A $5.8 billion ethical investment fund in Australia sold all its shares in Lendlease Group, one of the country’s biggest property developers, saying a planned housing project in southwest Sydney threatens a vulnerable koala colony.
(Bloomberg) — A $5.8 billion ethical investment fund in Australia sold all its shares in Lendlease Group, one of the country’s biggest property developers, saying a planned housing project in southwest Sydney threatens a vulnerable koala colony.
Australian Ethical said the sale is among the first to be made on the grounds of impact on an endangered species. The fund, which manages A$8.7 billion of assets ($5.8 billion), sold Lendlease stock worth A$11 million, it said Monday.
The exit forms part of a growing policy shift among professional money managers. Environmental, social and governance-focused investments worldwide are set to almost double to $34 trillion in 2026 from 2021 levels, according to PwC.
“Australian Ethical cannot continue to support a company that appears to be failing to take biodiversity protection seriously,” fund spokesperson Amanda Richman said in a statement. Australian Ethical, which doesn’t invest in fossil fuel, nuclear or tobacco companies, has sought to strengthen protections for koalas at Lendlease’s Gilead development for at least four years.
Lendlease said in a statement its A$35 million investment in conservation at Gilead includes creating koala corridors that meet government recommendations for width and connectivity.
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