The ethical investment manager has divested itself from Lendlease over the latter’s planned development at Mt Gilead in south-western Sydney, which it said could threaten the survival of one of the last remaining healthy koala colonies in NSW.
The sale comes after Lendlease failed to provide adequate information about planned koala corridors, despite Australian Ethical warning that it would divest its shareholdings in Lendlease if it proceeded with Stage 2 of the development in its current form.
Independent advice from the Office of the NSW Chief Scientist and Engineer (OSCE) has revealed that the site is crucial to the survival of the koala colony, and wildlife corridors must provide safe passage for koalas across the area.
Australian Ethical said that despite its efforts to engage Lendlease in discussions to strengthen koala protections, talks stalled, and the NSW Department of Planning and Environment (DPE) has failed to commit to a meaningful public consultation ahead of its statutory deadline for making a decision by July 2023.
“For over four years we have used our shareholdings in Lendlease to encourage it to strengthen koala protections, but Australian Ethical cannot continue to support a company that appears to be failing to take biodiversity protection seriously,” said Amanda Richman, the Australian Ethical spokesperson.
“We’ve been clear that Australian Ethical would continue to advocate until we have exhausted all avenues with Lendlease to improve koala protections, and we’ve now reached that point.”
In December, the NSW government’s environmental protection body, the Environment and Heritage Group (EHG), wrote to DPE stating that Lendlease’s current proposal is inconsistent with recommendations contained in the OSCE advice and subsequent expert reports.
EHG told DPE that “EHG does not support the exhibited planning proposal, including the structure plan or the Biodiversity Certification Assessment Report and Strategy”, essentially due to a lack of information on the proposal — which mirrors the concerns Australian Ethical raised with DPE late last year.
Australian Ethical has called on NSW Minister for Environment and Heritage James Griffin to intervene to protect the koala colony from the potentially devastating effects of the development.
“Neither Lendlease or the NSW Department of Planning and Environment has given the public meaningful information about the proposed koala corridors at Mt Gilead, and we have serious concerns about the way the reports from the NSW Chief Scientist and other experts are being interpreted by the Department,” Ms Richman said.
“The previous public consultation on the development is redundant from a biodiversity perspective because the public hasn’t been given the full picture. Our fear is that this development will be approved without proper public consultation on the environmental impacts.
“The minister needs to ensure there is a transparent public consultation because, as it stands, we cannot be confident that this koala colony will survive the developments proposed for the area.”
Australian Ethical also has an investment in an unlisted property trust, the Australian Prime Property Fund - Retail, which is managed by Lendlease. This holding is illiquid, but Australian Ethical said it would exit the fund as soon as it is able.
