Our impact and contribution towards mitigating climate change are two-fold – through the solutions we sell and through the way we run our business.
We have one of the world’s strongest portfolios of components crucial to decarbonizing the three most emission-heavy sectors in the world - industry, transport, and buildings.
Therefore, we have a responsibility and a unique opportunity to help enable the green transition.
Through strong partnerships and bold investments, we engineer solutions that help the world use energy in smarter, more efficient ways.
As a responsible business, we apply high standards and set stretch targets across climate, people, and environmental agendas and ensure proper internal policies and practices.
By delivering the solutions needed to decarbonize the industries we serve as the core of our business, we can have a sustained and systemic impact. This is why we have committed to our sustainability step-change initiatives to achieve our long-term success and to be the preferred partner for our customers.
Our step-change initiatives
We pioneer solutions for customers to enable decarbonization in an intelligent, cost-optimal manner and decarbonize our own operations.
Click here to read about our ambitious targets.
We invest in circularity to take responsibility for our environmental impact and strengthen our competitiveness.
Click here to read about our circular approach.
We are committed to fostering a culture where everyone feels safe, respected, and empowered to perform at their highest potential.
Click here to read about our culture and workplace.
Sustainability governance
Sustainability governance is an integrated part of Danfoss Group governance, which enables us to drive our sustainability transformation and ensure that we deliver on our ambitions.
Board of Directors/Audit Committee
Approves the sustainability strategy and the annual report. Sustainability performance is part of the reporting to the Board of Directors.
Group Executive Team
Accountable for the sustainability strategy and targets. The Group Executive Team follows up regularly on progress, strategy, and targets throughout the year.
Sustainability Leadership Team
Responsible for the preparation of the Danfoss sustainability strategy and target setting. Progress on sustainability topics is addressed at monthly meetings.
Danfoss Segments
Responsible for strategy execution and reporting of sustainability performance within business areas.
Cross-functional working groups
Responsible for driving implementation of identified sustainability projects, supporting the overall Danfoss strategy, and reporting to the Sustainability Leadership Team on a monthly basis.
Double Materiality Assessment
In 2021, Danfoss conducted a double materiality assessment to identify the most significant impacts, risks, and opportunities to our business and stakeholders. These insights served as the foundation of our step-change initiatives: decarbonization, circularity, and inclusion.
In 2024, we updated our double materiality assessment and in 2025, we revisited the assessment and revised our conclusions from the previous year.
The outcome of the assessment informs our strategic decision-making. It highlights where we have the most significant impact on people and the environment — and where we may be exposed to material financial risks or commercial opportunities.
The DMA process is overseen by our Sustainability Leadership Team, and its outcome is approved by both the Sustainability Leadership Team and the Group Executive Team.
An overview of our material topics can be found here.
Stakeholder engagement
At Danfoss, the interests and views of our stakeholders inform our business strategy and guide our actions. Through our approach, we aim to better understand the interests and views of key stakeholder groups across our value chain.
As a global business, we engage with various stakeholder groups across our value chain. Our methods of engagement depend on the stakeholders involved and the objective of the engagement.
Our approach is guided by the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and the UN Guiding Principles on Business and Human Rights.
To promote knowledge exchange, we have been an active member of the UN Global Compact since 2002.
Employees
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Customers
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Suppliers
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Investors and financial institutions
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Policymakers, regulators, and associations
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Industry and sustainability associations
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Our impact on the Sustainable Development Goals
With sustainability at the core of our business, we continue to support and contribute to the United Nations Sustainable Development Goals.
Our impact on the SDGs is two-fold. We are meeting many of the world's climate, urbanization, and food challenges with proven and reliable solutions. Driven by the power of an electrified society, and fueled by the opportunities of going digital, Danfoss is dedicated to engineering solutions that can unleash the potential of tomorrow.
We also see our contribution to the Sustainable Development Goals through our business activities and the effort of aligning our business practices with current environmental and societal challenges.
For Danfoss, as a leader in technology and innovation, the SDGs create good business opportunities and generate space to make a positive impact in the societies around us.
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
Stay up to date with recent information from Danfoss, get inspiring content on our sustainable solutions and climate action. Read successful case stories from our customers and explore how we help lead the sustainable transformation to limit climate change.