STOCKLAND SUSTAINABILITY DMA SERIES Biodiversity FY16 Why this is important to Stockland Development is a key activity for Stockland, yet development brings challenges and opportunities for our business, particularly in new urban growth corridors. We develop new land for housing, including infrastructure and social amenities, to create sustainable, thriving communities. Developments on greenfield sites can impact local bushland habitat, ecological communities and protected or significant species. As part of our strategy to deliver shared value, we aim to minimise and mitigate these impacts to protect the biodiversity of our surrounding environments. We appreciate that preserving biodiversity enhances the liveability and vitality of our communities over the long term. Our Liveability Index surveys (with our residential communities) tell us that customers value green space and so balancing developable land with retention and activation of biodiversity is critical to the success of our masterplanned communities. We also understand the inherent value of biodiversity conservation to ensure the values of Australia’s unique flora and fauna are preserved. By effectively minimising and mitigating the impacts on biodiversity, we are also able to reduce development approval delays at a local, state and national level. The impacts of our business on biodiversity are, for the most part, unique to our greenfield residential developments and in particular our masterplanned communities. These impacts occur both during construction and as a result of urbanisation. Threats to biodiversity from construction include: clearing; Threats to biodiversity from urbanisation include: poaching species; sediment runoff; nutrient runoff; encroachment of invasive species; contamination of soil from runoff; changed hydrological regimes; and litter pollution; removal or destruction of habitat such as logs, trees (obstructing views) and streams; vegetation root disturbance. introduction of predators and invasive species; isolation of habitat; reduced genetic diversity; and altering hydrological and fire regimes. An overview of our management approach is provided on page 5. Our key achievements Conservation and protection in perpetuity of around 1,750 hectares of land for the purposes of managing biodiversity, upon completion of our current projects. This includes land both on our sites and land offsite dedicated as an offset for biodiversity loss. Completed the development of Stockland’s biodiversity calculator, which assesses the change in biodiversity value of our projects based on an initial pre-development value at a site. We have now applied the calculator to six new projects with all projects achieving a positive biodiversity outcome. In this document you will find: FY16 Priorities and Performance Overview 2 FY16 Performance & Case Studies 2 Future priorities 2 Management Approach 5 Stockland Sustainability DMA Series • Optimise and Innovate • Biodiversity 1 Biodiversity FY16 priorities and performance overview FY16 PRIORITIES STATUS FY16 PERFORMANCE For new masterplanned residential communities being planned from FY15, make an aggregated net positive contribution to the biodiversity value by FY17 as determined by the Biodiversity Calculator. In Progress 100% of new projects (6) achieved a positive Biodiversity score for FY16. Future priorities For new masterplanned residential communities being planned from FY15, make an aggregated net positive contribution to the biodiversity value by FY17 as determined by the Biodiversity Calculator. FY16 performance and case studies We piloted a biodiversity calculator in FY15 to assess the change in biodiversity value of our projects based on an initial predevelopment value at a site. We applied the calculator to six new projects in FY16, including The Grove, Pallara, Calleya, Cloverton, Altrove (formerly Schofields) and Willowdale, with all six projects achieving a positive biodiversity outcome. The biodiversity calculator was also used to help us demonstrate the conservation outcomes for projects where we sought Green Star ratings from the Green Building Council of Australia (GBCA). Refer to the Management Approach section for further information on the biodiversity calculator. In FY16, we had 25 projects in the construction phase with identified biodiversity onsite to be protected. We will have placed approximately1,750 hectares of land into protection for the purposes of biodiversity management once these projects are complete. Many of the areas identified for protection include species that are considered threatened or vulnerable. At Allura in Victoria, for example, we are protecting local grassland habitat for the Golden Sun Moth, and at Calleya in Western Australia we are protecting the Spider Orchids. We are also protecting various areas of koala habitat across our South East Queensland projects. Frog tunnels under the Davis Creek intersection CASE STUDY Growling Grass Frogs at The Grove The Grove is a 2500-lot Stockland masterplanned community in Melbourne’s western suburbs, which will eventually be home to around 6000 people. The Grove covers an area of 234 hectares and includes parts of Davis Creek, home to one of Melbourne’s most threatened species, the Growling Grass Frog. The Growling Grass Frog has suffered a tumultuous past, long used by zoos, universities and schools for dissections and for feeding snakes. However, it is now protected by the Victorian Government's Biodiversity Conservation Strategy. One of the critical impacts on the Growling Grass Frog at The Grove is its ability to traverse its natural habitat along Davis Creek, and this is particularly important where the creek crosses or runs under a roadway. To maintain this traverse, Stockland is constructing a crossing under the corner of Sayers Road and Davis Road that will enable the frog’s continuous movement along Davis Creek. This crossing consists of two sets of 100m tunnels that will carry water from one side of the intersection to the other. Stockland Sustainability DMA Series • Optimise and Innovate • Biodiversity The tunnels include light wells to avoid the long dark passages that would discourage entry or make frog movement dangerous. Overall, The Grove will protect and enhance close to 50 hectares of natural habitat, including habitat along Davis Creek and Werribee River for local native species such as the Growling Grass Frog. 2 Biodiversity We use a range of mechanisms to protect land containing biodiversity including: The preparation of Biodiversity Management Plans; Covenants on titles at Highland Reserve and The Observatory in Queensland, where areas of significant ecological value are located on allotments; and Conservation zoning and transfer of land to public authorities. At Cloverton in Victoria, for example, land will be transferred to either Melbourne Water or Hume City Council to be managed in perpetuity. At Brooks Reach in NSW, we will be protecting ecology onsite through a mix of land transfer and covenants and protecting land offsite through the NSW Biobanking scheme, as an offset for onsite works. Biodiversity value is identified through site investigations undertaken by experienced ecologists throughout the process of masterplanning a project. Proposed conservation actions are then reviewed by the local or state regulatory authority for approval. We are currently masterplanning two new projects in South East Queensland (Paradise Waters and Waterway Downs) that will further contribute to conservation of significant biodiversity and habitat identified through the masterplanning process. We delivered around 100 hectares of rehabilitation works during the year. Rehabilitation activities help support the longevity and resilience of significant biodiversity identified on our sites. Rehabilitation is generally undertaken by specialist contractors, such as Greening Australia, and we also work closely with community groups. At Aura on the Sunshine Coast, we are working with South East Queensland Catchments, which is managing our community reference network of up to 20 local stakeholder groups. Our projects with significant biodiversity are outlined in the table below. The change in biodiversity value refers to projects that have achieved a positive contribution to overall biodiversity, as assessed under our biodiversity calculator in FY16. PROJECTS WITH AREAS OF SIGNIFICANT BIODIVERSITY VALUE TOTAL BIODIVERSITY AREA APPROXIMATE (HA) CHANGE IN BIODIVERSITY VALUE STATUS REGION DEVELOPMENT LOCATION TOTAL LAND (HA) Released to market Victoria Allura Truganina 140 21.9 Eucalypt Epping 81 25.7 Highlands Craigieburn 970 43.9 Mernda Villages Mernda 203 15.4 Cloverton Kalkallo 1,141 130 +18.05 The Grove Tarneit 98 30 +4.11 Amberton Eglinton 198 241 Calleya Banjup 145 11.5 Sienna Wood Brookdale 330 49.7 Vale Aveley 541 20 Altrove Schofields 52 9 Brooks Reach South Coast 65 42.8 Murrays Beach Lake Macquarie 160 28.5 Willowdale Leppington 350 131 Elara Marsden Park Augustine Heights Augustine Heights Aura Caloundra South Western Australia New South Wales Queensland Stockland Sustainability DMA Series • Optimise and Innovate • Biodiversity +3.2 +2.7 +1.32 2.4 68 47 2360 300 3 Biodiversity STATUS REGION Development Queensland pipeline TOTAL LAND (HA) TOTAL BIODIVERSITY AREA APPROXIMATE (HA) 215 64 44 5.2 1031 300 DEVELOPMENT LOCATION Brightwater Sunshine Coast Hundred Hills Murwillumbah North Shore Townsville Ormeau Ridge Ormeau 17 42 Pallara Pallara 122 88 Stone Ridge Narangba 47 8.5 The Observatory Kingsmore 300 75 Vale Logan 43 17 Paradise Waters Deebing Heights 338 80 98 51 Waterway Downs CHANGE IN BIODIVERSITY VALUE +27.59 CASE STUDY Aboriginal fire management Stockland’s emerging A$5 billion city of Aura on Queensland’s Sunshine Coast is demonstrating the benefits of wide-ranging community engagement from the very early stages of the project. Previously under pine plantation and grazing, the land of Stockland’s Aura residential development was becoming dominated by pine tree regrowth, melaleuca and casuarina regeneration, with a high fuel load of introduced weeds and grasses. A controlled ecological burn was therefore undertaken in June 2016 that followed the ancient cultural practices of Australian Aborigines. Stockland provided support for the burn program through its Aura Community Stewardship Program (ACSP). The ACSP was developed by Stockland, community organisations and the Sunshine Coast Council to identify and optimise community land care opportunities within the Aura development. This collaboration made it possible for cultural fire experts to teach cultural fire management techniques to local Kabi Kabi and Bunya Bunya Country Aboriginal Corporation members, including how to undertake low energy burns with well-considered spot ignition points to promote biodiversity. The burn was undertaken by the Traditional Custodians and supported by Rural Fire Brigades and Queensland Fire and Emergency Services (QFES). Susie Chapman, South East Queensland Catchments Manager, said, “We are particularly grateful to the volunteers from the five Rural Fire Brigades who supported the Traditional Custodians to carry out this ecological burn, and especially Beerwah Fire Warden Lou Spann, who co-ordinated their involvement with a profound understanding of the traditional approach.” A video of the Aura traditional bush fire management trials can be viewed here. Kabi Kabi First Nation and Bunya Bunya Country Aboriginal Corporation member Kerry Jones was excited to be part of the first burn on the coast since traditional times. “It was a great experience really connecting with country and doing things how they’re supposed to be done,” Kerry said. “We are grateful to Stockland for providing this opportunity and I’m looking forward to working with the Rural Fire Brigades more and carrying the practice on for future generations.” Stockland Sustainability DMA Series • Optimise and Innovate • Biodiversity 4 Biodiversity Management approach Management approach overview We strive to maintain a delicate balance between protecting biodiversity and developing communities based on good urban design principles. Most of the time, good urban design aligns with biodiversity protection; however, sometimes principles of efficient and effective land use (such as increased density around transport and employment nodes) can conflict with principles of biodiversity conservation. Our goal is to better understand biodiversity protection, management and enhancement opportunities in our communities. Biodiversity is heavily regulated across all states in which we operate and can require approval across three levels of government. We work closely with local councils, state governments or the federal government to identify and conserve significant species or habitats on or adjacent to our sites. Factors that influence biodiversity impacts and management include: Nature of the biodiversity affected – including the type of habitat, community or species, the size and quality of the habitat and the viability of bushland, waterway and open space corridors adjacent to our site. Planning and design – urban design considerations such as access routes, the location of town centres and public transport options (both proposed and existing), and the required lot size and quantity to ensure viability and liveability of the development. These decisions can impact the location of infrastructure and housing and therefore biodiversity conservation on a project site. Ongoing management – ownership opportunities and responsibilities beyond the development phase of the project. It is important that if decisions are made to protect long-term biodiversity in urban areas, appropriate ownership models are agreed, such as public ownership by a local council, planning instrument protection such as environmental protection zones, and management considerations such as weed removal, appropriate fire regimes and feral animal control. When a decision is made to develop in an area of significant biodiversity, we implement a range of programs to manage any adverse impacts including rehabilitation programs, on and offsite conservation, the provision of research funding and the reversal of impacts associated with pre-existing uses such as grazing. Consistent with our Group-wide management approach, minimum performance standards have been included in the residential sustainability policy. The policy outlines the biodiversity requirements when developing our communities and helps our communities and assets move beyond minimum standards, complementing local regulation. Biodiversity Management Plans Threatened species with habitats affected by our operations are considered as part of the environmental approval process on each development. In many cases, we are able to conserve local biodiversity and place a large portion (if not all) of the significant species found on our sites into protected areas. Protected areas are then handed to local councils and the community to access and manage in perpetuity. Projects with significant biodiversity are required to prepare a Biodiversity Management Plan (BMP), which identifies areas of biodiversity to be conserved or offsets to be provided. It also provides details relating to the rehabilitation or revegetation and protection of biodiversity and the provision of funding to ensure protected areas can be appropriately managed over the long term. We partner with environmental or community groups to deliver activities committed to in the BMPs, such as tree planting, weeding and education programs. Biodiversity calculator In FY15, we developed a biodiversity calculator to assess the change in biodiversity value of our projects based on an initial pre-development value at a site. The calculator was developed to help us measure whether our projects will achieve our target of delivering a positive contribution to biodiversity. The calculator takes into account elements such as category of threat under which species or communities are listed in state and Commonwealth legislation, size and condition of the habitat, likely impact, degree of conservation and agreed offsets. The calculator is applied at a project level and results are aggregated across the portfolio. The calculator is based on the biodiversity calculator used by the GBCA to assess changes in ecological value for Green Star projects. Stockland Sustainability DMA Series • Optimise and Innovate • Biodiversity 5 Biodiversity Roles and responsibilities Our biodiversity approach, targets and performance tracking are overseen by our Board Sustainability Committee. An employee Sustainability Steering Committee also provides guidance on biodiversity issues. Accountability for biodiversity delivery sits with various members of the Executive Committee, including the CEOs of the Commercial Property, Residential and Retirement Living business units. Stockland’s Chief Operating Officer assumes ultimate responsibility at a Group level for biodiversity and reports directly to the Managing Director and CEO. The National Sustainability Manager has responsibility for ensuring the effective implementation and evaluation of Stockland’s biodiversity approach and is supported by a team of sustainability specialists. This team guides the Residential, Retirement Living and Commercial Property asset teams in effective delivery of the sustainability policy for each business unit. Our Development Managers and Project Managers are responsible for ensuring that biodiversity is effectively managed at a project level. Review and evaluation process Processes for management of biodiversity are under the control of the federal and state governments. Our key role is to ensure compliance and identify opportunities to better understand biodiversity value on our projects. Our project approvals will stipulate requirements in relation to biodiversity, and a Biodiversity Management Plan will be prepared to support a development application or as a condition of development consent. We engage our construction contractors on the basis that they deliver on our approval conditions, including any conditions relating to biodiversity. Development Managers and Project Managers conduct a project management review process to ensure contractors are capable of delivering our biodiversity conditions. Our contractors are then managed through regular site meetings and reporting to ensure biodiversity conditions are met. We monitor all projects through a six monthly data collection process to understand progress and project responses to biodiversity management. Our projects report on biodiversity at various stages of the development process. At the completion of the master plan, we report on expected impacts and protection plans. Projects also report during construction on the delivery of management actions. To access the complete list of documents in Stockland’s Sustainability DMA Series, click here. Stockland Sustainability DMA Series • Optimise and Innovate • Biodiversity 6
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