Responding to the growing demand for environmentally responsible real estate practices from both clients and employees, CB Richard Ellis Group Inc. (NYSE:CBG) said it plans to become carbon neutral as a company by 2010 and promote a variety of energy efficiency programs to owners and tenants of the 1.7 billion square feet of building space it manages worldwide.

According to CB Richard Ellis, it is the first of the major commercial real estate services firms to announce plans to go carbon-neutral, that is, operate in such a way as to not add to the greenhouse gases in the atmosphere.

The world's largest commercial real estate services provider plans to reach the goal through a combination of energy savings, more efficient space utilization, carbon emission reductions and the purchase of carbon offsets.

"Our clients are driving toward energy savings and solid, sustainable environmental performance," said Brett White, president and CEO of CB Richard Ellis, in a conference call announcing the new initiative. "We see a great opportunity to partner with them to improve their operational performance and help protect the climate at the same time."

CBRE's decision to slash its carbon emissions is similar in scope to an initiative last year by Wal-Mart that pushed its consumers and suppliers toward waste reduction and increased energy efficiency, through programs such as the sale of compact fluorescent bulbs, said Brenna Walraven, the incoming chairman of the Building Owners and Managers Association (BOMA) and executive managing director of property management for San Antonio, TX-based USAA Real Estate, the EPA Energy Star partner that owns or manages of 35 million square feet.

"They have the resources and the opportunity to do it, and I certainly hope they will," said Walraven, adding that the initiative's success would be "a huge statement from the industry."

CBRE is working closely in its energy management advisory initiative with the Natural Resources Defense Council (NRDC), a nonprofit advocacy group for public health and the environment. Energy use in buildings is responsible for 40% if U.S. global warming emissions, according to NRDC.

"The buildings where we live and work every day hold huge potential for reducing energy use and emissions," NRDC President Frances Beinecke noted. "Improving the performance of existing buildings as well as new ones is going to be an important part of any effective global warming strategy. When the largest manager of commercial property in the world takes up a challenge like this, it can have a tremendous impact."

White estimated that the company's current CO2 emissions are between 75,000 and 100,000 tons per year. The costs associated with eliminating carbon emissions from its occupied space are difficult to determine, he added, although initial estimates are in the mid six-figure to low seven-figure range. He expects those costs will be defrayed by long-term savings in energy costs, as well as employee recruiting, retention and productivity benefits.

"A green working environment has proven time and again to improve employee morale and boost productivity," White said in a statement. "We want to demonstrate the benefits of going green."

CB Richard Ellis recently registered its new Washington, D.C. office with the U.S. Green Building Council's LEED for Commercial Interiors program, and expects to receive Gold status, the program's second-highest level. The 64,600-square-foot office is in the Victor Bldg., a 345,000-square-foot property owned by Brookfield Properties in the District's East End.

"In addition to dramatically reducing greenhouse emissions, LEED certified buildings substantially improve the health and productivity of their occupants," added Rick Fedrizzi, president, CEO and Founding Chair of the U.S. Green Building Council. "By walking the walk with their space in Washington, D.C., CB Richard Ellis will showcase how easy it is to realize the benefits of green buildings."

CB Richard Ellis said it was advised in the development of its environmental policy and the relationship with NRDC by Sustainable Finance Ltd., a leading advisor to the financial community on environmental issues.

CBRE joins a growing list of leading CRE firms that have been championing the "Green" cause and offering comprehensive energy management solutions to their tenant and building owner clients, including Jones Lang LaSalle, USAA and Transwestern, each of which has earned multiple Energy Star Partner of the Year awards for energy management and sustainability.