Our call to Lendlease and the NSW Government
On 21 November 2022, the NSW Government exhibited plans for Phase 2 development as part of its public consultation, which closes on 19 December.
The NSW Government had foreshadowed that it would publish mapped koala corridors for the Gilead development, showing how the average widths were calculated, but it has failed to include this information as part of its public consultation. Without this key information, there is no way for Australian Ethical or conservation groups to assess with any confidence whether the corridors will allow koalas safe passage through the site.
The corridors are needed to ensure koalas have east to west connection across the site; and to ensure the Nepean River koala corridor does not become a functional dead end at Mount Gilead.
While our engagement with Lendlease to date has been largely constructive – more details on what has been achieved here – we continue to be concerned that the development will have a net negative impact on koalas.
We’re calling for transparency
On 8 December 2022, we have made a public statement calling on the NSW Government and Lendlease to be transparent about their calculations of the width of the koala corridors, to give AE and others the ability to take part in a genuine consultation on this important issue.
Our statement makes clear that unless this information is provided, we cannot have assurance that the koalas will be sufficiently protected. If Lendlease proceeds with the Mount Gilead Phase 2 development as currently proposed, we will sell our shareholdings in Lendlease.
We use our shareholdings as leverage so that we can advocate for change within companies we are invested in, to work together towards having an overall positive impact on people, animals, and the planet. But if we can’t go any further, then we have no choice but to divest.
Accommodations Lendlease has made to date
Australian Ethical has seen positive progress by Lendlease over the course of its four-year engagement. This progress includes:
- A commitment from Lendlease that during the 10-15 years of the project there will be no less core koala habitat than exists before development started.
- Rehabilitation of 224 ha of koala habitat and the creation of 70 ha of new core habitat. This is up from Lendlease’s 2019 proposal to rehabilitate 178 ha of core koala habitat and create 39 ha of new habitat.
- The number of hectares of core koala habitat Lendlease proposes to develop has reduced from 36ha in 2019 to 14ha in 2022.
- Widening a critical section of koala corridor from what seemed to be around 85m to at least 200m.
- A commitment to providing two underpasses at Appin Road (which is currently a koala hit zone).
We are encouraged by Lendlease’s willingness to engage with AE and some environmental groups about this development. But even considering the progress that has been made, without east-west connectivity for koalas, there is a real risk the development will have a net negative impact on koalas, which is unacceptable.
Why east-west connectivity for koalas remains critical
The corridors are needed to ensure koalas have east to west connection across the site; and to ensure the Nepean River koala corridor does not become a functional dead end at Mount Gilead.
Lendlease proposes to provide a passage for koalas to move east-west across the site from Noorumba Reserve through Menangle Creek to the Nepean River (corridor A) and from Beulah Reserve up to Menangle Creek to the Nepean River (corridor B). It also proposes to provide a north-south corridor along the Nepean River.
We have two concerns about Lendlease’s proposed corridors.
First, all three of the proposed corridors on Lendlease’s site (corridors A and B, and the Nepean River) converge at the confluence between the Nepean River and Menangle Creek. It is therefore critical that koalas pass through this section of the corridor. If koalas do not pass through it, three corridors will be functional dead-ends.
Under Lendlease’s plans as put to the independent Panel of the Office of the NSW Chief Scientist (the Panel), this critical section of koala corridor was narrow, and would pass under new road infrastructure associated with the Lendlease development. The Panel raised serious concerns about whether this section of the proposed corridor will be used by koalas because of how narrow it is and because of the road infrastructure. Lendlease has told us that it has since proposed to widen the corridor here, but we need to see mapping of the corridors to enable independent assessment of whether this critical section of corridor will be functional.
Second, the corridors must meet the average width recommendations and the method and application of that method for calculating the average width must be fair and transparent. Lendlease was strongly criticised by the Panel for how it initially calculated the average width. The NSW government has confirmed that the corridors will meet the minimum requirements, but we do not think Government endorsement of Lendlease’s plans gives sufficient certainty. There is some ambiguity in how the Panel’s recommendations should be interpreted and applied. And successive governments have failed to prevent the decline of native species, including koalas.
This is why we need to see the calculations in order to make an assessment.
Ethical Assessment of Mount Gilead Development
We want to be transparent with you about our framework for assessing this development.
You can read the full Ethics Assessment here, or the summary, below.
- We should avoid investing in a company known to be engaging in an activity that has a direct adverse impact on a population of a vulnerable species in a way that could (in isolation or together with other reasonably foreseeable impacts) threaten the viability of that population.
- Where it is known a company is engaging in an activity that has the potential to adversely impact a population of a vulnerable species, they have the burden of proof to demonstrate that it is not reasonably foreseeable that their proposed activity will (in isolation or together with other reasonably foreseeable impacts) threaten the viability of that population.
- Lendlease is developing a site with the potential for significant adverse impacts for an important koala population. Koalas are endangered in NSW.
- While it is taking significant steps to mitigate adverse impacts and we consider it is possible the development could on balance have positive impacts for koalas, we have concerns about several potential impacts.
- To demonstrate that it is not reasonably foreseeable its development will have these adverse impacts that will (together with other reasonably foreseeable impacts) threaten the viability of the population, we think Lendlease needs to
- at least ensure its stage 2 proposal:
- provides corridors that are a minimum 250m wide, particularly at the critical juncture between corridor A, corridor B and the Nepean River corridor (i.e. at the confluence of the Nepean River and Menangle Creek);
- provides corridors that are an average minimum width of 390-425m and be transparent about the methodology used and its application;
- leaves open the possibility of providing koalas an alternative east-west connection to the Nepean River that meets all the recommendations made by the expert Panel of the Office of the NSW Chief Scientist with respect to koala corridors;
- demonstrate that there will be no net loss of territory or quality habitat for koalas, taking into account the value of the cleared paddock areas currently accessible to them over residential development, and the value of established koala habitat over newly planted trees; and
- demonstrate that its koala protection infrastructure will be maintained under the strongest legal mechanisms available.
- at least ensure its stage 2 proposal:
- If Lendlease commences (or states its intention to commence) stage 2 of the Mount Gilead development without meeting the above requirements, then based on our current understanding, continued investment in Lendlease would not be aligned with the Australian Ethical Charter.