An Australian pension fund has divested from a land development company in protest of its decision to proceed with a project that could threaten the survival of one of the last remaining healthy koala colonies in New South Wales.
Australian Ethical announced Monday it had sold its A$11 million ($7 mln) in shares in ASX-listed Lendlease Group over its decision to proceed with Stage 2 of the Figtree Hill housing development in Mt Gilead, southwest of Sydney.
It believes it is one of the first fund managers in the country to divest from a company out of concern for an endangered species.
“We don’t take divestment lightly. It is our last resort, and it is a valuable and necessary part of our advocacy process,” the company said in a statement.
The decision followed the superannuation fund warning Lendlease in December it would divest in the company if it proceeded with the development in its current form without providing critical information about planned koala corridors.
Last month the Australian government officially listed koalas as endangered after a fall in numbers due to a combination of land clearing, bushfires, and a pervasive chlamydia epidemic.
Australian Ethical noted that independent advice from the Office of the NSW Chief Scientist and Engineer had made it clear that Mt Gilead is critical to the survival of the koala colony and that wildlife corridors need to provide the creatures safe passage across the site.
The fund said it had “lost faith after recent talks with Lendlease stalled”, and noted the NSW Department of Planning & Environment had failed to commit to a meaningful public consultation ahead of its statutory deadline for making a decision by July 21.
“Neither Lendlease or the NSW Department of Planning & 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,” Australian Ethical spokesperson Amanda Richman said in a statement.
“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.”
The fund called on NSW Minister for Environment and Heritage James Griffin to intervene.
It said that government environmental protection body Environment and Heritage Group (EHG) wrote to the department in December stating the current Lendlease proposal was inconsistent with recommendations contained in the NSW chief scientist advice and subsequent expert reports.
“EHG does not support the exhibited planning proposal, including the structure plan of the Biodiversity Certification Assessment Report and Strategy,” the body told the department last year, citing a lack of information on the proposal.
Richman said the previous public consultation on the development was redundant from a biodiversity perspective because the public had not been given the full picture.
“Our fear is that this development will be approved without the proper public consultation on the environment impacts,” she said.
“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.”
The fund said it had sold its debt and equity positions in Lendlease and related vehicles.
At the same time, it launched a letter campaign, urging the public to write to the minister to ensure a transparent public consultation for the development is held.
A Lendlease spokesperson told the Guardian that the company had engaged with Australian Ethical for several years and that its plans “fully adhere to the independent and expert recommendations of the NSW chief scientist”.
“Our A$35m investment into conservation at Gilead includes creating koala corridors that have been independently assessed as meeting the recommendations of the chief scientist in terms of width and connectivity,” they said.
A development update on the Campbelltown City Council website last month said the council had worked to ensure that wildlife corridors and safe fauna crossing points would be included in the planning process.
It said the council said it supported the NSW chief scientist’s recommendation of an average wildlife corridor width of 390-425 metres.
The council said Lendlease has made an offer to construct a koala/fauna underpass near a site, and the delivery of this work would be incorporated into a future state voluntary planning agreement.
“Council considers these protection measures to be vital in ensuring the safety of Campbelltown’s koala population and people travelling along Appin Road,” it said.
“Staff will continue to work with the NSW chief scientist, the Department of Planning, Industry and Environment, and the proponent, Lendlease, to ensure important protections measures are implemented.”
Stuart Blanch, a conservation scientist with the World Wildlife Fund, told the ABC that other companies may follow Australian Ethical’s decision and reconsider investing in companies they believed were not putting the environment first.
“I hope it sends a signal to other big banks and pension funds and super funds, that you have to be nature positive,” he said.
Campaign group Save Sydney’s Koalas took to Twitter, describing Australian Ethical’s decision as “significant” and that other superfunds should follow.
By Mark Tilly – mark@carbon-pulse.com
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