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How a global components manufacturer built an ambitious carbon reduction roadmap | McKinsey

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2023</time> | Case Study</div></div></div><div><button data-component="mdc-c-button" aria-label="" type="button" id="button_id" class="mdc-c-button___U4iY2_80caed7 mdc-c-button--ghost mdc-c-button--size-medium FullHero_mck-c-full-hero__arrow__jtXdj" data-click-track="true" data-layer-event-prefix="UI Item" data-layer-action="click" data-layer-category="article" data-layer-text="skip article header section" data-layer-region="full hero"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_80caed7 mdc-c-icon--size-xl___3BEee_80caed7 mck-arrow-down-icon"></span></button></div></div></div></div></div></div></div></div><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-gutter-xxl"><section data-layer-region="article-body-header" class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400 byline-share-container"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-7 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-8 mdc-u-ts-10"></div></section><section class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_80caed7 mdc-u-ts-5"><div class="mck-u-links-inline">Danfoss is working to decarbonize the supply chain for some of the world’s most emission-heavy sectors with the help of McKinsey.</div></div></div></section><main data-layer-region="article-body" class="mdc-u-grid mdc-u-grid-gutter-xxl"><div class="mdc-u-grid mdc-u-grid-col-1 mdc-u-grid-col-md-12"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div class="mdc-o-content-body mck-u-dropcap"><p>Inside every machine are countless essential components, and the makers of those components contribute to carbon emissions for the life of those technologies. In fact, given Scope 3 emissions in their supply chains, manufacturing, transport, and construction are the most emission-heavy sectors in the world. </p> <p>Danfoss is one organization working to change that. One of the largest producers of component parts for heating and cooling, drives, and power solutions, the Nordic company’s net-zero transformation is helping manufacturers around the world green their supply chains. </p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-disruptor1up mck-o-md-center mck-u-inline-module-border-top mck-u-inline-module-border-bottom mck-u-screen-only" data-layer-region="disruptor-1up"><div class="mdc-u-grid mdc-u-grid-gutter-md mdc-u-grid-col-lg-12 mdc-u-grid-col-md-12 "><div class="mdc-u-grid-col-lg-span-4 mdc-u-grid-col-md-span-5 Disruptor1Up_mck-c-disruptor1up__image___2Gc4"><picture data-component="mdc-c-picture"><img alt="Catalyst Zero" src="/~/media/mckinsey/business%20functions/sustainability/how%20we%20help%20clients/catalyst%20zero/catalyst-zero-thumb_1536x1536.jpg?cq=50&amp;mh=145&amp;car=16:9&amp;cpy=Center" loading="lazy"/></picture></div><div class="mdc-u-grid-col-lg-span-8 mdc-u-grid-col-md-span-7"><header data-component="mdc-c-header" class="mdc-c-header"><div class="mdc-c-header__block___i1Lg-_80caed7"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_80caed7"><div>Would you like to learn more about our <a href="/capabilities/sustainability/how-we-help-clients">Sustainability Practice</a>?</div></h3></div></header><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_80caed7 mdc-c-link-container--display-column___X0HDD_80caed7 mck-c-disruptor1up__content Disruptor1Up_mck-c-disruptor1up__content--links__VV4lE mdc-u-grid-gutter-md"><a data-component="mdc-c-link" href="/capabilities/sustainability/how-we-help-clients/catalyst-zero" class="mdc-c-link-cta___NBQVi_80caed7"><span class="mdc-c-link__label___Pfqtd_80caed7">Visit our Catalyst Zero page</span><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_80caed7 mck-link-arrow-right-icon"></span></a></div></div></div></div> <div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" data-module-gradient-position="top-right" class="mck-o-edge-to-edge SectionHeader_mck-c-section-header___N7qG mck-c-module-wrapper"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_80caed7 background-image-section-header-D4721FC20CC34537AD459E1DC91DAD39-bg SectionHeader_mck-c-section-header__parallax-container__sgMMy"></div><div class="mdc-c-bg-image___GJdv1_80caed7 mdc-c-bg-image--opaque-bg___CauU1_80caed7" style="opacity:0.5"></div><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing"><div id="section-header-1" class="mdc-u-grid mdc-u-grid-col-lg-12 SectionHeader_mck-c-section-header__wrapper__CZEyB"><div class="mdc-u-grid-col-lg-start-2 mdc-u-grid-col-lg-end-12 SectionHeader_mck-c-section-header__wrapper-positioned__fIWpF"><div class="mdc-u-grid mdc-u-grid-gutter-sm SectionHeader_mck-c-section-header__wrapper-text__hSx1f"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_80caed7 SectionHeader_mck-c-section-header__heading__2ePOu"><span>The opportunity</span></h2></div><div class="SectionHeader_mck-c-section-header__section-holder__BaLti"></div></div></div></div></div></div> <p>With more than 42,000 employees across the world, Danfoss produces thousands of components each year. Used across manufacturing industries, these components find their way into countless technologies essential to keeping everyday life moving for people the world over.</p> <p>The company, says CEO Kim Fausing, has an opportunity to make a powerful environmental impact. “We’re at a critical juncture in addressing climate change. Everything Danfoss does is focused on increasing machine productivity, reducing emissions, lowering energy consumption, and enabling electrification,” says Kim. “We want to be the best-in-class preferred partner for customers looking to decarbonize and are taking our own medicine—continuously making the way we run our business more energy efficient.” <div data-module-category="" class="PullQuote_mck-c-pullquote__DbaQ5 mck-o-lg-center"><blockquote data-component="mdc-c-blockquote" class="PullQuote_mck-c-blockquote__6n21p mdc-c-blockquote mdc-c-blockquote--is-quotes___TozKo_80caed7"><p>We’re at a critical juncture in addressing climate change. Everything Danfoss does is focused on increasing machine productivity, reducing emissions, lowering energy consumption, and enabling electrification.</p><cite class="mdc-c-blockquote__cite-container"><div class="mdc-c-blockquote__author-name___u4L7-_80caed7">Danfoss CEO, Kim Fausing</div></cite></blockquote></div></p> <p>Kim and Jürgen Fischer, president of Danfoss Climate Solutions began having high-level discussions with McKinsey in the summer of 2021 about how best to engage customers -- makers of equipment across these emission-heavy sectors who use Danfoss’s component parts – to become their preferred partner in decarbonization. </p> <p>The question at the center of those conversations: What should Danfoss’s decarbonization target be and how could the company make a realistic plan to meet it? </p> <div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" data-module-gradient-position="top-right" class="mck-o-edge-to-edge SectionHeader_mck-c-section-header___N7qG mck-c-module-wrapper"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_80caed7 background-image-section-header-F8575759A03E4F65BABAAED02CCA2C7A-bg SectionHeader_mck-c-section-header__parallax-container__sgMMy"></div><div class="mdc-c-bg-image___GJdv1_80caed7 mdc-c-bg-image--opaque-bg___CauU1_80caed7" style="opacity:0.5"></div><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing"><div id="section-header-2" class="mdc-u-grid mdc-u-grid-col-lg-12 SectionHeader_mck-c-section-header__wrapper__CZEyB"><div class="mdc-u-grid-col-lg-start-2 mdc-u-grid-col-lg-end-12 SectionHeader_mck-c-section-header__wrapper-positioned__fIWpF"><div class="mdc-u-grid mdc-u-grid-gutter-sm SectionHeader_mck-c-section-header__wrapper-text__hSx1f"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_80caed7 SectionHeader_mck-c-section-header__heading__2ePOu"><span>Setting a course for net zero</span></h2></div><div class="SectionHeader_mck-c-section-header__section-holder__BaLti"></div></div></div></div></div></div> <p>Danfoss’s Climate Solutions business is responsible for producing heating and cooling machinery components. Teaming up with McKinsey sustainability experts, Danfoss looked for ways to decarbonize various aspects of it.</p> <p>They learned that while the highest carbon emissions come from the use of products across their entire lifecycle, the second largest source of emissions lies in the materials and construction processes. Product redesign and an alternative supply chain offered two possible ways forward.</p> <p>“Material decarbonization is the next frontier for advanced industries,” says McKinsey partner Jacob Staun. “We helped Danfoss map out the complexity of their supply chains to identify sources of emission and design solutions with a positive impact on cost and carbon.”</p> <div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" data-module-gradient-position="top-right" class="mck-o-edge-to-edge SectionHeader_mck-c-section-header___N7qG mck-c-module-wrapper"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_80caed7 background-image-section-header-501596961D07490FAA9946B2053E05D1-bg SectionHeader_mck-c-section-header__parallax-container__sgMMy"></div><div class="mdc-c-bg-image___GJdv1_80caed7 mdc-c-bg-image--opaque-bg___CauU1_80caed7" style="opacity:0.5"></div><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing"><div id="section-header-3" class="mdc-u-grid mdc-u-grid-col-lg-12 SectionHeader_mck-c-section-header__wrapper__CZEyB"><div class="mdc-u-grid-col-lg-start-2 mdc-u-grid-col-lg-end-12 SectionHeader_mck-c-section-header__wrapper-positioned__fIWpF"><div class="mdc-u-grid mdc-u-grid-gutter-sm SectionHeader_mck-c-section-header__wrapper-text__hSx1f"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_80caed7 SectionHeader_mck-c-section-header__heading__2ePOu"><span>Innovating with technology</span></h2></div><div class="SectionHeader_mck-c-section-header__section-holder__BaLti"></div></div></div></div></div></div> <p>To facilitate and accelerate the process, Danfoss, with the help of McKinsey, developed a digital platform that assesses carbon emissions along the entire supply chain of each product. This tool, called Zero Carbon Product, from McKinsey’s <a href="/capabilities/sustainability/how-we-help-clients/catalyst-zero">Catalyst Zero</a> solution, mapped the company’s bill of materials for each product against a library of around 600 decarbonization levers spanning 100 material categories. </p> <p>The result was a cost-optimized decarbonization roadmap showing, for example, alternative suppliers for certain materials like iron, steel, and aluminum, that could help Danfoss create low-carbon versions of existing products still at low cost. </p> <!-- --> <p><strong>Partnering for success </strong></p> <p>The next step in the process was to test the roadmap’s likelihood of success. </p> <p>Pilot journeys were created for five products from Danfoss’s Climate Solutions portfolio. An assessment of these initial five products found that for a minimal increase in costs, emissions from materials purchased to make each product could be reduced by as much as 95 percent. Here was a clear path to eliminating most emissions at low cost.<!-- --> </p> <p>The program pinpointed exactly where reductions could be made and how – an assessment that took hours rather than days with traditional methods – thereby creating an opportunity to scale the solution across Danfoss’s large product line. </p> <p>At the same time, McKinsey conducted customer interviews to better understand the price elasticity of low-carbon products. This would help Danfoss determine which suppliers to team up with to pilot some of these new sustainable product line solutions.</p> <p><strong>Building capabilities </strong></p> <p>The next question was one of scale. Danfoss’s entire portfolio comprises hundreds of product lines, each with anywhere from tens to hundreds of product variances. While Danfoss has around 5,000 suppliers, McKinsey’s analysis found that around half of total embodied emissions came from just 50 of those suppliers. This created a shortlist to focus on to have the greatest impact. </p> <p>Danfoss worked with McKinsey to build new capabilities, including embedding carbon assessments into product engineering and retraining employees to add decarbonization to their procurement strategy. </p> <p>“Building lower carbon products requires an entirely new way of working, one that requires new skill sets and embedding carbon reduction into every business process including procurement, product design, and go-to-market,” says McKinsey associate partner Jessica Fan.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" data-module-gradient-position="top-right" class="mck-o-edge-to-edge SectionHeader_mck-c-section-header___N7qG mck-c-module-wrapper"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_80caed7 background-image-section-header-3DE559B6D28846B9A56F8CD58D8F61D7-bg SectionHeader_mck-c-section-header__parallax-container__sgMMy"></div><div class="mdc-c-bg-image___GJdv1_80caed7 mdc-c-bg-image--opaque-bg___CauU1_80caed7" style="opacity:0.5"></div><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing"><div id="section-header-4" class="mdc-u-grid mdc-u-grid-col-lg-12 SectionHeader_mck-c-section-header__wrapper__CZEyB"><div class="mdc-u-grid-col-lg-start-2 mdc-u-grid-col-lg-end-12 SectionHeader_mck-c-section-header__wrapper-positioned__fIWpF"><div class="mdc-u-grid mdc-u-grid-gutter-sm SectionHeader_mck-c-section-header__wrapper-text__hSx1f"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_80caed7 SectionHeader_mck-c-section-header__heading__2ePOu"><span>Decarbonizing at scale</span></h2></div><div class="SectionHeader_mck-c-section-header__section-holder__BaLti"></div></div></div></div></div></div> <p>This has helped Danfoss achieve the goal of assessing its entire Climate Solutions product portfolio by the end of 2022 to create a clear product engineering roadmap moving forward. And it’s become part of a broader set of <a href="https://sciencebasedtargets.org/">Science Based Targets</a>: by 2030, Danfoss aims to reduce all direct and indirect emissions from purchased energy by 46.2 percent; reduce emissions across the value chain by 15 percent; and become carbon neutral across its operations.</p> <p>By the end of 2021 into early 2022, training personnel at Danfoss in how to move this decarbonization process forward became a priority. McKinsey deployed a train-the-trainer model, arming around 20 key Danfoss employees with the skills and tools needed to train employees across the organization to carry out this decarbonization mission. <div data-module-category="" class="PullQuote_mck-c-pullquote__DbaQ5 mck-o-sm-right-span"><blockquote data-component="mdc-c-blockquote" class="PullQuote_mck-c-blockquote__6n21p mdc-c-blockquote mdc-c-blockquote--is-quotes___TozKo_80caed7"><p>Achieving carbon neutrality through energy efficiency and electrification is not a transition that happens overnight or by chance.</p><cite class="mdc-c-blockquote__cite-container"><div class="mdc-c-blockquote__author-name___u4L7-_80caed7">Danfoss CEO, Kim Fausing</div></cite></blockquote></div></p> <p>This train-the-trainer process involved identifying key people, making sure they were included in the initial five pilots, then conducting trainings and workshops so they could own the rollout of this new tool. </p> <p>The next step involved taking a closer look at the overall product launch strategy. While the company started with the Climate Solutions segment of its business, the goal is to complete this same process across its other two business units: Power Solutions, which makes up half of the overall business and Power Electronics and Drives, which accounts for another 30 percent. Danfoss is currently working with McKinsey in the proof-of-concept stage for its Power Electronics and Drives business as part of a two-and-a-half-year plan to roll out low carbon products across the entirety of the business. </p> <p>“Achieving carbon neutrality through energy efficiency and electrification is not a transition that happens overnight or by chance,” says Kim. “Danfoss is fully committed to both having a positive climate impact and also helping our customers become more climate-friendly through their use of our products and solutions.” </p></div><div class="container-placeholder"></div></div></div></main></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="StandalonePromo" class="RelatedArticle_mck-c-article-related__GGA76 mck-u-screen-only" data-layer-region="related-articles"><div class="mdc-o-container__wrapper is-wrapped mdc-u-spaced-mobile"><h5 data-component="mdc-c-heading" 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contribute to carbon emissions for the life of those technologies. In fact, given Scope 3 emissions in their supply chains, manufacturing, transport, and construction are the most emission-heavy sectors in the world. \u003c/p\u003e\n\u003cp\u003eDanfoss is one organization working to change that. One of the largest producers of component parts for heating and cooling, drives, and power solutions, the Nordic company\u0026rsquo;s net-zero transformation is helping manufacturers around the world green their supply chains. \u003c/p\u003e\n[[DIsruptor1Up 1]]\n[[sectionheader 1]]\n\u003cp\u003eWith more than 42,000 employees across the world, Danfoss produces thousands of components each year. Used across manufacturing industries, these components find their way into countless technologies essential to keeping everyday life moving for people the world over.\u003c/p\u003e\n\u003cp\u003eThe company, says CEO Kim Fausing, has an opportunity to make a powerful environmental impact. \u0026ldquo;We\u0026rsquo;re at a critical juncture in addressing climate change. Everything Danfoss does is focused on increasing machine productivity, reducing emissions, lowering energy consumption, and enabling electrification,\u0026rdquo; says Kim. \u0026ldquo;We want to be the best-in-class preferred partner for customers looking to decarbonize and are taking our own medicine\u0026mdash;continuously making the way we run our business more energy efficient.\u0026rdquo;\u0026nbsp;[[pullquote 1]]\u003c/p\u003e\n\u003cp\u003eKim and J\u0026uuml;rgen Fischer, president of Danfoss Climate Solutions began having high-level discussions with McKinsey in the summer of 2021 about how best to engage customers -- makers of equipment across these emission-heavy sectors who use Danfoss\u0026rsquo;s component parts \u0026ndash; to become their preferred partner in decarbonization. \u003c/p\u003e\n\u003cp\u003eThe question at the center of those conversations: What should Danfoss\u0026rsquo;s decarbonization target be and how could the company make a realistic plan to meet it? \u003c/p\u003e\n[[sectionheader 2]]\n\u003cp\u003eDanfoss\u0026rsquo;s Climate Solutions business is responsible for producing heating and cooling machinery components. Teaming up with McKinsey sustainability experts, Danfoss looked for ways to decarbonize various aspects of it.[[video 1]]\u003c/p\u003e\n\u003cp\u003eThey learned that while the highest carbon emissions come from the use of products across their entire lifecycle, the second largest source of emissions lies in the materials and construction processes. Product redesign and an alternative supply chain offered two possible ways forward.\u003c/p\u003e\n\u003cp\u003e\u0026ldquo;Material decarbonization is the next frontier for advanced industries,\u0026rdquo; says McKinsey partner Jacob Staun. \u0026ldquo;We helped Danfoss map out the complexity of their supply chains to identify sources of emission and design solutions with a positive impact on cost and carbon.\u0026rdquo;\u003c/p\u003e\n[[sectionheader 3]]\n\u003cp\u003eTo facilitate and accelerate the process, Danfoss, with the help of McKinsey, developed a digital platform that assesses carbon emissions along the entire supply chain of each product. This tool, called Zero Carbon Product, from McKinsey\u0026rsquo;s \u003ca href=\"/capabilities/sustainability/how-we-help-clients/catalyst-zero\"\u003eCatalyst Zero\u003c/a\u003e\u0026nbsp;solution, mapped the company\u0026rsquo;s bill of materials for each product against a library of around 600 decarbonization levers spanning 100 material categories. \u003c/p\u003e\n\u003cp\u003eThe result was a cost-optimized decarbonization roadmap showing, for example, alternative suppliers for certain materials like iron, steel, and aluminum, that could help Danfoss create low-carbon versions of existing products still at low cost. \u003c/p\u003e\n[[ceros 1]]\n\u003cp\u003e\u003cstrong\u003ePartnering for success \u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe next step in the process was to test the roadmap\u0026rsquo;s likelihood of success.\u0026nbsp;\u003c/p\u003e\n\u003cp\u003ePilot journeys were created for five products from Danfoss\u0026rsquo;s Climate Solutions portfolio. An assessment of these initial five products found that for a minimal increase in costs, emissions from materials purchased to make each product could be reduced by as much as 95 percent. Here was a clear path to eliminating most emissions at low cost.[[ceros 2]] \u003c/p\u003e\n\u003cp\u003eThe program pinpointed exactly where reductions could be made and how \u0026ndash; an assessment that took hours rather than days with traditional methods \u0026ndash; thereby creating an opportunity to scale the solution across Danfoss\u0026rsquo;s large product line. \u003c/p\u003e\n\u003cp\u003eAt the same time, McKinsey conducted customer interviews to better understand the price elasticity of low-carbon products. This would help Danfoss determine which suppliers to team up with to pilot some of these new sustainable product line solutions.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eBuilding capabilities \u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe next question was one of scale. Danfoss\u0026rsquo;s entire portfolio comprises hundreds of product lines, each with anywhere from tens to hundreds of product variances. While Danfoss has around 5,000 suppliers, McKinsey\u0026rsquo;s analysis found that around half of total embodied emissions came from just 50 of those suppliers. This created a shortlist to focus on to have the greatest impact.\u0026nbsp;\u003c/p\u003e\n\u003cp\u003eDanfoss worked with McKinsey to build new capabilities, including embedding carbon assessments into product engineering and retraining employees to add decarbonization to their procurement strategy. \u003c/p\u003e\n\u003cp\u003e\u0026ldquo;Building lower carbon products requires an entirely new way of working, one that requires new skill sets and embedding carbon reduction into every business process including procurement, product design, and go-to-market,\u0026rdquo; says McKinsey associate partner Jessica Fan.\u003c/p\u003e\n[[sectionheader 4]]\n\u003cp\u003eThis has helped Danfoss achieve the goal of assessing its entire Climate Solutions product portfolio by the end of 2022 to create a clear product engineering roadmap moving forward. And it\u0026rsquo;s become part of a broader set of \u003ca href=\"https://sciencebasedtargets.org/\"\u003eScience Based Targets\u003c/a\u003e: by 2030, Danfoss aims to reduce all direct and indirect emissions from purchased energy by 46.2 percent; reduce emissions across the value chain by 15 percent; and become carbon neutral across its operations.\u003c/p\u003e\n\u003cp\u003eBy the end of 2021 into early 2022, training personnel at Danfoss in how to move this decarbonization process forward became a priority. McKinsey deployed a train-the-trainer model, arming around 20 key Danfoss employees with the skills and tools needed to train employees across the organization to carry out this decarbonization mission.\u0026nbsp;[[pullquote 3]]\u003c/p\u003e\n\u003cp\u003eThis train-the-trainer process involved identifying key people, making sure they were included in the initial five pilots, then conducting trainings and workshops so they could own the rollout of this new tool.\u0026nbsp;\u003c/p\u003e\n\u003cp\u003eThe next step involved taking a closer look at the overall product launch strategy. While the company started with the Climate Solutions segment of its business, the goal is to complete this same process across its other two business units: Power Solutions, which makes up half of the overall business and Power Electronics and Drives, which accounts for another 30 percent. Danfoss is currently working with McKinsey in the proof-of-concept stage for its Power Electronics and Drives business as part of a two-and-a-half-year plan to roll out low carbon products across the entirety of the business. \u003c/p\u003e\n\u003cp\u003e\u0026ldquo;Achieving carbon neutrality through energy efficiency and electrification is not a transition that happens overnight or by chance,\u0026rdquo; says Kim. \u0026ldquo;Danfoss is fully committed to both having a positive climate impact and also helping our customers become more climate-friendly through their use of our products and solutions.\u0026rdquo; \u003c/p\u003e"},"isFullScreenInteractive":{"boolValue":false},"hideStickySocialShareBar":{"boolValue":false},"desktopID":{"value":""},"mobileID":{"value":""},"desktopURL":{"value":""},"mobileURL":{"value":""},"desktopPaddingPercentage":{"value":""},"mobilePaddingPercentage":{"value":""},"desktopOverrideHeight":{"value":""},"mobileOverrideHeight":{"value":""},"cerosOembedURL":{"value":""},"cerosRenderMode":{"targetItem":null},"cerosBackgroundColor":{"targetItem":null},"hideByLine":{"boolValue":false},"tableOfContentsTitle":{"value":"TABLE OF CONTENTS"},"accessStatus":{"targetItem":{"key":{"value":"AllUsers"},"value":{"value":"All Users"}}},"articleType":{"targetItem":{"displayName":"Case Study"}},"hasSpecialReport":{"boolValue":false},"contentType":{"targetItem":{"displayName":"Case Study"}},"sourcePublication":{"targetItem":null},"externalPublication":{"value":""},"mobileReady":{"boolValue":false},"forClientsOnly":{"boolValue":false},"excludeFromClientLink":{"boolValue":false},"originalPublishDate":{"jsonValue":{"value":"2023-01-17T20:49:00Z"}},"footnotes":{"value":""},"contributoryPractice":{"targetItems":[]},"aboutTheAuthors":{"value":""},"authors":{"targetItems":[]},"nonPartnerAuthors":{"targetItems":[]},"interactiveToUse":{"targetItem":null},"enableArticleComponents":{"boolValue":false},"relatedArticles":{"targetItems":[{"sourcePublication":{"targetItem":null},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"Undaunted by global disruption, a logistics company embraces bold transformation"},"url":{"path":"/industries/travel-logistics-and-infrastructure/how-we-help-clients/undaunted-by-global-disruption-a-logistics-company-embraces-bold-transformation"},"eyebrow":{"targetItem":{"name":"Case Study"}},"articleType":{"targetItem":{"name":"Case Study"}},"contentType":{"targetItem":{"name":"Case Study"}},"description":{"value":"ECU Worldwide, one of the largest less-than-container-load shipping companies in the world, chose to innovate during the COVID-19 pandemic, working with McKinsey to become tech enabled and revamp its organizational structure."},"standardImage":{"src":"/~/media/mckinsey/features/case study 4/ecu-page-thumb_1536x1536.jpg","alt":"How a logistics company digitally transformed amidst a global supply chain crisis"},"heroImage":null,"thumbnailImage":null},{"sourcePublication":{"targetItem":null},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"An AI power play: Fueling the next wave of innovation in the energy sector"},"url":{"path":"/capabilities/mckinsey-digital/how-we-help-clients/an-ai-power-play-fueling-the-next-wave-of-innovation-in-the-energy-sector"},"eyebrow":{"targetItem":{"name":"Case Study"}},"articleType":{"targetItem":{"name":"Case Study"}},"contentType":{"targetItem":{"name":"Case Study"}},"description":{"value":"How Vistra Corp. is partnering with McKinsey to improve efficiency and reduce emissions by using AI."},"standardImage":{"src":"/~/media/mckinsey/business functions/mckinsey digital/how we help clients/inside an ai power play/vistra_thumb2_728920875_1536x1536.jpg","alt":""},"heroImage":null,"thumbnailImage":null},{"sourcePublication":{"targetItem":null},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"How a manufacturing moonshot was made"},"url":{"path":"/capabilities/operations/how-we-help-clients/a-manufacturing-moonshot"},"eyebrow":{"targetItem":{"name":"Case Study"}},"articleType":{"targetItem":{"name":"Case Study"}},"contentType":{"targetItem":{"name":"Case Study"}},"description":{"value":"During COVID-19, the global respiratory medical-device pioneer Vyaire faced an extraordinary demand situation. 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