We invest in circularity to take responsibility for our environmental impact and strengthen our competitiveness
As one of our three sustainability step-change initiatives, our circularity agenda plays a key role in our approach to sustainable innovation. We actively work on improving the circular design of our products and increasing the share of recycled materials in them, while also investing in the development of circular services to deliver competitive and value-adding solutions.
The Sustainability Strategies Wheel
Our circularity approach centers around three principles — Rethink, Reduce, and Recirculate. These principles are operationalized through strategies that guide our actions to develop and improve our existing product portfolio and new product development.
- Rethink encourages a shift in how products and services are designed, delivered, and experienced. This includes reassessing Design for X strategies — such as designing for disassembly, durability, and upgradability — to extend product life and reduce environmental impact.
- Reduce focuses on minimizing environmental impact during the manufacturing and delivery of our products. This includes design and sourcing strategies to reduce the use of virgin materials and energy, and initiatives to reduce waste.
- Recirculate addresses end-of-life strategies through reuse, repair, and remanufacturing strategies, as well as recovering materials through recycling.
Danfoss Circularity Toolbox
The Danfoss Circularity Framework and approach are supported by a toolbox. The toolbox includes:
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Sustainable Design Guide: operationalizes the Danfoss Circularity Framework, providing guidelines and practical examples for implementation. Our overarching Sustainable Design Guide methodology identifies 10 sustainability strategies for new product development and 30 guidelines providing practical advice and tips for implementation. The Guide is built on our Rethink-Reduce-Recirculate framework. This Guide forms the basis for our work with sustainable product design as well as our qualitative RE:CIRC tool.
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Danfoss RE:CIRC tool: assesses the sustainability of a product, supporting our R&D teams to identify high-impact design improvements. Our internal sustainable design assessment tool is based on our Sustainable Design Guide. It assesses the sustainability of a product and supports our teams to identify high-impact improvement areas during new product development going forward. All teams are required to apply the RE:CIRC tool at least once during new product development and ensure improvement.
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Green Materials Guide: provides practical guidance circularity and carbon data on materials and applications to inform our materials choices. Practical guidance on carbon footprint and circularity potential of materials, informing our choice of materials in the new product development, and underpinning our Sustainable Design Guide.
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Carbon footprint tool: calculates the lifecycle carbon footprint of potential products. We apply our LCA methodology to establish a carbon footprint in the innovation phase. All teams are required to calculate carbon footprint once during new product development and ensure improvement.
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Circularity Index tool: measures the circularity potential of products. We measure the circularity potential of products based on materials used. All teams are required to perform this assessment at least once during new product development and ensure improvement.
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Sustainable Packaging tool: assesses the sustainability of packaging options. We assess packaging options based on 9 sustainability criteria, for use when selecting packaging options during new product development. This informs teams to make packaging decisions on an informed basis.
New Danfoss Sustainability Paper - Circularity in action
Circularity in action: A framework for sustainability in product innovation. Issue No. 2 of our Danfoss Sustainability Paper series is available now.
Download now
Danfoss Sustainability Paper No. 1 - Reduce, Reuse, Re-source
Reduce, Reuse, Re-source: An intelligent and cost-efficient decarbonization approach. Issue No. 1 of our Danfoss Sustainability Paper series is available now.
Download now
Collaborating for circularity
The transition to a circular economy requires a holistic approach. We work across our value chain to build strong partnerships with suppliers, customers, and other business stakeholders. We actively engage in the Circular Design Forum (CDF), where we exchange knowledge and insights on circular practices with industry peers. We also participate in the Circular Leaders Group, an initiative led by the Ellen MacArthur Foundation. Through these collaborations, we identify opportunities where joint action can drive meaningful, scalable impact.
Collaboration with customers
Danfoss is committed to creating value throughout the entire lifecycle of our products. Across our three business segments, and together with our customers and partners, we are exploring the development of take-back solutions and service models that extend product life and promote circular material flows.
With dedicated teams and established refurbishment lines, we are scaling up our circular service offerings to support more sustainable operations across industries while driving competitiveness. Building more efficient refurbishment processes allows us to offer more efficient and cost-competitive solutions to our customers.
