Science Based Targets initiative approves Danfoss climate targets

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August 2023 News

The Science Based Targets initiative (SBTi) has validated that the corporate greenhouse gas (GHG) emissions reduction targets submitted by Danfoss are in conformance with the SBTi Criteria and Recommendations (version 4.2). The science-based target provides a clearly defined pathway for companies to reduce GHG emissions in line with the goals of the Paris Agreement and help to prevent the worst impacts of climate change.

The SBTi’s Target Validation Team has determined that Danfoss’ scope 1 and 2 target ambition is in line with limiting warming to 1,5°C. As part of the science-based target, Danfoss will reduce absolute scope 1 and 2 GHG emissions by at least 46,2% by 2030 from a 2019 base year. In addition, Danfoss has committed to being carbon neutral in scope 1 and 2 emissions by 2030. Danfoss will reduce absolute scope 3 GHG emissions by 15% in the same time frame.

President and CEO Kim Fausing said: “We have built a strong foundation to achieve our science-based target, an important pillar of Danfoss’ new 2030 ESG ambition. Our science-based target expands our GHG emissions reduction goals beyond our own business, across the entire value chain. It reflects our continued dedication to taking action on climate change and becoming the preferred decarbonisation partner to our suppliers and customers.”

Danfoss announced in March 2022 that it had reached its 2030 target of doubling the energy productivity in its factories globally – nine years ahead of time. Energy productivity improved by 104% in 2021 from the baseline year 2007, and energy intensity was halved between 2007 and 2021. Danfoss produced twice the output in 2021 as in 2007, with the same energy consumption. Subsequently, Danfoss has said it would put sustainability at the centre of its Core & Clear 2025 strategy, and has the ambition to take leading positions within Decarbonisation, Circularity, Diversity and Inclusion.

Martin Rossen, SVP and head of Group Communication & Sustainability has been responsible for developing Danfoss’ ESG strategy and setting the ambition for reducing emissions across the business. He added: “The validation of our science-based target confirms that Danfoss’ climate ambitions are in line with science and the goals of the Paris Agreement. But it’s more than order in our own house. Customers, employees and the public increasingly demand transparency and reward action on ESG − for good reason. Companies can’t simply get away with saying that they act; they need to document it. The science-based target provides a level playing field. It gives a competitive edge to the companies that truly care and take action. United Nations Secretary-General Kofi Annan once said ‘who cares wins’, and we believe that companies that care will win.”

Danfoss is on track to making its 250 000 m² headquarters in Nordborg, near the city of Sønderborg, carbon neutral in scope 1 and 2 in 2023, by implementing available energy efficiency solutions and sourcing renewable electricity and heating.

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Science Based Targets initiative approves Danfoss climate targets

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