SINGAPORE (Oct 10): Singapore’s Temasek Holdings Pte has decided against investing in Saudi Aramco’s initial public offering, in part over environmental concerns, according to people familiar with the matter.

The world’s most-profitable company first flagged a public share sale in 2016 and is expected to list with a valuation of between US$1.1 trillion to US$2 trillion ($1.5 trillion to $2.8 trillion) later this year. It’s been courting funds globally to act as cornerstone investors, including Temasek, which had a net portfolio value of $313 billion as of March 31.

But Temasek’s focus on sustainability and environmental, social and governance principles made it more difficult to support Aramco’s share sale, the people said, asking not to be identified because the discussions are private. Temasek has a 2030 goal to reduce the carbon emissions of its portfolio companies by 50%.

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