Temasek Review 2021

Independent Practitioner’s Report

Independent Practitioner’s Limited Assurance Report on the Selected Portfolio Emissions Metrics of Temasek Holdings (Private) Limited (“Temasek”) as included in Temasek Review 2021

We have undertaken a limited assurance engagement on the Selected Portfolio Emissions Metrics contained in the Temasek Review 2021 (the “TR 2021”) for the financial years ended 31 March 2021, 31 March 2020 and 31 March 2011.

Selected Portfolio Emissions Metrics

Metric 2021 Result 2020 Result 2011 Result
Total Portfolio Emissions
(in tCO2e)
30 million 30 million 22 million
Portfolio Carbon Intensity
(in tCO2e/S$M)
103 130 131

The basis of preparation for the above Selected Portfolio Emissions Metrics can be found here (the “Criteria”).

Our assurance was with respect to the financial years ended 31 March 2021, 31 March 2020 and 31 March 2011 information only and we have not performed any procedures with respect to other periods or elements included in the TR 2021 and, therefore, do not express any conclusion thereon.

Management’s Responsibility

Management is responsible for establishing suitable criteria for preparing the Portfolio Emissions Metrics and the preparation of the Portfolio Emissions Metrics in accordance with the Criteria.

Management is also responsible for designing, implementing and maintaining internal control over information relevant to the preparation of the Portfolio Emissions Metrics that is free from material misstatement, whether due to fraud or error.

The Selected Portfolio Emissions Metrics has been prepared to assist management to report the Selected Portfolio Emissions Metrics to Temasek’s Board of Directors and for inclusion in the TR 2021 using the Criteria designed for this purpose. As a result, the Selected Portfolio Emissions Metrics may not be suitable for another purpose.

Practitioner’s Independence and Quality Control

We have complied with the independence and other ethical requirements of the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

Our firm applies Singapore Standard on Quality Control 1 and, accordingly, maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Practitioner’s Responsibility

Our responsibility is to express a limited assurance conclusion on the Selected Portfolio Emissions Metrics based on our work. We performed our limited assurance engagement in accordance with Singapore Standard on Assurance Engagements 3000 (Revised) – Assurance Engagements other than Audits or Reviews of Historical Financial Information and, in respect of greenhouse gas emissions included in the Selected Portfolio Emissions Metrics, Singapore Standard on Assurance Engagements 3410 – Assurance Engagements on Greenhouse Gas Statements (collectively the “Standards”). These Standards require that we plan and perform our work to form the conclusion about whether the Selected Portfolio Emissions Metrics is free from material misstatement, whether due to fraud or error. The extent of our procedures depends on our professional judgement and our assessment of the engagement risk.

The procedures we performed included inquiries, inspection of documents, analytical procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or reconciling with underlying records. Given the circumstances of the engagement, in performing the procedures listed above we:

  • Evaluated the suitability of the Criteria as a basis to prepare the Selected Portfolio Emissions Metrics;
  • Through inquiries, obtained an understanding of Temasek’s control environment and the information systems relevant to the preparation of Selected Portfolio Emissions Metrics. However, we did not evaluate the design of control activities, obtain evidence about their implementation or test their operating effectiveness;
  • Evaluated whether Temasek’s methods for developing estimates are appropriate and had been consistently applied. However, our procedures did not include testing the data on which the estimates are based or separately developing our own estimates against which to evaluate Temasek’s estimates;
  • For a limited sample of assets, reconciled the emissions data back to the underlying records. However, our procedures did not include the corroboration of the underlying greenhouse gas emissions and financial data; and
  • Considered the presentation and disclosure of the Selected Portfolio Emissions Metrics.

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Inherent Limitations

The absence of a commonly used generally accepted reporting framework or a significant body of established practice on which to draw to evaluate and measure subject matter allows for different, but acceptable, measurement techniques that can affect comparability between entities and over time. As there are currently no legislative requirements or regulation prescribing the preparation, disclosure and verification of the Temasek’s portfolio emissions, the Selected Portfolio Emissions Metrics needs to be read and understood together with the Criteria.

The quantification of the greenhouse gas emissions data underlying the Selected Portfolio Emissions Metrics is subject to inherent uncertainty because of incomplete scientific knowledge used to determine emissions factors and the values needed to combine emissions of different gases, and the estimation uncertainty from the measurement and calculation processes used to quantify emissions within the bounds of existing scientific knowledge. This uncertainty is further increased in preparing the Selected Portfolio Emissions Metrics for the financial year ended 31 March 2011 as such scientific knowledge as well as measurement and calculation processes during the period then ended were less developed than current levels and have evolved with the passage of time. This can affect the ability to draw meaningful comparison of Temasek’s portfolio emissions over time.

Conclusion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Selected Portfolio Emissions Metrics for the financial years ended 31 March 2021, 31 March 2020 and 31 March 2011 is not prepared, in all material respects, in accordance with the Criteria.

Restriction on Distribution and Use

This report, including our conclusion, has been prepared solely for Temasek in accordance with the agreement between us. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Temasek for our work or this report.




Yours faithfully

PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Public Accountants and Chartered Accountants
Singapore

16 June 2021