Danfoss – Danfoss joins First Movers Coalition and commits to drive global development of sustainable aluminum


  • Danfoss commits to at least 10% (by volume) of all primary aluminum procured annually to be low-carbon by 2030.
  • The coalition is led by World Economic Forum and the United States (US) Department of State, comprising of 82 members, all global players in their markets.
  • The aluminum industry generates more than 1.1 billion tons of CO2e (carbon dioxide equivalent) emissions annually – around 2% of global emissions.[i]


The World Economic Forum has announced that Danfoss has joined the First Movers Coalition (FMC), a global coalition to decarbonize hard-to-abate industries. Danfoss joins the FMC aluminum sector, committing that at least 10% (by volume) of all the company’s primary aluminum procured per year will be low-carbon by 2030. Additionally, Danfoss commits to ensuring that at least 50% of all aluminum used annually is composed of secondary aluminum by 2030.

Aluminum is key to the manufacturing of Danfoss’ Micro Channel Heat Exchangers (MCHE) used in the likes of rooftop units, chillers, residential air conditioners, and refrigeration. Aluminum provides good thermal conductivity, is lightweight which is important for reducing carbon emissions during the lifecycle of air conditioning. It is also easy to recycle because of the low density and low-melting temperature.

As a member of the FMC, Danfoss joins a group of industry players harnessing purchasing power to create a market for low-carbon aluminum, sending a strong market demand signal for the emerging technologies essential for a net-zero transition. This commitment by members focuses on creating a sustainable value chain for aluminum and achieving a 50% reduction in CO2 emissions from primary aluminum production by 2050. Danfoss has already entered into negotiations and begun contractual agreements with suppliers for low-carbon aluminum.

Jürgen Fischer, President, Danfoss Climate Solutions, says:”Our customers are increasingly demanding products with a lower carbon footprint – and they’re right to do so. By joining the First Movers Coalition we are responding to this demand by fostering the critical development of low-carbon aluminum production, and thereby accelerating its entry to market. Being part of the coalition also aligns with our own commitment as a leader in the green transition, to achieve carbon neutrality across Danfoss’ global operations by 2030 and to reduce our value chain emissions by 15% by 2030.”


Rob van Riet, Interim Head, First Movers Coalition, said:”We are thrilled to welcome Danfoss to the First Movers Coalition, and are eager to work together towards the scaling up of the low-carbon aluminum market globally. Our joint focus will be on surfacing solutions to decarbonize aluminum and accelerate their deployment with committed organizations like Danfoss, aiming to bring these solutions to commercial scale.”

Led by the World Economic Forum and the US Government, the FMC targets hard-to-abate sectors including aluminum, aviation, chemicals, concrete, shipping, steel, and trucking, which are responsible for 30% of global emissions. For these sectors to decarbonize at the speed needed to keep the planet on a 1.5-degree pathway, they require low-carbon technologies that are not yet competitive with current carbon-intensive solutions.

FMC member companies commit to purchasing a percentage of near-zero or zero-carbon solutions from suppliers, which may come at a premium cost. If a critical mass of global companies commit a certain percentage of their future purchasing to clean technologies in this decade, this will create a market tipping point that will accelerate their affordability and drive long-term, net-zero transformation across industrial value chains. The FMC is currently composed of 82 members, all global players in their markets.

The aluminum industry generates approximately 2% of global emissions[i], but it also has the strongest potential to become carbon negative by 2050. Switching to low-carbon electricity is the biggest step the industry can take to deliver a sector compatible with net zero targets.[ii]

Danfoss has committed to achieve CO2 neutrality in its global operations (Scope 1 & 2) by 2030 – supporting the business ambition to limit global warming to 1.5°C, which has been validated by the Science Based Targets initiative (SBTi), and includes a reduction in value chain emissions (Scope 3) by 15% by 2030. In addition, Danfoss has a dedicated target of reaching 25% emissions reduction from its suppliers by 2030 compared to the 2019 baseline. This commitment is included in the targets of Danfoss’ three step-change initiatives on Decarbonization, Circularity, and Diversity, Equity & Inclusion.

Already Danfoss has seen progress in decoupling environmental impact from business growth by delivering a 7% decrease in Scope 1 and 2 emissions while growing 15% organically in 2022.


Read more about Danfoss’s ESG ambition here.

More information about the First Movers Coalition can be found here.


[i]WEF_Aluminium_for_Climate_2020.pdf (weforum.org)

[ii]Aluminium Sector Greenhouse Gas Pathways to 2050 – International Aluminium Institute (international-aluminium.org)



EMR Analysis

More information on Danfoss: See the full profile on EMR Executive Services

More information on Kim Fausing (President and Chief Executive Officer, Danfoss): See the full profile on EMR Executive Services

More information on Jürgen Fischer (Member of the Group Executive Team (GET), President, Danfoss Climate Solutions, Danfoss): See the full profile on EMR Executive Services


More information on First Movers Coalition (FMC): https://www.weforum.org/first-movers-coalition/ + The FMC is a coalition of companies using their purchasing power to create early markets for innovative clean technologies across eight hard to abate sectors. These in-scope sectors are responsible for 30% of global emissions–a proportion expected to rise to over 50% by mid-century without urgent progress on clean technology innovation.

Commitments for the first four sectors (Aviation, Shipping, Steel and Trucking) were launched in November 2021, at COP26 in Glasgow. The Aluminum and Carbon Dioxide Removal sectors were launched at the May 2022 World Economic Forum Annual Meeting in Davos, and the Cement & Concrete sector was launched at COP27 in Sharm el-Sheikh. Details on each of the commitments can be found here.

Although formulating purchase commitments and aggregating demand against these commitments is core to the FMC, the Coalition’s activities go beyond this. Other activities focus on supporting members in delivering on their commitments and creating an enabling environment.

More information on Rob van Riet (Interim Head, First Movers Coalition (FMC)): https://www.linkedin.com/in/rob-van-riet-070b354/ 


More information on the World Economic Forum (WEF): https://www.weforum.org + The World Economic Forum is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas.

It was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland. It is independent, impartial and not tied to any special interests. The Forum strives in all its efforts to demonstrate entrepreneurship in the global public interest while upholding the highest standards of governance. Moral and intellectual integrity is at the heart of everything it does.
Our activities are shaped by a unique institutional culture founded on the stakeholder theory, which asserts that an organization is accountable to all parts of society. The institution carefully blends and balances the best of many kinds of organizations, from both the public and private sectors, international organizations and academic institutions.
We believe that progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change.

More information on Klaus Schwab (Founder and Executive Chairman, World Economic Forum): https://www.weforum.org/about/klaus-schwab


More information on the United States Department of State: https://www.state.gov/ + Our Mission: To protect and promote U.S. security, prosperity, and democratic values and shape an international environment in which all Americans can thrive.

More information on Antony J. Blinken (Secretary of State, United States): https://www.state.gov/secretary/


More information on Net Zero by 2050 by the United Nations: https://www.un.org/en/climatechange/net-zero-coalition + Put simply, net zero means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere, by oceans and forests for instance.

Currently, the Earth is already about 1.1°C warmer than it was in the late 1800s, and emissions continue to rise. To keep global warming to no more than 1.5°C  – as called for in the Paris Agreement – emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

More than 140 countries, including the biggest polluters – China, the United States, India and the European Union – have set a net-zero target, covering about 88% of global emissions. More than 9,000 companies, over 1000 cities, more than 1000 educational institutions, and over 600 financial institutions have joined the Race to Zero, pledging to take rigorous, immediate action to halve global emissions by 2030.




EMR Additional Notes:

  • Carbon Dioxide (CO2):
    • Primary greenhouse gas emitted through human activities. Carbon dioxide enters the atmosphere through burning fossil fuels (coal, natural gas, and oil), solid waste, trees and other biological materials, and also as a result of certain chemical reactions (e.g., manufacture of cement). Carbon dioxide is removed from the atmosphere (or “sequestered”) when it is absorbed by plants as part of the biological carbon cycle.
  • Biogenic Carbon Dioxide (CO2):
    • Carbon Dioxide released as a result of the combustion or decomposition of organic material, that is biomass and its derivatives. Examples include carbon dioxide released during the combustion of wood and biogas generated by decomposition.
    • Biogenic Carbon Dioxide (CO2) and Carbon Dioxide (CO2) are the same. Scientists differentiate between biogenic carbon (that which is absorbed, stored and emitted by organic matter like soil, trees, plants and grasses) and non-biogenic carbon (that found in all other sources, most notably in fossil fuels like oil, coal and gas).
  • Carbon Capture and Storage (CCS):
    • CCS involves the capture of carbon dioxide (CO2) emissions from industrial processes, such as steel and cement production, or from the burning of fossil fuels in power generation. This carbon is then transported from where it was produced, via ship or in a pipeline, and stored deep underground in geological formations.
    • CCS projects typically target 90 percent efficiency, meaning that 90 percent of the carbon dioxide from the power plant will be captured and stored.
  • Decarbonization:
    • Reduction of carbon dioxide emissions through the use of low carbon power sources, achieving a lower output of greenhouse gasses into the atmosphere.
  • Carbon Footprint:
    • There is no universally agreed definition of what a carbon footprint is. A carbon footprint is generally understood to be the total amount of greenhouse gas (GHG) emissions that are directly or indirectly caused by an individual, organization, product, or service. These emissions are typically measured in tonnes of carbon dioxide equivalent (CO2e).
    • In 2009, the Greenhouse Gas Protocol (GHG Protocol) published a standard for calculating and reporting corporate carbon footprints. This standard is widely accepted by businesses and other organizations around the world. The GHG Protocol defines a carbon footprint as “the total set of greenhouse gas emissions caused by an organization, directly and indirectly, through its own operations and the value chain.”


  • Global Warming: Global warming is the long-term heating of Earth’s climate system observed since the pre-industrial period (between 1850 and 1900) due to human activities, primarily fossil fuel burning, which increases heat-trapping greenhouse gas levels in Earth’s atmosphere.
  • Global Warming Potential (GWP): 
    • The heat absorbed by any greenhouse gas in the atmosphere, as a multiple of the heat that would be absorbed by the same mass of carbon dioxide (CO2). GWP is 1 for CO2. For other gases it depends on the gas and the time frame.
    • Carbon dioxide equivalent (CO2e or CO2eq or CO2-e) is calculated from GWP. For any gas, it is the mass of CO2 which would warm the earth as much as the mass of that gas. Thus it provides a common scale for measuring the climate effects of different gases. It is calculated as GWP times mass of the other gas. For example, if a gas has GWP of 100, two tonnes of the gas have CO2e of 200 tonnes.
    • GWP was developed to allow comparisons of the global warming impacts of different gases.
  • Greenhouse Gas (GHG):
    • A greenhouse gas is any gaseous compound in the atmosphere that is capable of absorbing infrared radiation, thereby trapping and holding heat in the atmosphere. By increasing the heat in the atmosphere, greenhouse gases are responsible for the greenhouse effect, which ultimately leads to global warming.
    • The main gases responsible for the greenhouse effect include carbon dioxide, methane, nitrous oxide, and water vapor (which all occur naturally), and fluorinated gases (which are synthetic).
  • Hydrofluorocarbons (HFC):
    • Hydrofluorocarbons (HFCs) are a group of industrial chemicals primarily used for cooling and refrigeration. HFCs were developed to replace stratospheric ozone-depleting substances that are currently being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer.
    • Many HFCs are very powerful greenhouse gases and a substantial number are short-lived climate pollutants with a lifetime of between 15 and 29 years in the atmosphere.
  • GHG Protocol Corporate Standard Scope 1, 2 and 3: https://ghgprotocol.org/ + The GHG Protocol Corporate Accounting and Reporting Standard provides requirements and guidance for companies and other organizations preparing a corporate-level GHG emissions inventory. Scope 1 and 2 are mandatory to report, whereas scope 3 is voluntary and the hardest to monitor.
    • Scope 1: Direct emissions:
      • Direct emissions from company-owned and controlled resources. In other words, emissions are released into the atmosphere as a direct result of a set of activities, at a firm level. It is divided into four categories:
        • Stationary combustion (e.g fuels, heating sources). All fuels that produce GHG emissions must be included in scope 1.
        • Mobile combustion is all vehicles owned or controlled by a firm, burning fuel (e.g. cars, vans, trucks). The increasing use of “electric” vehicles (EVs), means that some of the organisation fleets could fall into Scope 2 emissions.
        • Fugitive emissions are leaks from greenhouse gases (e.g. refrigeration, air conditioning units). It is important to note that refrigerant gases are a thousand times more dangerous than CO2 emissions. Companies are encouraged to report these emissions.
        • Process emissions are released during industrial processes, and on-site manufacturing (e.g. production of CO2 during cement manufacturing, factory fumes, chemicals).
    • Scope 2: Indirect emissions – owned:
      • Indirect emissions from the generation of purchased energy, from a utility provider. In other words, all GHG emissions released in the atmosphere, from the consumption of purchased electricity, steam, heat and cooling. For most organisations, electricity will be the unique source of scope 2 emissions. Simply stated, the energy consumed falls into two scopes: Scope 2 covers the electricity consumed by the end-user. Scope 3 covers the energy used by the utilities during transmission and distribution (T&D losses).
    • Scope 3: Indirect emissions – not owned:
      • Indirect emissions – not included in scope 2 – that occur in the value chain of the reporting company, including both upstream and downstream emissions. In other words, emissions are linked to the company’s operations. According to GHG protocol, scope 3 emissions are separated into 15 categories.
Scheme 1,2,3 scope emissions Credit: Plan A based on GHG protocol


More information on The Science Based Targets initiative (SBTi): https://sciencebasedtargets.org/ + The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.

The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments. The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.

  • Defines and promotes best practices in emissions reductions and net-zero targets in line with climate science.
  • Provides target setting methods and guidance to companies to set science-based targets in line with the latest climate science.
  • Includes a team of experts to provide companies with independent assessment and validation of targets.
  • Serves as the lead partner of the Business Ambition for 1.5°C campaign, an urgent call to action from a global coalition of UN agencies, business and industry leaders that mobilizes companies to set net-zero science-based targets in line with a 1.5 degrees C future.


  • Circular Economy: 
    • A circular economy is a systemic approach to economic development designed to benefit businesses, society, and the environment. In contrast to the ‘take-make-waste’ linear model, a circular economy is regenerative by design and aims to gradually decouple growth from the consumption of finite resources.
    • In such an economy, all forms of waste, such as clothes, scrap metal and obsolete electronics, are returned to the economy or used more efficiently.
    • The aim of a circular economy is hence to create a closed-loop system where waste and pollution are minimized and resources are conserved, reducing the environmental impact of production and consumption.
  • Sustainability Vs. Circular Economy:
    • Circularity focuses on resource cycles, while sustainability is more broadly related to people, the planet and the economy. Circularity and sustainability stand in a long tradition of related visions, models and theories.
    • A sustainable circular economy involves designing and promoting products that last and that can be reused, repaired and remanufactured. This retains the functional value of products, rather than just recovering the energy or materials they contain and continuously making products anew.


  • DEI (Diversity, Equity and Inclusion):
    • https://dei.extension.org/ +
      • Diversity is the presence of differences that may include race, gender, religion, sexual orientation, ethnicity, nationality, socioeconomic status, language, (dis)ability, age, religious commitment, or political perspective.
      • Equity is promoting justice, impartiality and fairness within the procedures, processes, and distribution of resources by institutions or systems.
      • Inclusion is an outcome to ensure those that are diverse actually feel and/or are welcomed.  Inclusion outcomes are met when you, your institution, and your program are truly inviting to all.


  • ESG (Environmental, Social and Governance):
    • Refers to the three key factors when measuring the sustainability and ethical impact of an investment in a business or company. Most socially responsible investors check companies out using ESG criteria to screen investments.
    • ESG metrics are not commonly part of mandatory financial reporting, though companies are increasingly making disclosures in their annual report or in a standalone sustainability report.
    • There is not a standardized approach to the calculation or presentation of different ESG metrics.
      • Environmental: Conservation of the natural world
        • Climate change and carbon emissions
        • Air and water pollution
        • Biodiversity
        • Deforestation
        • Energy efficiency
        • Waste management
        • Water scarcity
      • Social: Consideration of people & relationships
        • Customer satisfaction
        • Data protection and privacy
        • Gender and diversity
        • Employee engagement
        • Community relations
        • Human rights
        • Labor standards
      • Governance: Standards for running a company
        • Board composition
        • Audit committee structure
        • Bribery and corruption
        • Executive compensation
        • Lobbying
        • Political contributions
        • Whistleblower schemes
    • Criteria are of increasing interest to companies, their investors and other stakeholders. With growing concern about he ethical status of quoted companies, these standards are the central factors that measure the ethical impact and sustainability of investment in a company.
    • Consequently, ESG analysis considers how companies serve society and how this impacts their current and future performance.
  • CSR (Corporate Social Responsability):
    • Framework or business model that helps a company be socially accountable to itself, its stakeholders, and the public.
    • The purpose of CSR is to give back to the community, take part in philanthropic causes, and provide positive social value. Businesses are increasingly turning to CSR to make a difference and build a positive brand around their company.
    • CSR tends to target opinion formers – politicians, pressure groups, media. Sustainability targets the whole value chain – from suppliers to operations to partners to end-consumers.
  • CSR vs. ESG:
    • CSR is a company’s framework of sustainability plans and responsible cultural influence, whereas ESG is the assessable outcome concerning a company’s overall sustainability performance.
    • The major difference between them is that CSR is a business model used by individual companies, but ESG is a criteria that investors use to assess a company and determine if they are worth investing in.