Resilient & Forward Looking Portfolio
Our T2030 strategy serves as our compass in a complex world and guides us to our North Star, our Purpose — So Every Generation Prospers.
The four pillars of our T2030 strategy are anchored by our Purpose and underpinned by our three foundational enablers.
Resilient & Forward Looking Portfolio
Constructing a portfolio that can withstand exogenous shocks and market volatility while focusing on sustainable growth over the long term
We focus on the construction of a resilient and forward looking portfolio — one which is able to withstand exogeneous 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.
(Portfolio composition as at 31 March 2023)
1. Includes only key portfolio companies headquartered in Singapore.
Investment Engine: Delivering sustainable returns over the long term
Makes up 86% of our portfolio as at 31 March 2023, consisting of:
(as at 31 March)
(as at 31 March)
(as at 31 March 2023)
Partnership Engine: Scaling capital through partnerships
Makes up 10% of our portfolio as at 31 March 2023, consisting of:
Development Engine: Identifying and building future-centric capabilities
Makes up 4% of our portfolio as at 31 March 2023.
Sustainability at the Core
Embedding sustainability in all that we do — from our mandate to deliver sustainable value over the long term, to our strategy of how we operate as an institution, shape our portfolio, and engage our portfolio companies to build sustainable businesses
Temasek is committed to embedding sustainability at the core of everything we do, as we seek to deliver sustainable value over the long term for all stakeholders.
We believe that our long term success as an investor and an institution is contingent on the presence of thriving businesses and economies; cohesive societies and communities; and resilient people and planet. We therefore 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 an investor, we seek to build a resilient and forward looking portfolio that generates sustainable returns over the long run. As a shareholder, we seek to add value to our portfolio companies in their journey to build sustainable businesses. As an institution, we embed principles of sustainability, inclusivity, and good governance in our processes, and anchor ourselves with a strong set of values. As a steward, we also have a constitutional responsibility to safeguard and ensure the sustainability of Temasek’s reserves. We also contribute to building resilient and inclusive communities across generations.
We remain committed to reduce the net carbon emissions attributable to our portfolio to half the 2010 levels by 2030, as we aim for net zero emissions by 2050. To achieve this goal, we focus on three pathways:
Our role as an investor enables us to deploy capital purposefully to catalyse solutions and contribute towards the transition to a net zero carbon economy. Over the years, we have been actively investing in opportunities presented by the transition towards a low carbon future. Examples include existing investments in hard-to-abate sectors such as in energy and urban solutions provider Sembcorp Industries, which has been on a journey to transform its portfolio to provide sustainable solutions; as well as the formation of new enterprises such as O2 Power, a renewable energy platform in India jointly established with EQT Infrastructure that serves utility and corporate customers.
We have also integrated an Environmental, Social, and Governance (ESG) framework across our investment process from pre-investment due diligence to post-investment engagement. 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 team focuses on such opportunities in the areas of 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, and we are carbon neutral for the fourth year running.
We have set an internal carbon price for the firm to embed the cost of carbon in our investment and operating decisions. 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, with the aim to increase it to US$100 per tCO2e by 2030.
To reinforce commitment to our carbon emissions goals, we have a carbon charge against our portfolio performance. This reduces our incentive pool for distribution in years with positive Wealth Added (WA), and increases the clawback when WA and portfolio returns are negative. In addition, a portion of our long term incentives is aligned with our portfolio carbon emissions reduction targets. Vesting is subject to us achieving these targets, and each co-investment grant tranche will have a life cycle of up to 12 years.
Temasek Operating System (T-OS)
Building specialised capabilities in Artificial Intelligence (AI), Blockchain, Cybersecurity, Data & Digital, and Sustainable Solutions to bring value to our ecosystem and the marketplace
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:
Organisation, Talent & Capabilities
Focusing on our organisational and talent development to grow our people, capabilities, and teams for the future
We take an active approach to ensure our organisation evolves and has the right structure and capabilities for the future, as we build a forward looking institution.
We also develop a diverse team with multidisciplinary skill sets to take on more complex challenges. Our strategic workforce planning process allows us to identify and plan for new capabilities that we need via a multi-pronged approach — “buy, borrow, build, or bot”. Over the years, we have built and deepened our capabilities in areas such as digital technology, data science, AI, blockchain, cybersecurity, and sustainability.
We create a culture of learning agility that encourages our talent to constantly adapt and grow. Our talent and multi-rater feedback frameworks are core to our talent development and performance review processes. Our continual focus on succession planning culminates in an annual senior leadership discussion to identify and review our talent pipeline.
We believe that workforce development is an integral part of business transformation, and support Singapore’s model of tripartism that sees unions, employers, and the Government collaborating to ensure inclusive and sustainable economic growth. To this end, we established a Workforce Taskforce to work alongside partners in our ecosystem, including our portfolio companies, unions, and government agencies. We aim to develop a future-ready workforce by co-curating solutions in areas such as training and skills uplifting, workplace health and safety, and inclusivity in the 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.
We also promote and adopt the policy of fair employment for all on an equitable and non-discriminatory basis.
The four pillars in our T2030 strategy are underpinned by three foundational enablers, all of which are key to our success.
First, 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.
Second, 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.
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 Principles underpin why we do what we do, highlighting our unique strengths as a firm.