Atlantic Equity Partners launched a new fund aimed at acquiring and sustainably redeveloping hospitality real estate, the company announced Wednesday.

The company plans to source properties in desirable markets and buy them at a discount, according to a press release. It will then upgrade and decarbonize the properties to take advantage of growing consumer demand for businesses with sustainable practices.

The new fund already has $25M in capital committed to its venture and is aiming to raise $150M or more from global partners.

“The climate crisis requires an urgent response from investors, and addressing carbon in all types of man-made structures and settings will be essential to move the needle on climate goals that protect people and planet,” Atlantic Equity Partners Managing Partner and CEO Jonathan Hoenig said in the press release. “These dynamics offer investors a unique opportunity to achieve both attractive returns and meaningful, positive impact.”

The company plans to retrofit properties with electrified systems and implement on-site renewable energy generation. This will reduce energy costs significantly and is supported by tax incentives, rebates and grants, according to the press release.

Real estate is responsible for 40% of global greenhouse gas emissions, and climate experts say it needs to cut back on its carbon output. But a Bisnow analysis of real estate’s 75 largest institutional investors, listed companies and investment managers from earlier this year found almost half have no overall plan to reduce the amount of carbon they put into the atmosphere.

Hoenig said in the release that there will be a “first mover advantage” for those who recognize the benefits of electrifying real estate operations.

“We are convinced that early change-makers in the decarbonization of built environment assets will benefit from growing demand among consumers and policy makers to address climate change,” Hoenig said. “Investors who are forward-thinking about the inevitable impact of future policy change, related to carbon reduction in real estate and business operations, stand to benefit greatly.”