Science-based target

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 May 2022.

Danfoss’ SBT commitment

Danfoss commits to reduce absolute scope 1 and 2 GHG emissions 46.2% by 2030 from a 2019 base year. Danfoss also commits to reduce absolute scope 3 GHG emissions 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.

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.

Our emissions

  2019 2020 2021
Scope 1 55.7 48.0 45.1
Scope 2 246.3 225.8 219.7
Scope 3 66,820 Not disclosed
due to insufficient data.
- Use of sold products 65,501 75,613
- Rest of scope 3 1,319 2,198

 * emissions measured in kiloton (kt)

The scope 1 and 2 reductions are achieved through energy efficiency projects and optimization of buildings and processes.

The increase in scope 3 emissions is primarily due to increased business activity (sale increased by 20% from 2019 to 2021). The identified levers and mitigation activities for the reduction of GHG emissions in our value chain have not yet been fully activated and the effect is expected to be visible in the following years.

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.

Read more about the Science-based target initiative