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BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.

What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:

  • who holds an Australian Financial Services License

  • who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)

  • that is a body regulated by APRA other than a trustee of:
    (i) a superannuation fund;
    (ii) an approved deposit fund;
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme.
    within the meaning of the Superannuation Industry (Supervision) Act 1993

  • that is a body registered under the Financial Corporations Act 1974.

  • that is a trustee of:
    (i) a superannuation fund; or
    (ii) an approved deposit fund; or
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme
    within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.

  • that is a listed entity or a related body corporate of a listed entity

  • that is an exempt public authority

  • that is a body corporate, or an unincorporated body, that:
    (i) carries on a business of investment in financial products, interests in land or other investments; and
    (ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.

  • that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.


I Disagree

Sustainable Investing

Sustainable supply chains

Supply chain sustainability has become increasingly important when determining whether companies meet environmental, social and governance (ESG) standards when sourcing their materials. The analysis focuses of the production of the ingredients or components that go into the product, rather than the end-product itself and the labor standards involved.


In many industries, it exposes issues with unsustainable practices at various stages of the supply chain, from extraction and initial manufacturing, to the transportation, distribution and storage of components. Common problems include labor force abuses, unsustainable mining, over-extraction of organic resources and processing methods that are polluting.

A number of industries face significant ESG problems at the beginning of the supply chain. These include:

  • Unsustainable practices in the meat and fish supply chains, including factory farming, overuse of antibiotics, overfishing and the use of deforested land to rear cattle. Robeco has engaged strongly over the years on these issues, with encouraging results.

  • Poor labor practices in the textiles supply chain – particularly unsafe working conditions and low pay in sweat shops to make clothes for the Western market. This can lead to disasters such as the Rana Plaza tragedy in Bangladesh in 2015. Robeco was a co-founder of the Platform Living Wage Financials, which tries to counter this kind of thing.

  • Deforestation in the palm oil supply chain, in which plantation managers clear virgin forest land to meet Western demand for this essential product. This is a major engagement theme for Robeco, including the use of a spy satellite to detect deforestation.

  • Environmentally hazardous mining practices in the commodity supply chain that have led to significant pollution and fatal accidents, which include tailings dams collapsing at iron ore or copper mines. Robeco has engaged heavily on this topic for many years, focusing mainly on Brazil.


Examples of how engagement has brought improvements in the textiles and food sectors.

Examples of how engagement has brought improvements in the textiles and food sectors.

Source: Robeco

Creating returns that benefit the world we live in

Even industries that are thought of as very sustainable face supply chain problems. Manufacturers of electric cars, for example, must source lithium and cadmium as raw materials for car batteries. These minerals are fairly rare and run the risk of being sourced from suppliers using child labor and environmentally destructive practices in Africa and South America.

Companies stand to face significant reputational damage if their supply chains are not carefully monitored and they become embroiled in a scandal. Corporations therefore increasingly see sustainability in the entire supply chain as being essential to long-term profitability. A sustainable supply chain can also offer value creation opportunities and competitive advantages.

See also:

Active ownership
Corporate controversies
Engagement


Related insights

Robeco

Robeco aims to enable its clients to achieve their financial and sustainability goals by providing superior investment returns and solutions.

Important information: This website is prepared and issued in Australia by Robeco Hong Kong Limited (ARBN 156 512 659) (‘Robeco’) which is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order 03/1103. Robeco is regulated by the Securities and Futures Commission under the laws of Hong Kong and those laws may differ from Australian laws. The information on this web page is provided to you because Robeco reasonably believes that you are a "wholesale client" within the meaning of that term under section 761G(4) of the Corporations Act 2001 (Cth) ("Corporations Act") and not any other class of persons. This information is not an advertisement and is not intended to induce retail clients to acquire Robeco products. Retail clients who are interested in Robeco products should contact their financial adviser.