Buildings efficiency, controls, and automation company Johnson Controls and alternative investment manager Apollo Global Management announced today a new strategic partnership, aimed delivering decarbonization and energy efficiency solutions for commercial buildings, while optimizing building performance.

The new partnership targets one of the key focus areas for organizations pursuing climate goals, as buildings are a key source  – roughly 15% – of global greenhouse gas (GHG) emissions, and also one of the hardest to replace, given their long-term nature.

The new initiative follows the launch earlier this year by Johnson Controls of a series of ESG commitments, including a pledge to help customers reduce their own emissions. The company recently launched the OpenBlue smart buildings technology and services, and last month, unveiled the sustainable buildings-focused OpenBlue Net Zero Buildings as a Service.

Johnson Controls Executive Vice President and CFO Olivier Leonetti, said:

“Meeting decarbonization, energy efficiency and sustainability goals while managing risk and reducing cost is a clear priority for our customers. This new venture with Apollo combines strategic capital with our cutting edge OpenBlue services to provide customers with guaranteed outcomes and risk management models to achieve emission reductions and sustainability commitments and contribute to healthier buildings, people, places and planet.”

The new North America-focused venture combines Johnson Control’s smart buildings capabilities with Apollo’s infrastructure expertise and fund capital, providing fully financed turnkey solutions to meet the decarbonization and cost optimization goals for customers including schools, campuses, data centers, healthcare facilities as well as commercial and industry facilities.

Geoffrey Strong, Senior Partner and Co-Head of Infrastructure and Natural Resources at Apollo, said:

“We see strong and enduring demand for greater energy efficiency and sustainability. This new venture will help companies find innovative, more affordable means to take on these critical infrastructure projects and aligns with Apollo’s longstanding commitment to ESG.”