Temasek defends green goals as it backs Singapore Airlines, Sembcorp Marine

It might seem contradictory to invest in carbon-emitting polluters while pledging to be an eco-trailblazer, but that's exactly what Singapore's investment company, Temasek, is attempting to do. As one of the world's largest institutional investors, its US$282b portfolio is replete with businesses that contribute to global warming - from Singapore Airlines to Sembcorp Marine, a supplier of offshore rigs. While peers like Norway's sovereign wealth fund have used hard targets and the sale of assets to improve their green credentials, Temasek is taking a different path. "We never said we will not invest in an emitter of carbon - as long as this emitter is on a journey, a path and we can be helpful in terms of how we can shift them," said Nagi Hamiyeh, Temasek International's joint head of investments. Temasek's approach is emblematic of the delicate dance many global investors face, especially those laden with legacy assets that once belonged to the state. Temasek has pledged to halve the net carbon emissions of its portfolio compared with 2010 levels by 2030, and reach net-zero by 2050. It's ramped up the amount of money it allocates to impact investment and environmental, social and governance funds. The firm has pumped billions of dollars into Singapore Airlines, a major global carrier. Hamiyeh said that unlike peers, the airline has not cancelled new aircraft purchases, allowing it to upgrade to models that emit less carbon. The carrier has pledged to hit net zero by 2050.<br/>