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Developers are often required by law to offset environmental impacts through targeted conservation actions. Most offset policies specify metrics for calculating offset requirements, usually by assessing vegetation condition. Despite widespread use, there is little evidence to support the effectiveness of vegetation-based metrics for ensuring biodiversity persistence. We compared long-term impacts of biodiversity offsetting based on area only; vegetation condition only; area × habitat suitability; and condition × habitat suitability in development and restoration simulations for the Hunter Region of New South Wales, Australia. We simulated development and subsequent offsetting through restoration within a virtual landscape, linking simulations to population viability models for 3 species. Habitat gains did not ensure species persistence. No net loss was achieved when performance of offsetting was assessed in terms of amount of habitat restored, but not when outcomes were assessed in terms of persistence. Maintenance of persistence occurred more often when impacts were avoided, giving further support to better enforce the avoidance stage of the mitigation hierarchy. When development affected areas of high habitat quality for species, persistence could not be guaranteed. Therefore, species must be more explicitly accounted for in offsets, rather than just vegetation or habitat alone. Declines due to a failure to account directly for species population dynamics and connectivity overshadowed the benefits delivered by producing large areas of high-quality habitat. Our modeling framework showed that the benefits delivered by offsets are species specific and that simple vegetation-based metrics can give misguided impressions on how well biodiversity offsets achieve no net loss.

Setting aside protected areas is a key strategy for tackling biodiversity loss. Reserve effectiveness depends on the extent to which protected areas capture both known occurrences and areas likely to support the species. We assessed the effectiveness of the existing reserve network for Leadbeater's Possum (Gymnobelideus leadbeateri) and other forest-dependent species, and compared the existing reserve system to a set of plausible reserve expansion options based on area targets implied in a recent Population Viability Analysis (PVA). The existing Leadbeater's Reserve and surrounding reserve system captured 7.6% and 29.6% of cumulative habitat suitability, respectively, across the landscape. Expanded reserve scenarios captured 34% to 62% of cumulative habitat suitability. We found acute trade-offs between conserving Leadbeater's Possum habitat and conserving habitat of other forest-dependent species. Our analysis provides a template for systematically expanding and evaluating reserve expansion options in terms of trade-offs between priority species' needs.