THE HEAT IS ON
Presented by
How Reversing Climate Change Can Define Our Generation
Ecosperity Week spotlights the climate emergency, exploring how Temasek is catalysing its climate-positive investments and partnerships to accelerate progress towards a net zero world.
WHAT
WHY
HOW
Climate change is Earth’s greatest existential challenge.
By acting with collective urgency, this generation can create a defining moment in history
Temasek sees the decarbonisation challenge as a powerful opportunity to plot a path towards stability and prosperity – and is placing catalytic investment to address urgent global challenges and reduce emissions
With a three-pronged carbon abatement approach, Temasek is engaging some of the
best players here and abroad to scale proven solutions and technologies, and enable a sustainable future
Our planet sits at the dawn of a critical decade. According to a recent scientific assessment from the UN’s Intergovernmental Panel on
Climate Change , unless we collectively adopt drastic efforts to eliminate greenhouse gas emissions, the planet will warm by more than
1.5° Celsius in the next two decades . We must respond with urgency
to this global climate emergency.
With unequivocal scientific consensus, the IPCC has proclaimed “a code red for humanity” as the Earth’s global surface temperature has warmed 1.09° Celsius since 1850, with by far the greatest contributor being greenhouse gases associated with human activity. An increase over 1.5° Celsius could spell even more severe climate-related risks to natural systems, health, livelihoods and food security.
HEAT SPIKE
Humanity has heated the climate to at least a 100,000-year high. All of the warming is caused by human influence.
Investing in sustainable solutions
For some, such a situation might feel overwhelming and insurmountable.
Yet, it is unrivalled as a call for collective action. By marshalling as one united force, we have a chance to steer our planet towards a more secure and resilient direction. “There are many possible futures,” acknowledges Steve Howard, Temasek's Chief Sustainability Officer. “We could have runaway climate change – or we could be the generation that ends global warming.”
In order to address the scale of the climate crisis at pace and make a serious dent in our collective carbon footprint, industries must step up to
the plate and make immediate bold changes in how we build, travel and
do business. One key to this will be accelerating the pace of innovation in sustainable technologies and solutions, to help pave the way towards a
net zero world.
Temasek actively seeks to fund opportunities that have the potential to address such key global challenges. It sees its capital as catalytic.
Financial
Capital
Human
Capital
Natural
Capital
Social
Capital
Stimulating innovation and growth
Uplifting capabilities and enhancing potential
Fostering sustainable solutions for a more liveable world
Helping to transform lives and enable resilience for a more inclusive world
Temasek is committed to achieving net zero carbon emissions by
2050
Three-pronged approach
While examples of this commitment are numerous, Temasek’s three-pronged carbon abatement approach points to how it works. The first pillar to this approach is to invest in climate-aligned businesses with a track record of superior carbon intensity and efficiency.
The Earth’s global surface temperature
has warmed
1.09° Celsius since 1850.
We could be the generation that ends global warming.
Social and Environment Impact
One example is Eavor Technologies, a Canada-based geothermal firm developing proprietary technology to harvest geothermal energy .
Its Eavor-Loop is a proprietary closed-loop system that harvests the Earth's heat, to generate clean and scalable energy on demand.
Also pushing the climate agenda forward is a partnership between EQT Infrastructure and Temasek to establish O2 Power – a renewable energy platform that will target over four gigawatts of installed capacity across solar and wind. O2 Power has received total commitments of USD 500 million in equity from EQT and Temasek.
In April this year (2021), Temasek combined forces with U.S.-based investment company BlackRock to launch Decarbonization Partners,
a series of late stage venture capital and early growth private equity investment funds focused on accelerating decarbonisation solutions. The funds have a sharp focus on catalysing early-stage growth companies that develop proven next-generation decarbonisation technologies – including emerging fuel sources, grid solutions, battery storage, and electric and autonomous vehicle technologies.
The second pillar of Temasek’s decarbonisation strategy involves enabling carbon negative solutions to reduce emissions. An example of this is Climate Impact X (CIX), a global exchange and marketplace for high-quality carbon credits, jointly established by DBS Bank, Singapore Exchange, Standard Chartered and Temasek. Leveraging on satellite monitoring, machine learning and blockchain technology to enhance the transparency, integrity and quality of carbon credits, CIX provides a near term solution for companies to neutralise unavoidable emissions and set them on the path to net zero.
Another example is Canada-based company Svante, which in 2021 raised US$75 million in new financing, led by Temasek, for its efforts to address hard-to-abate emissions from industrial operations such as cement manufacturing, blue hydrogen production and natural gas boilers . Svante’s breakthrough solid sorbent technology allows large-scale capture of CO directly from industrial sources – at half the cost of traditional engineered solutions .
The third pillar involves Temasek encouraging its portfolio companies and businesses to accelerate their decarbonisation efforts. This is borne through the likes of Ecosperity , one of Temasek’s key platforms for engagement and advocacy, twinning ecology with prosperity through an annual global forum. Held since 2014, Ecosperity hosts international business leaders, policymakers, investors, entrepreneurs and academics, to exchange views and share best practices on sustainable developments – as well as driving action towards achieving a clean and green future.
No less bold in its scope is the Temasek Portfolio Companies Sustainability Council, formed in 2020 to share knowledge and tools for carbon measurement, physical climate risk assessments and climate-related disclosures – and to help Temasek advance its dialogue with portfolio companies on their climate strategies and emission reduction plans . Instead of simply divesting from heavy carbon emitting companies in its portfolio, Temasek’s approach is to work with these companies on their individual transition pathways.
”Target setting needs to be in absolute terms, to create real clarity for the workforce on the direction that the firm is taking”
Dr Steve Howard
Chief Sustainability Officer,
Temasek
Bold targets across the ecosystem
Even as we consider the irreversible changes already brought about by climate change, we must take bold and immediate action to achieve the goals of the Paris Agreement.
“Target setting needs to be in absolute terms, to create real clarity for the workforce on the direction that the firm is taking,” says Howard. “This is why, at Temasek, we often iterate that we want to halve our 2010 portfolio emissions level by 2030 – and strive to be net zero by 2050. These are our clear destinations, and we need to work alongside our portfolio companies and businesses to reach those goals.”
Climate awareness will affect every decision, from policies to investments, and the way Temasek chooses to build its future. To effectively deal with carbon emissions, Temasek has also started to introduce a notional internal carbon price into its investment decision making processes.
“Our carbon pricing of US$42 per tCO e is an initial starting point for our investment decisions as we align them towards our sustainability goals. We also expect to increase the cost through to 2030, in tandem with our ambition to deliver on our carbon abatement targets,” Howard notes. “This helps to guide decision making in line with broader climate targets and model the likely future impact of carbon pricing on the investments we make. And it has embedded carbon measurement as part of every investment decision.”
Halve our 2010 carbon emissions by 2030
Net zero by 2050
Innovative solutions to the fore
A collective effort to advance new ways of doing business is required to enable a sustainable future. Public and private sectors must work together to accelerate change and progress by adopting innovative climate strategies – through implementing more sustainable policies, and investing in sustainable solutions.
For many, the challenges of climate change may feel alarming, but they need only be so if we stand still. Alternatively, the quest to find lasting solutions to today’s challenges could help us to define our future – and build world-beating businesses in the process.
“The green industrial revolution is a once-in-a-lifetime business opportunity,” affirms Howard. “We can be the generation that reverses the decline in nature. But it requires our best effort, and it’s about every investment decision, every business decision, every policy decision – and the way we choose to build our future.”
More Articles in Our Series
learn more
Driving Change in a Digital World
ARTICLE
READ MORE
Coming soon
Solving Global Food Production Challenges
ARTICLE
READ MORE
Coming soon
Innovating the Future of Consumption
ARTICLE
READ MORE
Coming soon
Meeting Society's Needs Amid Longer Lifespans
ARTICLE
READ MORE
Coming soon
1
2
3
6
5
4
7
8
9
10
11
1. https://www.ipcc.ch/
2. https://www.bloomberg.com/news/features/2021-08-09/ipcc-report-human-caused-climate-change-unequivocal
3. https://www.ipcc.ch/site/assets/uploads/sites/2/2019/06/SR15_Headline-statements.pdf
4. https://www.temasekreview.com.sg/our-stories/the-race-against-the-clock-to-net-zero.html
5. https://eqtgroup.com/news/2020/eqt-and-temasek-launch-o2-power-a-renewable-energy-platform-in-india
6. https://eqtgroup.com/news/2020/eqt-and-temasek-launch-o2-power-a-renewable-energy-platform-in-india
7. https://svanteinc.com/svante-raises-75-million-to-decarbonize-cement-and-hydrogen-production/
8. https://svanteinc.com/svante-raises-75-million-to-decarbonize-cement-and-hydrogen-production/
9. https://www.ecosperity.sg/
10. https://www.temasek.com.sg/en/news-and-views/news-room/news/2021/temasek-review-2021-bounce-forward
11. https://www.temasekreview.com.sg/our-stories/the-race-against-the-clock-to-net-zero.html
Footnotes
More Articles in Our Series
More Articles in Our Series
More Articles in Our Series
More Articles in Our Series
More Articles in Our Series
One example is Eavor Technologies,
a Canada-based geothermal firm developing proprietary technology to harvest geothermal energy .
Its Eavor-Loop is a proprietary
closed-loop system that harvests the Earth's heat, to generate clean and scalable energy on demand.
Also pushing the climate agenda forward is a partnership between EQT Infrastructure and Temasek to establish O2 Power – a renewable energy platform that will target over four gigawatts of installed capacity across solar and wind. O2 Power has received total commitments of USD 500 million in equity from EQT and Temasek.
The second pillar of Temasek’s decarbonisation strategy involves enabling carbon negative solutions to reduce emissions. An example of this is Climate Impact X (CIX), a global exchange and marketplace for high-quality carbon credits, jointly established by DBS Bank, Singapore Exchange, Standard Chartered and Temasek. Leveraging on satellite monitoring, machine learning and blockchain technology to enhance the transparency, integrity and quality of carbon credits, CIX provides a near term solution for companies to neutralise unavoidable emissions and set them on the path to net zero.
The third pillar involves Temasek encouraging its portfolio companies and businesses to accelerate their decarbonisation efforts. This is borne through the likes of Ecosperity , one of Temasek’s key platforms for engagement and advocacy, twinning ecology with prosperity through an annual global forum. Held since 2014, Ecosperity hosts international business leaders, policymakers, investors, entrepreneurs and academics, to exchange views and share best practices on sustainable developments – as well as driving action towards achieving a clean and green future.
Can Define Our Generation
How Reversing Climate Change
*PLACEHOLDER TO INSERT HEAT SPIKE INFOGRAPHICS
11
More Articles
in Our Series
More Articles
in Our Series
More Articles
in Our Series
More Articles
in Our Series
2
3
1
INVESTING IN
CLIMATE-ALIGNED
BUSINESSES
1
3
2
ENABLING CARBON
NEGATIVE
SOLUTIONS
1
2
3
ENCOURAGING
DECARBONISATION
EFFORTS IN
BUSINESSES
1. IPCC
2. Bloomberg
3. IPCC
4. Temasek
5. EQT Group
6. EQT Group
7. Svante Inc
8. Svante Inc
9. Ecosperity
10. Temasek
11. Temasek
In April this year (2021), Temasek combined forces with U.S.-based investment company BlackRock to launch Decarbonization Partners,
a series of late stage venture capital and early growth private equity investment funds focused on accelerating decarbonisation solutions. The funds have a sharp focus on catalysing early-stage growth companies that develop proven next-generation decarbonisation technologies – including emerging fuel sources, grid solutions, battery storage, and electric and autonomous vehicle technologies.
2
2
2
2