Decarbonization

We pioneer solutions for customers to enable decarbonization in an intelligent, cost-optimal manner and ensure carbon neutrality in our own operations.

We take leadership in reducing value chain emissions, including “purchased goods & services” and “use of sold products”.

Our decarbonization targets for 2030:

Energy productivity improvement

Energy efficiency is core

Energy efficiency has massive potential. Improving energy efficiency means that the overall energy demand is reduced and that the remaining energy needs are covered in a more efficient way. An “energy efficiency first” principle is instrumental in helping us reach our goal to become carbon-neutral in our global operations by 2030.

In 2021, we continued further reducing energy consumption in our buildings and processes to achieve our target to double our energy productivity and halve our energy intensity by 2030, compared to the 2007 base year. And we achieved both targets – nine years ahead of time.

Energy productivity was improved by 104% in 2021 from the baseline year 2007. In 2021, our energy intensity was 51% lower than in 2007. This means that we today produce twice the output as in 2007 with the same energy consumption.

Wind turbines in field with proofstamp - 25% energy from wind

Our journey towards carbon neutrality

We will reach our goal by continuing to prioritize energy efficiency in buildings and processes, and especially by using our own solutions. With more than 90% of energy-related emissions coming from electricity, our next priority is to decrease energy consumption from electricity use.   

Since January 2021, Danfoss uses carbon-neutral electricity for all our locations in Denmark and Germany through our first Power Purchase Agreement (PPA). The agreement is an important step towards carbon neutrality by 2030.

We have a three-step approach to reducing our energy consumption and decarbonizing our operations. First, we REDUCE the consumption; then we RE-USE the energy, we already used once, finally, we RE-SOURCE by replacing fossil energy sources with renewables.

Carbon-neutral Headquarters

Our headquarters, the largest production facility that covers more than 250,000 m², will be carbon-neutral in 2022. We have been working toward this goal for the last few years, and Danfoss’ own solutions have been instrumental every bit of the way, creating massive energy savings.

In 2021 our green initiatives resulted in 100% green electricity sourced for the campus. In 2022, 85% of its heating demand is now covered by green energy from carbon-neutral district energy, utilization of excess heat, and from heat pumps. The district energy comes from a municipal district-heating facility next to the campus. The municipality does not buy wood or other biomass that needs to be transported over long distances, but sources excess straw from local farmers’ fields.

To heat our offices and production areas, we reuse excess heat from our manufacturing processes and from a data center next to the campus – our own solutions – in addition to installing heat pumps and electric boilers. Applying our own solutions, together with our green initiatives, resulted in an 80% cut in emissions in 2021.

Charging electrical vehicle

Electric company cars

The electrification of our company car fleet is an important part of our goal to become carbon-neutral by 2030. In 2020, Danfoss joined EV100, an initiative under The Climate Group to support the global transition to electric vehicles by transforming our car fleet to all-electric by 2030.

In 2021, our car fleet emitted 8 kt of CO2. To eliminate these emissions, we are replacing our fossil-fuel-based cars with electric vehicles, including plug-in hybrids. We now have around 100 electric and hybrid company cars on the roads in 10 countries. We are also installing charging points at our largest sites and facilitating their installation at employees’ homes for those who have electric vehicles.

In 2021, we completed the installation of 184 charging points at our facilities. We expect more locations to follow in 2022 with the accelerated speed and pace, especially in European markets.

Report 2021 cover

Annual report 2021

For the financial year 2021, we are taking a new step in our reporting by combining financial, sustainability, and corporate governance in a single publication. This gives our stakeholders a holistic view of Danfoss’ business, value drivers, strategy, governance, and performance.

We joined the Climate Group business initiatives

In 2020, Danfoss joined, as the first global technology company, all three business initiatives by The Climate Group to send a strong signal to our business partners that we deliver on our climate ambition.

The Climate Group is an international non-profit organization working towards a world with net-zero emissions by 2050.

They build networks of governments and businesses that can commit to three sustainability pledges on sourcing 100% renewable energy (RE100), improving energy productivity (EP100) and shifting their fleets to electric vehicles by 2030 (EV100).