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Parliamentary Replies

Carbon Emission Targets for Companies Owned by Government Investment Entities

03 Aug 2021

Parliamentary Question by Mr Chua Kheng Wee Louis:

To ask the Minister for Finance whether the Government is involved in, prescribes or audits, any net carbon emissions target set for 2030 for companies owned by its investment entities and, if so, what are these as broken down into total portfolio emissions versus negative emissions targets.

Parliamentary Reply by Minister for Finance, Mr Lawrence Wong:

The Government does not prescribe the individual investment actions of our investment entities, which make commercial decisions independent of the Government. GIC and Temasek are already holistically integrating sustainability considerations in their investment processes so as to protect and enhance the long-term value of their portfolios.

Indeed, climate change is one of the most crucial challenges of this era. As long-term investors, both GIC and Temasek see sustainability as core to how they invest, what companies they invest in, and how they set their investment strategies. Strong sustainability practices are integral to delivering sustainable investment returns over the long term. Conversely, companies with poor sustainability practices carry increased business, reputational, as well as environmental, social, and governance risks.