Danish Hydraulics Specialist Danfoss 'Growing Sustainably'

As Danish industrial hydraulics multinational Danfoss releases its annual report for 2023, we profile the company whose technology construction relies on

Danfoss was founded in 1933 by Mads Clausen of Nordborg, Denmark. Initially, it manufactured mechanical thermostatic radiator valves, but over the years expanded its product range and became a global leader in energy-efficient solutions.

Danfoss fluid-conveyance solutions are integral in the construction industry, because this keeps heavy machinery and construction equipment operational. 

The heaviest challenges in the construction industry – cutting through rock, compacting thick layers of hot asphalt, lifting huge, prefabricated wall panels into place – places colossal power demands on the machines that perform such work. 

Everything about heavy-duty excavators, dumpers, loaders and cranes is high capacity, which means high fuel-consumption. This is why energy-efficient hydraulic components and systems are so important, especially as the construction sector is desperate to reduce its greenhouse gas emissions. (Currently construction accounts for a massive 40% of global GHG emissions.)

Danfoss decarbonising plans

In terms of its own sustainability plans, Danfoss plans to decarbonise its operations by 2030, and has agreements in place that ensure a 30% reduction in emissions. These include two long-term power purchase agreements in China and North America, effective from 2024 and 2025, respectively. In 2023, it continued to decarbonise its own operations. Scope 1 and 2 emissions decreased by 18% (before acquisitions), decoupled from organic sales growth of 2%.

Scope 1 covers emissions from burning fuel in a fleet of vehicles, whereas Scope 2 are emissions a company causes indirectly, when the energy it purchases and uses is produced. Energy for an electric fleet of vehicles, for example. 

With its 2023 results, as laid out in its annual report, Danfoss said it has “continued with bold investments in our green growth strategy, Core & Clear 2025”.  Itr launched Core & Clear in April 2022, with the aim of sustainably strengthening its three business segments.

Kim Fausing, President & CEO of Danfoss, says: “We are entering a new era where the future energy system is electric, and improving energy efficiency in machines, infrastructure, and industry is critical to delivering an affordable, secure, and decarbonised future. 

“In 2023, we continued with bold investments in expanding our offering of competitive and innovative solutions for our core business. I am excited to see how our global teams continue to implement our green growth strategy.”

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