Learn 3 articles and stand to win rewards
Spin the wheel now
In a time of doubt and cynicism, notably on international local weather change efforts, localisation specialist Emma Wong’s steadfast idealism is inspiring.
Like lots of her friends, Ms Wong, 25, refuses to buckle below the relentless drumbeat of local weather doom, holding quick to the idea that it isn’t too late to repair our warming planet. She takes small actions in her each day life — like introducing extra plant-based protein into her eating regimen — to help the worldwide environmental motion in her personal approach.
Her ardour for the setting has even rubbed off on her household, inspiring them to actively recycle. Ms Wong, who lives along with her dad and mom and a youthful sister in a condominium, shares: “At dwelling, we’ve sorting bins in our kitchen, and it’s attention-grabbing to see how we’ve all learnt to take aside packaging and type them appropriately.”
But she is grounded by the information that the actions of people like her are merely not sufficient. Extra must be performed urgently.
“I feel it’s necessary for these with sturdy monetary affect to face behind firms which can be making an attempt to assist clear up the world’s sustainability issues,” says Ms Wong.
“The floods in Europe and Asia, the damaging typhoons, and right here, extra extraordinarily scorching days and heavy downpours with flash floods — these are actual reminders of local weather change. We are able to’t afford to disregard the indicators anymore.”
The latest surge within the variety of firms setting local weather targets and committing to safe the way forward for our planet means that the non-public sector is taking discover, as customers like Ms Wong more and more anticipate them to contribute in the direction of local weather motion.
In August, the United Nations’ (UN) Intergovernmental Panel on Local weather Change (IPCC) launched its starkest warning but about local weather change.
UN secretary-general António Guterres referred to as it a “code crimson for humanity”, urging governments, companies and people to work collectively to restrict international common warming to 1.5 deg C above pre-industrial ranges.
To take action, the world might want to attain net-zero emissions — when the overall quantity of greenhouse gases produced by people equals the quantity eliminated.
Consultants, nonetheless, warn that governments and corporates should have a concrete plan to attain these targets.
One firm that has developed a street map to assist it form a greater, extra sustainable and habitable future is funding firm Temasek. With a web portfolio worth of S$381 billion as of 31 March 2021 and an lively funding pipeline, Temasek is in a major place to be a catalyst for significant change.
“We should discover higher methods to tell, educate, persuade, and alter mindsets so that individuals perceive we’re working out of time,” mentioned Temasek’s Chairman Lim Boon Heng, talking on the Ecosperity Week sustainability convention in September.
However how can a state funding firm make a distinction to your real-world lives, your future, your livelihood?
The reply lies within the 4 developments that information its funding actions: Digitisation, Sustainable Dwelling, Way forward for Consumption and Longer Lifespans. These developments are interconnected and minimize throughout sectors with the identical vacation spot in thoughts — to construct a resilient world for future generations.
Take Temasek’s funding in micro-irrigation firm Rivulis for instance. Its water-saving applied sciences empower farmers to handle this finite useful resource extra successfully — a digital answer that allows sustainability.
So why is Temasek doing this? “We purpose to ship a extra sustainable portfolio, one which might ship past this decade, and one which leans ahead for a greater and extra habitable world, for generations to come back,” explains Mr Chia Music Hwee, deputy CEO of Temasek.
The technique is purposeful: Investing at the moment, with tomorrow in thoughts.
For Ms Wong, a greater tomorrow is one the place persons are extra acutely aware of how they reside and extra thoughtful of their influence on the planet. “We should take care of what we’ve been given for many who come after us to get pleasure from.”
Temasek shares an analogous imaginative and prescient of shaping a habitable world for this and future generations.
Apart from the 4 structural developments and its danger administration framework, Temasek additionally incorporates environmental, social and governance (ESG) issues in its funding processes.
That is essential, as Temasek believes that “producing sustainable returns over the long run is determined by steady, well-functioning and well-governed social, environmental and financial programs”.
One latest change to its ESG framework is its elevated concentrate on carbon emissions.
The corporate has set an preliminary inner carbon worth of US$42 (S$52) per tonne of carbon dioxide equal to information its funding analyses.
Temasek says it can refine its carbon pricing methods within the coming years, doubtless with the carbon value rising.
The corporate is working in the direction of two local weather objectives: To scale back the online carbon emissions of its portfolio to half the 2010 ranges by 2030, and obtain net-zero carbon emissions by 2050.
How did Temasek determine on these 4 structural developments? How do you personally relate to them?
We actively form our portfolio round how we see the world in future years: A world that should develop into extra sustainable, and may develop into so, if we assist emitters to alter their enterprise fashions and spend money on options to rework.
The modifications, and alternatives, from these 4 developments resonate strongly with me as a result of I see these as fairly secular.
They may proceed to drive social and financial progress by way of cycles and occasions, due to the elemental modifications which can be occurring the world over: Inhabitants development, revenue distribution, technological innovation and addressing local weather change are key drivers of those developments.
What’s the development potential of those developments, and the way do you see them converging?
These developments are basically altering the best way we reside, work and in lots of instances now, co-exist between the 2.
Digitisation and Sustainable Dwelling are cross-sectoral developments which have a pervasive influence throughout many sectors, in addition to on the enterprise fashions of rising and established companies.
In the meantime, the 2 different developments, Way forward for Consumption and Longer Lifespans, replicate structural shifts in consumption patterns and rising wants of longevity arising from our inhabitants development and longer anticipated lifespans.
I’m particularly excited to see how the developments interaction with one another in our investments, as we transfer in the direction of a post-pandemic world.
Apart from these 4 developments, what else is Temasek specializing in?
Sustainability, which is on the core of every thing we do at Temasek.
As an organization, we’ve delivered carbon neutrality for the previous two years, and have continued to take care of this standing this yr. We’re additionally dedicated to decreasing the online carbon emissions attributable to our portfolio to half the 2010 ranges by 2030, on a path to attain net-zero carbon emissions by 2050.
We’ve got developed a three-pronged strategy in the direction of constructing a sustainable future: investing in climate-aligned alternatives, enabling carbon destructive options, and inspiring decarbonisation efforts in companies.
Examples embrace numerous partnerships we kind to catalyse and multiply our efforts on our journey to decarbonisation, similar to our three way partnership with DBS Financial institution, Normal Chartered and the Singapore Trade (SGX) to ascertain Local weather Impression X, a world change and market for prime quality carbon credit.
Can Singapore firms profit from these 4 developments?
Sure, however the advantages would require work on their half to construct their very own enterprise fashions that align to the related future developments.
As an example, constructing a extra sustainable enterprise, or creating services that assist meet the wants of an ageing inhabitants.
These will drive advantages just like these we’re in search of to unlock by investing round these developments.
What motivates Temasek to take a position at the moment, with tomorrow in thoughts?
We do issues at the moment, with tomorrow in thoughts, as a result of we wish to stay related and alive to future challenges past our personal era.
This implies we’re very aware about creating flexibility and choices for our successors to thrive, whilst we ship at the moment.
We’re extra than simply an investor; we’re a supplier of catalytic capital.
We catalyse a sustainable future, for future generations, by investing utilizing 4 sorts of capital: Monetary capital to stimulate improvements and spur sustainable development; human capital, to construct individuals, capabilities, and human resilience past the Workforce 4.0 objectives; social capital to rework lives for a extra inclusive and resilient society; and pure capital for a extra habitable world.