Mr Leon Perera: Mr Chairman, I am heartened by the growing passion and quality of debate inside and outside this House regarding our climate challenges. Our sovereign wealth funds as global players should rightfully play a leading role in the effort to decarbonise. We could kickstart this by having our Sovereign Wealth Funds (SWF) adopt the PSTLES style framework directed by MOF.
First, it is good that Temasek has committed to half 2010 net portfolio emissions by 2030 and to deliver net zero by 2050, But this refers to only scopes 1 and 2 emissions. Can Temasek include scope 3’s indirect emissions into its commitment since portfolio companies are often investors themselves?
On GIC’s end, we have no visibility in its portfolio environmental targets, will GIC release this information?
While it may be impossible to disclose the full extent of investments, the declaration of standards companies must fulfil before a SWF can invest in them would be positive. Norway’s SWF outlines concrete expectations of companies that it invests in and has an exclusion list on the types of companies that do not meet ethical and environmental standards. An explicit statement allows for accountability and sends a powerful message to the business community about what the Singapore brand stands for.
Ministry of Finance
26 February 2021
Office of the Leader of the Opposition 