The 2030 emissions target has effectively been missed — a fact publicly acknowledged by Temasek, Singapore’s sovereign wealth fund, which manages a portfolio worth hundreds of billions of dollars. Portfolio emissions in fiscal year 2025 totaled 21 million tonnes of CO₂, almost unchanged from the 22 million tonnes recorded in 2010. The original target was to reduce emissions to 11 million tonnes.
The paradox is that the carbon intensity of the portfolio has fallen by 52% since 2010. In other words, the companies in which Temasek invests now emit significantly less carbon per dollar of value. Yet in absolute terms, emissions have barely moved because the portfolio itself has grown substantially.
Five companies account for 80% of all portfolio emissions. Singapore Airlines, in which Temasek holds a 53% stake, is responsible for 43% of the portfolio’s emissions. Sembcorp, with its gas-fired power generation assets, contributes another 22%. Aviation and energy remain classic hard-to-abate sectors where viable alternatives are still limited. Sustainable aviation fuel (SAF) represents less than 1% of the global jet fuel market and costs between two and five times more than conventional fuel.
Temasek CEO Dilhan Pillay acknowledged that many of the assumptions underpinning decarbonization plans a decade ago have failed to materialize. At the time, there was widespread confidence that policy support, technological innovation, and capital allocation would converge to accelerate the transition.
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