saw a reduction in Scope 2 emissions from electricity use, largely due to our UK and India offices procuring electricity from renewable sources, and our Singapore office obtaining Renewable Energy Certificates.
Scope 3 emissions represent the majority of our total emissions, with business travel contributing 85% of that. We witnessed an increase in business travel emissions from 8,473 tCO2e for the year ended 31 March 2023 to 15,850 tCO2e for the year ended 31 March 2024. This increase was driven by the resumption of business travel in line with our business activities post-pandemic.
Despite the inherent challenges associated with Scope 3 emissions reporting, we remain committed to progressively expand our scope of coverage as we gain deeper understanding on the underlying datasets and estimation approaches.
Our emissions per employee decreased from 28.8 tCO2e per employee for the year ended 31 March 2020 to 19.0 tCO2e per employee for the year ended 31 March 2024 and thus remained below pre- pandemic levels. Notwithstanding this fact, we continue to drive various initiatives and programmes to further reduce operational emissions.
Five-year Environmental Footprint
(for year ended 31 March)
1 tCO2e refers to tonnes of carbon dioxide equivalent, a standard unit of measurement used in greenhouse gas emissions accounting and reporting.
Office Improvement Plan
To enhance and promote sustainability and efficiency in resource use, we have developed a five-year improvement plan for our corporate headquarters in Singapore, focusing on three areas: Energy, Water, and Waste Recycling.
As part of our five-year improvement plan, we will routinely monitor and evaluate energy and water consumption levels, as well as waste generation amounts to regulate surges or abnormalities in trend. If any anomalies are identified, the underlying cause will be determined and solutions that can increase energy, water, and waste recycling efficiency will be considered to address these issues. Examples include replacing existing non-LED lights with LED lights, implementing new highly water efficient systems, and adding E-waste recycling bins at strategic locations in the office.
Furthermore, we have committed to the Green Nation Pledge, an environmental sustainability initiative by the Ministry of Sustainability and the Environment of Singapore. To demonstrate our dedication and efforts in minimising our operational footprint, we adopt environmental best practices in our day-to-day operations, such as ceasing usage of single-use disposables and fixing air-con temperature to 25°C. Raising our air-con temperature to 25°C is expected to yield potential energy savings of 236,985 kWh/annum (equivalent to approximately 5% of energy consumption from our Singapore office for the year ended 31 March 2024).
In 2023, our Singapore office received the BCA Green Mark (Healthier Workplaces) Certificate (Platinum) from the Building and Construction Authority of Singapore. The award recognises companies that place their occupants’ health, well-being, and comfort at the forefront of office design and daily operations, in addition to ensuring environmental sustainability in the office. As part of our Green Mark commitment, we are adopting eco-friendly renovation works and improving air quality in the office.
Managing Business Travel
As part of our annual budget process, we have introduced a carbon charge for business travel, using our prevailing internal carbon price. This is one of our key levers to promote disciplined travel practices across teams. Staff are encouraged to plan their upcoming business trips in advance, optimise travel efficiency, as well as explore alternatives such as teleconferencing where possible. To further complement this, we have also developed an in-house flight emissions calculator to help staff gain a better understanding of how their flight paths and selections might impact emissions from business travel. The intent is to empower staff to make more conscious and sustainable decisions for their upcoming business travel.
Leveraging Carbon Credits to Address Unavoidable Residual Emissions
To address our residual institutional emissions, we purchase carbon credits through Climate Impact X (CIX), a global marketplace and exchange for high-quality carbon credits. Carbon credits acquired through CIX are verified against global standards such as Verra and Gold Standard. We prioritise carbon credits with higher ratings such as AA-rated by Sylvera, and more recent vintage.
In line with our global portfolio and sustainability strategy which covers climate, nature, and social, we support a range of carbon avoidance and removal projects which accrue varied nature and social co-benefits to a diverse range of geographical regions.
