Climate change is an immediate risk, not a future risk. To stay on a 1.5°C pathway, rapid emissions reductions are necessary.
Our product portfolio delivers the solutions necessary for decarbonization and accelerating the transition to a low-carbon economy. We empower our customers to save energy, reduce costs, and thereby boost competitiveness. We are actively building a product portfolio that maximizes energy efficiency and cost savings and helps our customers accelerate their decarbonization journey.
In decarbonizing our own operations globally, we apply the same approach that we bring to our customers.
We pioneer solutions that drive competitive decarbonization — innovating to do more with less.
We enable decarbonization through our product portfolio of more efficient and lower-emitting solutions. With the broadest and strongest portfolio in the industry, our expert teams work closely with customers to optimize solutions and set new standards in efficiency, performance, sustainability, and reliability.
Our decarbonization targets
To drive our performance, we commit to ambitious targets. Our decarbonization approach is supported by science-based targets, covering near-term, long-term, and also net-zero.
In 2025, we reconfirmed our commitment to driving competitive decarbonization and updated our scope 1, 2, and 3 targets, all approved by the Science Based Targets initiative (SBTi).
Near-term targets
- Reduce absolute scope 1 and 2 GHG emissions 90% by 2035 from a 2024 base year.*
- Reduce scope 3 GHG emissions 66.33% per EUR value added within the same timeframe.
- Reduce scope 3 GHG emissions from the use of sold products 66.33% per ton of refrigeration from sold compressors within the same timeframe.
Long-term targets
- Maintain a minimum 90% absolute scope 1 and 2 GHG emissions reduction from 2035 through 2050 from a 2024 base year.
- Reduce scope 3 GHG emissions 97% per EUR value added by 2050 from a 2024 base year.
- Achieve net-zero greenhouse gas emissions across the value chain by 2050.
* The target boundary includes land-related emissions and removals from biogenic feedstocks.
With our updated science-based target covering scope 1 and 2 emissions, we aim to achieve a 90% absolute reduction by 2035 from a 2024 base year. Our ambition is to reach this 90% reduction compared to our 2019 base year, already by 2030.
Climate Group initiative targets
Danfoss has been a proud triple joiner of the Climate Group flagship initiatives since 2020.
- Through the Smart Energy coalition, we commit to doubling our economic output from every unit of energy consumed by 2030, compared to 2007.
- From 2030 in advanced markets and from 2035 in all other markets, we commit to purchasing only zero-emission light-duty vehicles. We will also transition our heavy-duty fleet to zero-emission vehicles and commit to only procuring zero-emission vehicles from 2040 (EV100).
- Lastly, we commit to using 100% renewable electricity across our operations by 2030 (RE100).
Climate Group is an international non-profit organization focused on accelerating climate action. Through global networks of businesses and governments, it drives collective solutions that speed the transition to net-zero systems across energy, transport, industry, and food.
First Movers Coalition target
Our decarbonization approach is also supported by our First Movers Coalition (FMC) commitment to transitioning to green aluminum.
We commit to purchasing at least 10% (by volume) low-carbon primary aluminum by 2030 and to ensuring that at least half of the total mass of all aluminum procured per year will be from secondary aluminum by 2030.
The FMC is a global coalition of companies leveraging their purchasing power to decarbonize the world’s heavy-emitting industrial sectors responsible for 30% of global emissions. The mission of the FMC is to advance the most critical emerging climate technologies required for deep decarbonization of the world’s heavy-emitting sectors.
Achieving net-zero
In decarbonizing our operations, we focus primarily on actual emissions reductions, with only a limited use of credits and offsets. To reach net-zero, we will rely on permanent carbon removal solutions for residual, hard-to-abate emissions that cannot be eliminated, in line with the SBTi Corporate Net-Zero Standard.
Target-setting methodology
Our targets are based on a screening of our activities and do not exclude any mandatory emissions categories as per the guidance of the Science Based Targets initiative (SBTi). In setting out targets, we align with the standards and recommendations provided by the SBTi and with the Paris Agreement’s goal of limiting global warming to 1.5°C.
In competitive decarbonization, sequence matters
To decarbonize in a competitive way, we must take steps in the right order. Our stepwise approach — Reduce, Reuse, Re-source — presents a viable, replicable, and cost-efficient pathway to industrial decarbonization. This approach applies to even the most hard-to-abate sectors.
Applying the three principles — Reduce, Reuse, Re-source — our competitive decarbonization approach presents a significant source of future growth for our customers and partners.
- Step 1: To decarbonize, we reduce energy waste by scaling energy-efficient technologies and increasing machine productivity.
- Step 2: Secondly, we reuse energy through energy recovery and sector coupling.
- Step 3: Thirdly, we re-source green energy by replacing fossil fuels with renewable energy sources. Through electrification, we can lower emissions and become more efficient, enabling a future energy grid powered by renewables.
Securing renewable energy
With more than 80% of energy-related emissions coming from electricity, sourcing electricity from renewable and carbon-neutral sources is a key priority.
We are committed to purchasing 100% renewable electricity by 2030. We prioritize power purchase agreements (PPAs) that contribute to the transition to more sustainable electricity grids and reinforce our long-term commitment to renewable energy. By purchasing green electricity where available, we can make the fastest and most significant contribution to climate action.
Carbon-neutral operations
Applying our approach to competitive decarbonization, we are decarbonizing Danfoss. In addition to our carbon-neutral headquarters in Nordborg, Denmark, we have decarbonized 14 of our factories across the Americas, Europe, and Asia. Our decarbonized sites are run on a minimum of 90% renewable energy with a maximum of 10% offset.
Annual Report 2025
Explore our integrated annual report for a holistic view of our financial and sustainability performance and progress, strategy, and governance.
Updates from Danfoss
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