ESG Roadmap will Guide Danfoss Through 2030

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In April 2022, Danfoss announced its ESG (Environmental, Social, Governance) goals that will guide the company through 2030. The largest sustainability project in company history began with an assessment and examination of company goals and priorities, resulting in a roadmap and official launch. Recognizing industry and societal trends toward sustainability, Danfoss seeks to build on its leadership in decarbonization, energy efficiency and creating long-term value for the company and its customers.

“ESG spells opportunities, especially for a company like Danfoss,” said Kim Fausing, Danfoss CEO. ”We want to live and breathe the values that the ESG themes represent to ensure they are reflected in all decisions and processes. This will position Danfoss an attractive employer and a competitive and preferred partner for our customers.”


With customers increasingly looking to Danfoss to help them fulfill their ESG ambitions, Danfoss is committed to becoming its customers’ preferred decarbonization partner as well as achieving its own carbon reduction goals. Danfoss has already committed to becoming carbon-neutral in global operations by 2030 and is on track. Since 2007, the company has reduced carbon intensity by 42% and energy intensity by 51%. In 2020, Danfoss adopted science-based targets aligned to the Paris Agreement goals of limiting global warming to 1.5 degrees below pre-industrial levels. The company has pledged to reduce its operational emissions by 46% before 2030 from the 2019 baseline by sourcing green electricity through power purchase agreements, converting the company car fleet to electric vehicles and reducing overall energy consumption. Its corporate headquarters in Nordborg, Denmark expects to be carbon-neutral by the end of 2022, with other facilities to follow in the coming years.

The company has also pledged to reduce carbon emissions from the company’s value chain by 15%, compared to the 2019 baseline, by 2030. With customer use of products contributing 98% of value chain emissions, Danfoss will continue to develop solutions that enable customers to reduce emissions. The company will also develop and implement a circularity framework in all business segments, with the goal of reusing and recycling materials across the entire value chain. Products will be designed with sustainable end-of-life in mind.


Attracting and retaining exceptional talent will be essential to creating value for both Danfoss and its customers. Diversity and inclusion is a key component of the company’s social impact initiatives. Recruiting and retaining diverse talent by improving hiring practices, training and mentoring and establishing Employee Resource Groups for employees with shared identity, experiences and interests, is central to Danfoss’ mission. Danfoss has also committed to increasing women in leadership roles from 20% in 2019 to 30% by 2025.

Also core to Danfoss’ social impact goals is employee safety. The company made good progress in 2021, reducing Lost Time Injury Frequency (LTIF) to 1.7 from 2.0 in 2020, and achieving a 45% decrease in days lost due to serious injuries. Through machine safety inspections, ergonomic assessments and safety leadership training, Danfoss hopes to see even more progress in 2022.


Danfoss is committed to supporting human rights and ethical business practices through transparency, accountability and reporting. Through mandatory ethics training, a hotline for whistleblowing staffed by an external vendor and responsible procurement practices, the company takes an active stand against corruption and human rights abuses. All companies doing business on Danfoss’ behalf must sign an anti-corruption agreement, requiring compliance with bribery and anti-corruption laws. Regular audits are conducted to ensure suppliers are adhering to Danfoss ethics requirements.

“ESGs are critical to our future competitiveness,” said John Galyen, president of Danfoss North America. “Our customers look to us for innovation and leadership in sustainable solutions. These targets will enable us to drive future growth and long-term value creation for Danfoss and our customers.”

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