At the Forefront of Temasek’s Green Revolution

It was intended as a "heads-up" on a developing trend, says Franziska Zimmermann.

It was January 2019, during the annual 'T-Huddle' - Temasek's leadership summit - that the Director of Sustainability & Climate Change Strategy made her presentation. "Investors were increasingly being held accountable for the carbon emissions associated with their investment portfolios," she says. "We wanted to brief senior management on this development."

Instead, her presentation sparked an unprecedented decision: to target a 50% reduction in the net carbon emissions attributable to Temasek's investment portfolio by 2030, compared to 2010 levels, and achieve net zero emissions by 2050.

"We didn't know yet how we would achieve this," Franziska recalls, "but​ we knew that this was where we needed to get to." ​

The decision marked a significant shift. "We weren't just committing to a target; we were sending a powerful signal, both internally and externally."

Putting the planet in focus

Sustainability has been a consistent theme in Franziska's life.

"I was born on Earth Day, so I guess you could say it's a calling," she laughs. Growing up in a small Swiss village, Franziska spent her days roaming the surrounding forests. "You learn what the environment means, how it relates to you, your community, and your survival." Her teenage years, marked by environmental catastrophes close to home - Chernobyl, chemical spills, and acid rain - underscored these critical lessons.

As a law student, she did her Master's thesis on environmental sustainability, and it remained a common thread in a career that spanned public and private-sector companies across Europe and Asia. "I felt it was something worth fighting for," she says.

Franziska joined Temasek's Strategic and Public Affairs team in 2015, coincidentally, the year the Paris Agreement - the global pact to curb climate change - was signed. Temasek was growing its presence in Europe and was looking for someone who could translate policy into business impact. Responsible investing was gaining traction at the time, she says. "I remember my then-boss, Gary Ang saying to me: 'Well Franziska, you're passionate about the environment, why don't you look at whether this is something we should be tracking more closely'."

"I did my research, spoke to people, and began sending updates to senior management and the organisation whenever there was a development in the sustainability and climate space," she recalls. She also took charge of Ecosperity, then a half-day conference that brought Temasek's portfolio companies together to advance the twinning of environmental sustainability with economic development.

The 2016 haze added impetus to Temasek's sustainability initiatives. As forests in Indonesia burned, Singapore grappled with the health and economic impacts, prompting intense media scrutiny on investors backing the companies responsible. While Temasek was not involved, the crisis led to a reassessment of potential risks within its investments. "We needed to consider the types of businesses we wanted to invest in and establish clear boundaries," says Franziska.

The realisation that sustainability needed to be a core consideration in evaluating investment opportunities led to the establishment of a project team to develop the frameworks to enable this.

"We co-developed the frameworks with the investment teams to strike the right balance between rigour and practicality​​​​​​," she recalls. By 2017, the frameworks had been integrated internally and communicated externally, solidifying sustainability as a permanent feature within the organisation.

Meanwhile, Temasek was advancing several other key initiatives. In 2017, it established a sustainability team to test and mainstream sustainability strategies, investments and solutions within the company. A dedicated decarbonisation-focused investment platform, incubated by the team, would later be spun off as GenZero, with a mandate to accelerate decarbonisation through strategic investments and partnerships. Over the years, Ecosperity had also expanded into a global sustainability conference, attracting prominent leaders from the public and non-governmental sectors, captains of industry, and the academic community. The week-long conference engages participants in collaborative efforts to tackle the ongoing climate crisis and promote sustainable growth across Asia.

"It was a sign of maturity, of Temasek recognising that its influence extended beyond investing money, and that its voice, perspective, and convening power mattered and could make a difference," says Franziska.

​​By this time​, ​Temasek's​ Sustainability ​ and​​Stewardship ​Group, ​first announced in 2016, had gained visibility and traction as a ​department in its own right. "This paved the way for us to bring together all these organic initiatives into a cohesive strategy."

Ultimately, it laid the groundwork for Franziska's presentation at the T-Huddle in January 2019, and Temasek's bold commitment.

Making good on green ambitions

Looking back, Franziska is struck by how far Temasek has come in just a decade. For two consecutive years, in 2023 and 2024, the company was recognised by the Global Sovereign Fund as a leader in governance and sustainability. In 2024, it also released its inaugural sustainability report, sharing its goals, practices and performance with the aim of fostering trust and engaging in meaningful dialogue on the topic with key stakeholders.

"Sustainability is at the core of everything we do, and one of four strategic pillars of our T2030 10-year strategy," she says. The cultural shift permeates all levels of the organisation, influencing daily operations and long-term planning. "Every leader within the organisation considers how they can contribute within their area of responsibility. We've come a long way."

"We know that to be successful as an investor, we have to operate in an environment that's healthy, where nature is intact and society thrives. Seeing our organisation boldly commit to that has been truly gratifying."

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