The natural world is in crisis and the strain is showing: extreme weather and species population collapse are just two symptoms. But Temasek International, a global investment company with a portfolio valued at $381 billion, believes it doesn’t have to be this way. 

Steve Howard, Chief Sustainability Officer at Temasek, believes that there are opportunities for growing businesses to make the world better for people and planet: 

“There are still many people around the world who are underserved, who don’t have access to energy systems, financial services, healthcare. At Temasek we set out our approach to really create inclusive prosperity. We’re able to back the businesses that have special business models, products and services focused on those underserved communities. By mid-century or before we’ll be a total impact investor, where we’ll be generating through the businesses we invest in a positive impact for people, for society, for the environment.”

To achieve this, the company is taking a careful look at pivoting companies and businesses across its diverse portfolio to a more sustainable model, as Hoon Ling Min, Vice President Climate Change Strategy at Temasek International explains:

“At Temasek International, we embed sustainability at the core of all of our investments. One of the first things we look at is the ESG (Environment, Social and Governance) profile of our potential partners. In other words, how environmentally friendly and socially responsible these companies are. We first identify material ESG issues and develop an improvement action plan. Post-investment, we engage with the portfolio companies on a regular basis to monitor the progress around the ESG, management and disclosures. 

Making such big changes at scale and at speed requires the cooperation of other investors, businesses, governments and civil society. “That way,” says Steve Howard, “we can create the future faster.”

The strategy is transforming the world. Laurent Stevenart, General Manager, Singapore and UAE at Impossible Foods describes the partnership with Temasek as “incredible supporters and partners”: 

“Our mission at Impossible Foods is to turn back the clock on climate change, restore biodiversity, and reduce the impact of our food systems on the environment. We do so by creating incredible meat, which is actually made from plants but tastes, feels, and cooks exactly like its animal counterpart – without a detrimental impact on the environment. Temasek drive awareness to our brand and allow us in the meantime, to educate our consumers in Singapore and around the world.”

From the food we eat to the energy we produce, climate change is a problem on a massive scale. Claude Letourneau, President and CEO at Svante Inc, a carbon capture specialist, outlines the size of the problem:

“We have to build about 10 gigaton of annual CO2 capture by the mid century. Achieving only 20 percent of it in the next two decades means that we need to commission two world class plants every week for the next 20 years. We need to scale existing and new technology fast and in partnership with like-minded industry partners. As tier one ESG investors, Temasek brings a lot of credibility to Svante.”

Further investments by Temasek include a significant capital commitment alongside Brookfield’s capital in the renewable energy company’s transition strategy. Temasek is one of the founding investment partners in the global transition fund, as Connor Teskey, CEO at Brookfield Renewables explains:

“The Brookfield Global Transition Fund is one of Brookfield’s flagship funds and is our primary vehicle for investing in and facilitating the transition to a net zero carbon economy. The strategy will have a dual objective of delivering attractive risk-adjusted financial returns and also delivering a positive decarbonization impact. Temasek participation brings both scale and perspective, enhancing the strategies ability to pursue the largest and most attractive decarbonization investment opportunities around the world.” 

With just these three examples, Temasek offers a glimpse of a better future. But Chief Sustainability Officer Steve Howard invites us to dream even bigger:

“In 2045, there will be no pollution. There will be no waste. We’ll have healthy sustainable food systems. We’ll have no hunger. We’ll have tackled poverty. We’ll have breathtaking mobility as a service that’s clean with no tail pipes. We’ll have buildings that produce more energy than they consume. We’ll have a vibrant regenerative economy that’s giving back to nature. As we rewild parts of the world and actually see a nature recovery, we can be stewards of the world. We’ll be part of a movement that will have reversed the decline in nature and will create an inclusive economy for many, many more millions of people.”