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Decarbonization

Johnson Controls, Apollo Global Management launch joint venture for building energy-efficiency, decarbonization services

Aug. 16, 2021
The venture says it will offer turnkey infrastructure services that optimize building performance leveraging OpenBlue smart buildings technology.

Johnson Controls and funds managed by private-equity firm Apollo Global Management Inc. entered a strategic partnership that provides sustainability and energy-efficiency services to help building owners address decarbonization and operating-cost goals. “The new venture is intended to provide customers across the United States and Canada with performance-based energy efficiency and smart buildings services at no upfront costs and with predictable monthly fees,” the companies said when announcing the venture.

The sustainability services will leverage Johnston Controls’ OpenBlue smart buildings technology and services, including their recently launched NetZero Buildings as a Service. Apollo brings infrastructure expertise and fund capital, which they say will offer flexible solutions to meet energy savings and decarbonization objectives. “Johnson Controls is a trusted global leader in sustainable buildings, and we’re thrilled to combine their expertise and scaled suite of services with our fund capital and experience to bring customers fully financed, turnkey solutions to lower energy costs, improve energy reliability and reduce their carbon footprint,” said Geoffrey Strong, senior partner and co-head of infrastructure and natural resources at Apollo. “We see strong and enduring demand for greater energy efficiency and sustainability. The new venture will help companies find innovative, more-affordable means to take on these critical infrastructure products and aligns with Apollo’s longstanding commitment to ESG.”

The venture targets efficiency offerings tailored to schools, campuses, data centers, healthcare facilities as well as commercial and industrial facilities, as properties look to meet environmental standards to combat climate change and reach carbon-neutrality goals. “The partnership provides a new strategic option for addressing the North American segment of the global market for decarbonization retrofit and services over the next decade,” the companies added.

“Meeting decarbonization, energy efficiency and sustainability goals while managing risk and reducing cost is a clear priority for our customers,” said Johnson Controls executive vice president and chief financial officer Olivier Leonetti. “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.”

Related: Results of Johnson Controls’ recent survey on net-zero buildings as a service offerings

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