Temasek pressing ahead with its green targets; sustainable investment portfolio grows

Temasek said it is pressing ahead with its sustainable living investments and green targets, despite the uncertain geopolitical situation and some pullback in other countries.

- Sue-Ann Tan

Temasek's chief sustainability officer Park Kyung-ah said at a media briefing on the firm's 2025 sustainability report out on July 9: "We are staying the course in terms of addressing tomorrow's needs and, certainly, given the urgency of climate change that is already upon us, that is a key need that we have to address."

Temasek has an aim of reaching net zero in its portfolio emissions by 2050.

"We remain committed to our target... and we are not taking the foot off our pedal," she added.

This commitment comes as Temasek grew its portfolio value of sustainable living trend-aligned investments to $46 billion in the 2025 financial year ended March 31, up $2 billion compared with the previous year.

Sustainable living trend-aligned investments include companies with products and services that seek to fulfil environmental and social objectives, as well as those that will benefit from sustainability opportunities.

Temasek's chief investment officer Rohit Sipahimalani said: "We have stepped up our investments in the sustainable living trend in the past year, compared with the previous year."

He added that the pullback in other parts of the world should not change Temasek's approach towards investing in this space.

The US withdrew from the Paris Agreement earlier in 2025, when US President Donald Trump took office.

Major banks and asset managers such as JP Morgan, Goldman Sachs and Morgan Stanley have pulled out of net-zero initiatives such as the Net-Zero Banking Alliance, which brings together banks that want to align their lending and investing activities with net-zero emission targets.