Speaking about the company’s sustainability goals, Temasek Chief Executive Dilhan Pillay Sandrasegara explained that the global transition to cleaner energy is becoming increasingly difficult and unpredictable. He said the world is facing geopolitical tensions, slower international cooperation, rising energy demands and different national priorities, making climate progress uneven across countries.

Dilhan noted that when Temasek first announced its climate ambitions, there was stronger global momentum behind the transition to net-zero emissions. However, the current environment has changed significantly, with some governments focusing more on energy security, inflation and economic growth instead of aggressive climate policies.

He said the path toward sustainability “will be far more uneven, contested and non-linear” than previously expected. According to him, this means companies and investors must become more flexible and realistic while continuing to support long-term climate action.

Temasek had earlier pledged to reduce the net carbon emissions of its portfolio to half of 2010 levels by 2030 and eventually reach net zero emissions by 2050. But the company now believes certain sectors, especially aviation, heavy industry and energy, may take longer to transition because cleaner technologies are still expensive or not yet fully developed.

Despite the challenges, Temasek insisted it remains committed to sustainable investing. The company says it will continue funding businesses involved in renewable energy, green technology, electric mobility and carbon reduction solutions.

Dilhan also warned that climate investment should not depend only on ideal political conditions. He stressed that businesses must continue innovating and investing in sustainable solutions even during periods of uncertainty.

Analysts say many global investors are facing similar problems as climate targets become harder to achieve amid slower economic growth, supply chain disruptions and geopolitical conflicts. Some major companies around the world have already delayed or revised parts of their net-zero plans in recent years.

Temasek remains one of Asia’s most influential investment firms, managing a large portfolio across sectors including finance, technology, transportation, healthcare and energy. The company says sustainability will continue to play a major role in its long-term investment strategy even if timelines become more difficult to meet.