Decarbonization based on science
We want to become the preferred partner in helping our customers decarbonize, and we’ve built a strong foundation for achieving our own targets.
In January 2020, we took a significant step toward contributing to the goals of the Paris Agreement by committing to set science-based target.
Our emission reduction targets have been validated and approved by the Science Based Targets initiative in June 2022.
Danfoss commits to:
Reduce absolute scope 1 and 2 GHG emissions by at least 46.2% by 2030 from a 2019 base year. This covers emissions produced as a direct result of our activities at our sites, the use of our vehicles, and indirect emissions from the use of purchased electricity, heating, and cooling.
Reduce absolute scope 3 GHG emissions by 15% by 2030 from a 2019 base year. These emissions are generated across our value chain and come from our upstream and downstream processes, e.g., purchased materials, business travel, transport of goods, and emissions from customers’ use of our products.
Our emissions baseline
In 2021, we focused on mapping the carbon footprint of our value chain as a part of our baseline estimation process. This was followed by the process of setting science-based targets and submitting them for validation by the SBTi end of 2021.
The detailed emission screening has shown that the major contributor to our value chain emissions is the customers’ use of our products. The category “Use of Sold Products” makes up 98% of our total emission baseline. In 2021, we identified levers and mitigation activities for the reduction of GHG emissions in our value chain.
We recognize that energy is required for our products to operate. At the same time, Danfoss solutions are best in class in improving energy efficiency, and they help mitigate greenhouse gas emissions during their use. In 2022, we will set up a solid methodology and start quantifying emissions that our products enable to save.
The Science Based Targets initiative (SBTi)
The SBTi supports companies in setting emission-reduction targets required to keep temperature increase below 2°C compared to pre-industrial temperatures.
The SBTi is a collaboration between the Carbon Disclosure Project (CDP), the United Nations Global Compact (UNGC), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
The initiative’s overall aim is for businesses and corporations worldwide to use science-based targets as a fundamental component in their approach to sustainability.