Temasek portfolio companies may divest its ‘dirty’ assets to provide clarity on net-zero plans

[DUBAI] Singapore’s state investor Temasek has long maintained that it will not divest from its carbon-intensive portfolio companies, instead choosing to work alongside them in their decarbonisation journey.

However, at times, divestment may be necessary if a company needs to send a clear signal on its future net-zero direction, said Steve Howard, vice-chairman of sustainability at Temasek, when asked about Sembcorp Industries’ sale of its coal power business in India.

“So the preferred strategy is to be a long-term partner and work to reduce emissions... Will we occasionally be involved in divesting assets or our portfolio companies? Yes, but it’s not our first choice to do it when we can see a viable way,” said Howard, who was speaking to The Business Times on the sidelines of the United Nations climate change conference in Dubai, United Arab Emirates, on Thursday (Nov 30).