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June 6, 2022

Temasek sets up climate-focused investment platform company

Temasek has set up a wholly-owned investment platform company, dubbed GenZero, in a bid to accelerate decarbonisation worldwide.

The Singapore-based investment firm said that it will commit an initial amount of S$5bn (US$3.64bn) to launch the platform.

GenZero will focus on catalysing the decarbonisation solutions by deploying long-term and flexible capital, the firm said in a statement.

The unit will invest in opportunities ranging from early-stage companies and solutions to more mature ones that are seeking to expand.

GenZero’s investments will primarily focus on technology-based solutions that generate a deep decarbonisation impact through climate-driven technologies.

Its investment focus area also includes nature-based solutions that help protect and restore our natural ecosystems as well as carbon ecosystem enablers that support the development of an effective, efficient, and credible carbon ecosystem.

These three focus areas are expected to present a holistic and integrated approach to addressing the emissions gap, according to the company.

Temasek International chief sustainability officer Steve Howard said: “Achieving net zero globally will require deployment of around US$5trn annually by 2030, to rapidly adopt and commercialise sustainable energy solutions. Its flexible approach will enable it to catalyse near- and long-term solutions to support ongoing efforts to achieve net zero globally.

GenZero will not only support Temasek’s efforts as we strive towards halving our portfolio’s net emissions by 2030 and working towards a net zero portfolio by 2050, but also those of the wider ecosystem.”

GenZero will be led by CEO-designate Frederick Teo, who is presently managing director of Sustainable Solutions at Temasek International.  

Teo will assume his new role at GenZero on 1 July 2022 and manage a team specialised in the investment and sustainability space.

Teo said: “GenZero is driven by the common purpose to decarbonise for future generations. Recognising the importance of immediate action, we will focus on investment opportunities that can deliver positive climate impact by 2030 while ensuring sustainable financial returns.

“Besides deploying capital, we will work with our investee companies to address operational challenges and accelerate the deployment of their solutions to achieve our shared net zero target.”

In 2020, Temasek established an asset management group to serve as the operational holding company for four asset management businesses that are wholly-owned by or affiliated with the firm.

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