Danfoss has published its 2026 Climate Transition Plan, setting out its approach to decarbonizing its operations by 2030 and achieving net-zero greenhouse gas emissions across the value chain by 2050. The plan was approved by the Danfoss Board of Directors and shareholders at the Annual General Meeting on April 22, 2026.
The company says it achieved its former SBTi-validated target to reduce scope 1 and 2 emissions by 46.2% by 2030 five years ahead of plan. In 2025, Danfoss reduced its own emissions by 33% compared with 2024 and by 51% since 2019.
The plan outlines Danfoss’ “Reduce, Reuse, Re-source” approach. The company says it reduces energy consumption and waste through energy-efficient technologies, reuses energy through recovery and sector coupling, and re-sources renewable energy while transitioning to more sustainable fuel sources.
Danfoss aims to reduce scope 1 and 2 emissions by 90% by 2035 from a 2024 base year, with an ambition to reach a 90% reduction compared with 2019 by 2030. It also targets a 66% reduction in scope 3 emissions intensity per gross profit by 2035 and a 66% reduction in scope 3 emissions intensity from the use of sold products per ton of refrigeration from its commercial compressors business.
The report says Danfoss Drives sells more than two million variable speed drives each year. Drives sold in 2025 are expected to enable approximately 19 million tons CO2e of avoided emissions over their lifetime. Danfoss also estimates future operational decarbonization investment until 2030 at more than EUR 50 million [approx. USD 54 million].
“At Danfoss, our purpose is clear: we engineer a better future. With sustainability at the core of our business, we drive competitiveness for Danfoss and for our customers,” said Thomas M. Auerbach, Chief Sustainability Officer & Head of Danfoss Finance Functions.
