As we prepare for the upcoming Future of Sourcing Awards at GES24 in Rancho Mirage, California, it’s a perfect time to reflect on the journeys of past winners who have significantly influenced the procurement landscape. Among these outstanding organizations is Danfoss, winner of the Innovations in ESG award, recognized for their commitment to decarbonization and energy efficiency.
Danfoss pioneers solutions for customers to enable decarbonization in an intelligent, cost-optimal manner while working to achieve carbon neutrality in their own operations. They have committed to ambitious targets covering their operations, suppliers, and customers with a focus on reducing value chain emissions, including “purchased goods and services” and “use of sold products.” In their journey, Danfoss Turbocor® set out to find ways to meet these targets within their organization, defining, devising, and executing a decarbonization strategy through the efforts of their Sourcing functions. This prestigious recognition celebrates organizations that have made transformative contributions to the sourcing field through pioneering efforts and thought leadership.
Why Danfoss Embarked on This Project
Danfoss aims to become the preferred partner for customers in decarbonization, creating long-term value for all stakeholders. Their portfolio includes technologies that enable energy savings and the use of cleaner fuels. Danfoss Turbocor® Compressors, the world’s first oil-free magnetic bearing compressors for the HVAC industry, continue to lead in innovation, sustainability, and energy efficiency. To uphold their decarbonization partnership, it was necessary to enhance the product development teams’ understanding and targets through Environmental Product Declarations (EPDs).
Original Practices and the Drive to Innovate
Energy efficiency and product optimization have always been priorities for Danfoss Turbocor. The commitment to science-based targets and CO2 neutrality by 2030 strengthened their direction and purpose. Team education on sustainability impacts was intensified, aiming to provide best-in-class energy-efficient and sustainable products. Danfoss pioneers solutions for customers to enable decarbonization in an intelligent, cost-optimal manner while working to achieve carbon neutrality in their own operations. This involves ambitious targets covering operations, suppliers, and customers with a focus on reducing value chain emissions, including “purchased goods and services” and “use of sold products.”
Measuring Success
Project success is demonstrated in annual reports, publishing GHG data for every scope since 2021. Over 150 colleagues have engaged in sustainability workshops, internal ESG courses were launched, and CO2 neutrality for the Tallahassee production building has been committed to. Circularity initiatives and compressor refurbishment programs reflect progress.
Ensuring Future Relevance
Danfoss is committed to achieving ESG ambitions and staying current with scientific, regulatory, and customer needs. The Danfoss Circularity framework is implemented in product development, EPDs are re-certified every five years, and close collaboration with suppliers to improve components is maintained. Robust emission data foundations, continuous R&D, and supplier collaboration drive these efforts. The journey includes defining, devising, and executing a decarbonization strategy through the efforts of Sourcing functions.
Advice for Implementing Innovative Approaches
Achieving ESG goals requires the collaboration of the entire organization. Engaging employees through awareness training, comprehensive reporting, and strong process documentation is crucial. Transparency in accounting, communication, and avoiding double-accounting of sustainable products is key.
Key Factors for Innovation
Transparency in all aspects is crucial to avoid confusion, errors, and greenwashing. Over-explaining accounting methods, innovating communication about the decarbonization journey, and ensuring clear accounting of sustainable products’ impacts are essential.
Are You Ready to Win an Award?
Enter to win a Future of Sourcing Award for your team or yourself. The Awards will be judged by a prestigious panel in both team and individual categories.
Nominations for Next Awards Close June 30th, 2024!
As we celebrate the achievements of industry leaders like Danfoss, we are reminded of the transformative power of passion, perseverance, and innovation. With nominations now open for the next Future of Sourcing Awards at the upcoming Global Executive Summit (10/7-10/9) in Rancho Mirage, CA, we invite you to join us in honoring the trailblazers shaping the future of procurement.
Other Award Categories include:
- Rising Star Awards
- Sourcing Supernova Hall of Fame
- Innovation in Digitization
- Innovation in Sourcing
- Innovation in Outsourcing
- Innovation in Governance/Compliance
- Innovation in ESG
- Innovation in Supplier Diversity
- Innovation in Supplier Diversity
- Innovation in Sustainability
- Innovation in Talent Management
- Innovation in Third-Party Risk Management
Learn more about all of our Individual and Team Award categories today.
Nominations for the Future of Sourcing Awards are open—submit yours today. Together, let’s continue to inspire, innovate, and propel the industry forward.
Together, let’s continue to inspire, innovate, and propel the industry forward. Submit your nomination today!