Case Study: Danfoss builds a carbon reduction roadmap with McKinsey & Company

Danfoss cuts emissions up to 95% with McKinsey & Company

Danfoss, a major global components manufacturer, sought to become the preferred decarbonization partner for its customers in emission-heavy sectors. To achieve this, the company needed to establish a realistic and ambitious decarbonization target and a clear roadmap to meet it. Danfoss engaged McKinsey & Company, utilizing their Catalyst Zero solution, to help address this challenge.

McKinsey developed a digital platform, the Zero Carbon Product tool, to map emissions across Danfoss's supply chain and identify decarbonization levers. This created a cost-optimized roadmap, which was piloted on five products. The solution achieved a potential 95% reduction in materials emissions for those products with minimal cost increase. McKinsey also helped Danfoss build internal capabilities and train employees, enabling the company to scale this approach across its entire product portfolio and set ambitious Science Based Targets for 2030.

Danfoss