Danfoss published its Modern Slavery Act Statement 2023, approved by its Board on March 5, 2024, outlining comprehensive human rights due diligence processes, rigorous supplier audits, and training initiatives to combat forced labor. The statement emphasizes compliance with the UK Modern Slavery Act, the California Transparency in Supply Chains Act, and the Norwegian Transparency Act, thereby reinforcing the company’s commitment to ethical business practices.

Danfoss President and CEO Kim Fausing called on governments at COP28 to double the annual rate of energy efficiency improvements, emphasizing that a radical shift in energy policy is critical for achieving net zero by 2050. His statement advocates for stronger policy packages, heightened global investment in energy efficiency and electrification, and dynamic energy pricing to optimize renewable energy use.

Danfoss CEO Kim Fausing called on global energy and climate ministers to adopt energy-efficiency policies at the IEA’s 8th Annual Global Conference in Versailles, France, urging a shift in political narratives to rapidly address energy demand, climate change, and energy security. His advocacy emphasized integrating digital solutions like IoT and AI to optimize energy systems.

At the IEA Conference in Versailles on June 7, 2023, Danfoss President and CEO Kim Fausing called on energy and climate ministers to change the political narrative and prioritize the implementation of energy efficiency policies, emphasizing this approach as a critical element for reducing energy demand, improving energy security, and mitigating climate change.

The Danish Business Authority closed its investigation into Danfoss after determining that the company did not violate export control rules related to supplying products for military use following Russia’s annexation of Crimea and Sevastopol. In the wake of sanctions and the war in Ukraine, Danfoss exited the Russian and Belarusian markets and deconsolidated its Russian operations by August 31, 2022.

Danfoss published its ethics and human rights statement detailing its commitment to respecting human rights, including a focus on mitigating forced labor risks in its value chain through rigorous due diligence and adherence to UN guidelines.

Danfoss published its human rights statements and policies on its official website, outlining its commitment to international human rights, proper working conditions, and anti-corruption practices. The announcement includes global policies as well as a local statement from its Neumünster plant and a grievance mechanism in compliance with the LKSG, emphasizing its dedication to ethical business operations.

Danfoss is being investigated by Erhvervsstyrelsen for possible breaches of EU sanctions after revelations that its wholly-owned Russian subsidiary, AO Ridan, has supplied industrial heat exchangers used in Russian military vessels and projects, raising concerns about inadequate due diligence and ethical business practices.

Danfoss' UAE subsidiary, Danfoss FZCO, committed 225 OFAC sanctions violations by directing payments from customers in sanctioned countries (Iran, Syria, Sudan) through a US financial institution. The lapse in effective sanctions compliance led to a significant financial penalty of over $4.3 million, prompting the company to later introduce stricter internal controls and training.