Global real estate investor Hines announced today a new climate target to reach net zero across all buildings by 2040. The company aims to achieve its goal through investments in renewable technologies and energy efficiency measures, and without purchasing offsets.

Buildings and real estate are significant contributors to the global climate challenge, accounting for approximately 40% of carbon emissions, according to the International Energy Agency and UN Environment Programme. They are also among the hardest sources of emissions to replace, given their long-term nature.

With assets under management of more than $90 billion, Hines’ portfolio consists of 1,530 properties across 285 cities in 28 countries. The company’s net zero strategy includes plans to electrify fossil fuel-based systems within its buildings, use circular systems principles to reduce energy waste and increase system efficiency, and pursue onsite and off-site renewables that promote renewable energy development.

Hines also plans to establish agreements with third-party partners to provide data to track progress on energy consumption and ongoing emissions reductions.

Jeff Hines, the Chairman, and Co-Chief executive officer of Hines, said:

“As the impact of climate change is becoming increasingly integrated into our lives every day, the real estate industry has a responsibility to acknowledge this growing problem and take meaningful action to reduce our collective carbon emissions. By seeking to achieve net-zero operational carbon without relying on offsets, Hines wants to raise the bar for sustainability and invest in a plan designed to achieve significant and tangible results.”