SINGAPORE – Temasek is expanding its sustainable-living portfolio after its sustainability-related investments delivered strong long-term returns, with the investor doubling down on energy infrastructure as the Middle East conflict underscores the importance of energy security.

It also plans to increase its investments in artificial intelligence, including data centres that are driving higher electricity demand. While the rapid expansion of AI presents sustainability challenges because of its energy-intensive nature, Temasek sees opportunities to invest in the transition to more sustainable sources of power needed to support the growth of AI.

These come despite challenges in meeting its interim emissions targets.

While the concept of sustainability may be losing its appeal in some countries, the Singapore investment company is still aiming for its net-zero target by 2050 for its total portfolio emissions.

2030 target likely to be missed

Temasek also aims to halve its total portfolio emissions from its 2010 baseline by 2030 to about 11 million tCO2e, or tonnes of carbon dioxide equivalent, but said it is unlikely to hit this target.

In its 2026 sustainability report released on July 8, Temasek’s portfolio emissions stood at 21 million tCO2e, unchanged from its 2025 report.