Over 90% of global emissions are generated by buildings, transport, and industry [1]. Danfoss delivers one of the world’s strongest and most relevant portfolios of efficient components to these emission-heavy sectors. We engineer solutions that increase machine productivity, reduce emissions, lower energy consumption, and enable electrification. The solutions are available today to help accelerate sustainable transformation across these sectors.
Decarbonizing industry is key to achieving the goals of Paris Agreement. This is possible with a combination of energy efficiency, electrification, and sector integration.
Scaling up the electrification of transport is needed to lower emissions and air pollution. And the solutions are ready to be used.
The building sector presents an untapped opportunity to respond to the climate crisis. Enhancing energy efficiency – in old and new buildings alike – is the first step.
The industrial sector is vital to achieving and maintaining a sustainable society. Heavy industries account for the vast majority of industrial emissions, and just steel, cement, and chemicals for more than half of industrial energy use and 70% of industrial emissions [2]. However, there is ample opportunity here to ensure energy is used only when needed. This can be achieved with highly efficient technologies that already exist today, such as a variable speed drive (VSD). 35% of all motors in the EU can benefit from a variable speed drive, and with a full implementation, energy savings of 121 TWh could be achieved [3]—a saving equivalent to 10% of the EU’s 2030 energy efficiency goals. Additionally, if manufacturers were to install heat exchangers, they could produce more while using less – and even reuse energy by sending surplus heat back into the grid to warm our homes.
The transport sector is still reliant on fossil fuels, procuring nearly 91% of its energy from oil – a 3.5 percentage points decrease compared to the early 1970s [4]. But electrifying transport does not just mean switching to renewable energy; it also means increased energy efficiency.
For example, gas engines waste between 64% and 75% of the energy to convert power to movement, while the drive system of an electric vehicle reduces this loss to between 15% and 20% [5]. With heavy machinery and passenger ferries starting to go hybrid or fully electric, electrification is helping businesses achieve their green goals while lowering the total cost of ownership.
The world is on course to build the equivalent of New York City every month for the next 40 years [6]. For every new square meter built, greenhouse gases are emitted during construction as well as when a building is heated, cooled, or filled with white appliances and devices.
Today, buildings account for nearly 26% of the world’s energy-related emissions [7]. If we are to turn the tide, every square meter of new floor space needs to function using less energy. That means taking action anywhere we can. For example, by shifting a building’s energy consumption to the most economical period, digital flexibility solutions can ensure up to 20% savings in a building’s energy costs [8].
Danfoss is a global leader of components and solutions directly contributing to achieving global climate and energy ambitions, in alignment with the 2015 Paris Agreement’s 1.5°C goal and the UN Sustainable Development Goals (SDGs).
Danfoss engineers solutions that increase machine productivity, reduce emissions, lower energy consumption, and enable electrification. Our solutions are used in such areas as refrigeration, air conditioning, heating, power conversion, motor control, industrial machinery, marine, and on- and off-highway equipment.
We also provide solutions for renewable energy, such as solar and wind power, storage, heat recovery, as well as contribute to district energy solutions for cities.
In line with our strategic priorities, we support public policies that enable and encourage the adoption of sustainable solutions within these fields of application. To this end, we are actively engaged in relevant industry associations and other fora, where we provide formal comments and technical input during policy development to support climate action in alignment with the UN SDGs 6 (Clean water and sanitation), 7 (Affordable and clean energy), and 13 (Climate action).
As a member of the UN Global Compact since 2002, our commitment to responsible business practices is well established and aligned with our corporate values. We support scientifically sound and transparent public reporting of greenhouse gas (GHG) emissions and targets. Our emissions reduction target was validated by the Science Based Targets initiative (SBTi) in June 2022.
Danfoss’ Group Executive Team (GET) can approve membership of external organizations or other organizations which operate within the framework of existing agreements and commitments.
Memberships of industry and trade associations are systematically monitored by public affairs functions across Danfoss Group and within our business segments, ensuring regular alignment related to policies, emerging issues, and company positions. Based on these reviews, relevant policies are prioritized, assessed, and aligned with the positions of allied organizations, from NGOs to industry trade groups, both globally and regionally.
We strictly adhere to all laws and regulations governing corporate political activities. The laws of many countries prohibit or strictly limit contributions by corporations to political parties and candidates. Danfoss does not support individual political parties or the interests of any specific political parties.
Danfoss is registered with the European Commission and European Parliament’s Transparency Register (REG 02478294688-95) and conducts an annual review of this to ensure it adheres to the applicable code of conduct.
By increasing efficiency, electrifying, and integrating industrial processes with existing technologies, the EU can decarbonize industry while increasing economic growth, innovation, and energy independence.
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Our latest Impact paper provides a clear guide on how companies can strengthen their competitive advantage through decarbonization, electrification, and energy efficiency.
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Excess heat is a huge untapped energy source that can be captured and reused, accelerating the green transition.
Our roadmap for decarbonizing cities outlines the technologies available to meet global climate goals and accelerate the green transition.
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IEA (2022). Greenhouse Gas Emissions from Energy Data Explorer – Data Tools – IEA. Accessed 27 February 2025.
IEA (2020). Energy Technology Perspectives 2020.
Frauenhofer ICT (2023). Study on the energy-saving potential of electric motors with variable-speed drives in The European Union.
IEA (2022). Transport - Energy System - IEA. Accessed 27 February 2025
U.S. Department of Energy (n.d.). Where the Energy Goes: Electric Cars. Accessed 27 February 2025.
World Economic Forum (2024). Reducing Embodied Carbon in Cities | World Economic Forum. Accessed 27 February 2025
IEA (2023). Buildings - Energy System - IEA. Updated 11 July 2023. Accessed 27 February 2025.
Danfoss (2020). Optimize the indoor climate and cut down the costs. Published February 2020. Accessed 28 February 2025.