Danfoss impacts the Sustainable Development Goals 2018 Page 1

Our impact on the Sustainable Development Goals

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Danfoss impacts the Sustainable Development Goals

If we, as companies, work to melt the global goals together with our strategies for the common good of owners, employees and the surrounding society, we are on the right path in our efforts to achieve the goals by 2030 with solutions to most of the global challenges that the global goals address. Numerous analyzes and reports show the value of being a sustainable company in a sustainable society, because businesses create value in terms of increased employee engagement, more efficient operations and improved resource utilization. In other words, delivering solutions to the world's challenges is really good business. At the societal level, the work on sustainability and the global goals creates value directly or indirectly through the company's initiatives. Society benefits from a company taking responsibility for vulnerable people in the labor market, for training an employee or contributing to increasing the share of green energy. We can stand really strong by joining forces in partnerships and delivering ambitious solutions, based on our know-how, which not only solves one challenge, but also contributes to broad value creation locally and regionally. Among other things, this is about complying with global minimum standards within human rights, labor rights, environment and anti-corruption by working according to the Global Compact's ten principles for responsible business operations. Danfoss is one of the companies that want to make the Global Goals and the Global Compact's 10 principles even more accessible to the business community. Because it is important to solve major global challenges, because it is a good business and because the effort pays off quickly. We all have a different approach to the work, we work in different pace and have been doing it for shorter or longer periods. But it is important that more companies seize the ball so that we can jointly share knowledge, dilemmas and experiences and help make Denmark a pioneer for responsible companies that see sustainability as a natural part of their business foundation and opportunity.

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The UN Agenda recognizes the joint efforts of all stakeholders in the pursuit of common goals. With sustainable development as a key priority for the United Nations, the creation of the 17 Sustainable Development Goals was no surprise. The SDGs shape the direction and serve as a universal communication tool to be used globally across nations and stakeholders. The private sector is called for action in addressing social, economic and environmental dimensions of sustainable development. Sustainability is part of our DNA and ensures our license to operate. Our work on sustainability and the Global Goals creates value directly or indirectly through our activities. Many of our products contribute to achieving the 2030 targets, but our passion for energy efficiency is most directly linked to four of the seventeen goals. That´s why SDG 6, SDG 7, SDG 11 and SDG 12 are at the center of our efforts. Plus, society benefits from us taking responsibility for vulnerable people in the labor market, for training employees or contributing to increasing the share of green energy. Today, we have innovation and technologies to help meet our climate targets and future-proof our planet. But with partnerships, we can add speed and scale. That´s why, looking forward, we aim at continuously strengthening Danfoss’ engagement in Sustainable Development Goals, increasing ownership and committing to the Sustainable Development Goals in Danfoss' global organization. We are proud to be one of the few industrial companies involved in UN activities and a member of Sustainable Energy for All and UN Environment District Energy in Cities initiative. We have a broad range of products within climate and energy and the Global Goals fit well into our business context. Many of our products contribute to achieving the goals, and we focus on how we can actively – globally and locally, commercially and politically – contribute to the fulfillment of the Global Goals.

At the more social level, the work on sustainability and the Global Goals creates value directly or indirectly through our activities. Society benefits from companies taking responsibility for vulnerable people in the labor market, for training employees or contributing to increasing the share of green energy. Examples of our impact are given on the following pages.

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Click on the pictures to learn more about our contribution.

Danfoss impacts the Sustainable Development Goals 2018 Page 5

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Danfoss impacts the Sustainable Development Goals 2018 Page 6

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© Copyright Danfoss | Produced by the Danfoss Group | Published May, 2019