Australian Ethical offloads Lendlease shares over development threat to koala population

The investment manager said it believed it was one of the first funds managers in Australia to divest from a company because of concern for an endangered species.

The development proposes more than 3,000 additional houses in the Campbelltown local government area, which includes habitat for koalas.

A proposal for the project was publicly exhibited in December, and Australian Ethical and environmental campaigners have raised concern it contained insufficient information about the specific dimensions of nature corridors that would be retained for koalas.

The environment and heritage group within the New South Wales Department of Planning and Environment raised similar issues, writing in public submissions that insufficient information had been provided about biodiversity.

Australian Ethical is concerned the NSW planning and environment department and Lendlease have interpreted the advice in a way that is favourable for development and dangerous for koalas by making the habitat too narrow for the koalas to move through and survive.

Environment campaigners and scientists have also questioned whether these proposed developments adequately protect koalas and endangered ecosystems.

Comment was sought from James Griffin.