Keeping these assets on Temasek’s balance sheet may weigh against its sustainability commitments, but Pillay believes there are long-term benefits.
Each investor must consider its mandate and what it is supposed to deliver. In the case of investment company Temasek Holdings, the mandate of long-term sustainable returns must include environmental, social and governance (ESG) considerations, says Dilhan Pillay Sandrasegara, executive director and CEO of Temasek Holdings and Temasek International.
However, greening the business models of investee companies will take time, especially for businesses in hard-to-abate sectors like aviation, power generation and the built environment, he adds.
