Decarbonization

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

We have committed to ambitious targets covering our operations, suppliers, and customers with a focus on reducing value chain emissions, including "purchased goods and services" and "use of sold products."

Our decarbonization targets:

• Approved Science-based targets validated by SBTi to limit global warming to 1.5°C
• Global carbon neutral Danfoss operations by 2030 (scope 1 & 2) 
• 15% reduction of value chain emissions by 2030 (scope 3)
• Make the reduction of customers’ emissions core to Danfoss’ value proposition

Danfoss’ SBT commitment

Danfoss commits to reduce 46.2 % of absolute scope 1 and 2 GHG emissions by 2030 from a 2019 base year. Danfoss also commits to reduce absolute scope 3 GHG emissions by 15% within the same timeframe.

We furthermore commit to reduce our scope 1 and 2 GHG emissions to zero by 2030 through energy efficiency measures, re-use of excess heat from processes and buildings, sourcing of renewable energy and only use offsetting as a last resort.

We commit to reduce scope 3 GHG emissions from purchased goods and services by 25% by 2030 from a 2019 base year.

Carbon-neutral headquarters

For several years, Danfoss has systematically worked to reduce and recycle energy at the head office in Nordborg, Denmark. Now the 250,000 square meters are CO2 neutral. The goal has been achieved through a method that will also be used to lower emissions in Danfoss' other buildings and production sites around the world. 
The first two steps are to reduce the energy consumption and then re-use or recycle as much energy as possible. The third step is to ensure that the site is supplied with green and renewable energy. Thus, Danfoss' electricity comes from offshore wind turbines at Horns Rev II via a so-called Power Purchase Agreement (PPA).

As a last resort, climate compensation is done for the last emissions that cannot be removed in any other way. The residual emissions that may remain after reductions and conversion to green forms of energy are compensated by carbon offsetting and removals through Climate Vault.

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 2022, we increased capacity of on-site charging stations by 50%, and the expansion of charging infrastructure will continue in the coming years to offer employees and customers charging points for their electric vehicles. We have established charging infrastructure at 25% of our locations and expect to replace more than 300 electric vehicles of 2,000 cars in our company car fleet with electric vehicles in 2023.

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).
 

Annual report 2022

Our integrated annual report gives our stakeholders a holistic view of Danfoss’ business, value drivers, strategy, governance, and performance. It combines key information on our financial, sustainability and ESG-related performance.