We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.
Climate Lobbying Overview Danfoss’ top-line messaging generally supports increased ambition in EU climate regulation. In 2021-23, the company appears strategically engaged with EU climate policy with primarily positive positioning, particularly related to energy efficiency legislation.
Top-line Messaging on Climate Policy Danfoss has communicated support for the goals of the Paris Agreement and contributing to global net zero CO2 emissions by 2050 in a joint letter signed by President and CEO Kim Fausing in November 2022. In its Energy Efficiency Directive Public Consultation response in February 2021, the company stated support for the European Green Deal as well as delivering a higher climate ambition (of at least a 55% reduction in net CO2 emissions) for 2030 to achieve the EU’s 2050 climate neutrality target. Additionally, the company has stated support for the Fit for 55 package in its March 2021 feedback on the revision of the Energy Performance of Buildings Directive. In 2021-23, the company also appeared generally supportive of the need for policy to address climate change. For example, in June 2021, President and CEO Kim Fausing signed a joint letter that called upon world leaders to “publish ambitious and 1.5C-aligned Nationally Determined Contributions that halve emissions by 2030” and “commit to net-zero by 2050”.
Engagement with Climate-Related Regulations Danfoss engaged with EU climate policy with mostly positive positioning in 2021-23, showing support for multiple EU policies including the Energy Performance of Buildings Directive (EPBD), Energy Efficiency Directive (EED), Renewable Energy Directive (RED).
In its March 2022 public consultation response, Danfoss appeared to advocate for ambition 1109891 of the Energy Performance of Buildings Directive (EPBD) by supporting Minimum Energy Performance Standards (MEPS), Energy Performance Certificate standards, Renovation passport schemes, Zero Emission Building (ZEB) and Technical Building Systems (TBS). Similarly, in its June 2021 EPBD public consultation response, the company supported mandatory milestones in the Long Term Renovation Strategies and appeared to call for the EPBD to support a district approach to ensure buildings become part of a truly integrated energy system. Danfoss also communicated support for more ambitious and binding targets in the Energy Efficiency Directive in its February 2021 Public Consultation response, calling for a higher 2030 target, the mandatory use of Energy Efficiency Obligation Schemes and the compulsory application of the Energy Efficiency First principle in legislative, investment and planning decisions.
Regarding the EU Emissions Trading System (EU ETS), Danfoss appeared to support its extension to include building, transport and maritime sectors in its June 2020 public consultation response to the EU 2030 Climate Target Plan. However, in its February 2021 EED Public Consultation response, Danfoss appeared only to support the EU ETS as part of a broader policy mix, stating the EU ETS should “never be considered as a replacement for existing or emerging high impact measures to boost energy efficiency.”
In its February 2021 public consultation response, the company advocated for more ambitious binding renewable energy targets for 2030 under the EU Renewable Energy Directive at both the EU and national level.
In March 2023, Danfoss signed a joint letter advocating for EU states to adopt a stringent EU zero-emissions 2035 CO2 target for cars and vans without an e-fuels loophole.
Positioning on Energy Transition Danfoss appeared supportive of an energy transition away from fossil fuels in 2021-23. In its 2030 Climate Target Plan consultation response in 2020, the company appeared to support a transition towards a renewables-based energy system. In a December 2021 joint letter to Members of European Parliament, Danfoss appeared to support the electrification of transportation, advocating for more ambitious EV charging targets under the Alternative Fuels Infrastructure Directive and more ambitious distance-based targets to deploy charging infrastructure along the EU’s Trans-European Transport Network (TEN-T). Danfoss also appeared supportive of the goals of the EU Energy System Integration Strategy in a February 2021 EU public consultation response, additionally stating that “fossil fuels in heating systems (in buildings and district heating) should be gradually phased out”. Furthermore, in a joint letter signed by the Alliance of CEO Climate Leaders in June 2021, President and CEO Kim Fausing advocated for policymakers to remove fossil fuel subsidies, phase out coal, and promote the electrification of transport.
Industry Association Governance Danfoss does not appear to have published an easily accessible disclosure of its memberships to industry associations. The company's CDP response in July 2021 contained limited information. It was found that the company is a member of DigitalEurope.