It might seem contradictory to invest in carbon-emitting polluters while pledging to be an eco-trailblazer, but that’s exactly what Singapore state investor Temasek Holdings, which owns shares in two of the world’s largest rig builders, is attempting to do.
As one of the world’s largest institutional investors, its $282 billion portfolio is replete with businesses that contribute to global warming — from Singapore Airlines to Sembcorp Marine, a supplier of offshore rigs. While peers like Norway’s sovereign wealth fund have used hard targets and the sale of assets to improve their green credentials, Temasek is taking a different path.
“We never said we will not invest in an emitter of carbon – as long as this emitter is on a journey, a path and we can be helpful in terms of how we can shift them,” Nagi Hamiyeh, Temasek International’s joint head of investments, said in an interview.
Temasek’s approach is emblematic of the delicate dance many global investors face, especially those laden...read more...