Benzinga | Aug 12, 2021 07:15AM EDT

Johnson Controls And Apollo Infrastructure Join Forces To Pursue Innovative Sustainability And Energy Efficiency Services For Commercial Buildings

Johnson Controls (NYSE:JCI), the global leader for smart, healthy and sustainable buildings, and funds managed by affiliates of Apollo Global Management, Inc. (NYSE:APO), a leading global alternative asset manager, today announced a strategic partnership providing sustainability and energy efficiency services to help customers address decarbonization and operating cost goals for their buildings.

New venture combines Apollo's strategic capital with Johnson Controls' cutting edge OpenBlue services

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 sustainability services will leverage Johnson Controls' decades of experience in energy efficiency performance contracting, along with its OpenBlue smart buildings technology and services, including the recently launched OpenBlue Net Zero Buildings as a Service. Apollo brings its infrastructure expertise and fund capital to offer customers flexible solutions to meet their 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. 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."

The venture targets a range of efficiency offerings tailored to schools, campuses, data centers, healthcare facilities as well as commercial and industry facilities, as more customers look to meet environmental standards to combat climate change and reach their carbon neutrality goals. The partnership provides a new strategic option for addressing the North American segment of the estimated $240 billion global market1 for decarbonization retrofit and services over the next decade.

"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 CFO 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."

To download Johnson Controls recent survey on Net Zero buildings as a service offerings, visit: https://www.johnsoncontrols.com/insights/2021/thought-leadership/open-blue-net-zero-buildings-pulse-survey

To read more about Johnson Controls POV on why companies benefit from a single strategy for sustainability and digitalization, visit: https://www.johnsoncontrols.com/insights/2021/white-paper/the-case-for-unifying-sustainability-and-digitalization-strategies