(Bloomberg) --

Australian Ethical Investment said it could sell its holding in Lendlease Group because the construction company’s planned housing development near Sydney threatens a vulnerable koala colony, the Australian Broadcasting Corp reported.

Lendlease wants to develop 4,000 houses at Gilead and was told by New South Wales state officials to take steps to protect the colony, including providing koala corridors, the ABC reported. Australian Ethical said it is impossible to determine from project plans whether those directives have been followed, according to the report.

The fund said the project in its current form is not transparent about how it will protect koala habitats, and it would have to divest if Lendlease proceeds, the ABC reported, citing ethical stewardship lead Amanda Richman.

Lendlease has fully adhered to the state’s requirements, and has had the koala corridor plans independently assessed as meeting the recommendations, the ABC said, citing a company spokesperson.

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