Climate Change Data

Merck KGaA

Climate Impact & Sustainability Data (2019, 2021, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:665,000 metric tons of CO2 equivalents
Scope 1 Emissions:359 metric kilotons of CO2eq
Scope 2 Emissions:306 metric kilotons of CO2eq
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,240 GWh
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Global Health
  • Sustainable Solutions
  • Broad Minds

Environmental Achievements

  • Reduced total direct and indirect greenhouse gas emissions by around 15% compared with 2006, despite business growth.
  • Lowered water consumption at relevant sites by 21% compared with 2014.
  • Recycled almost 4,200 metric tons of customer products from 2015 to 2019 (1,500 tons in 2019 alone).

Social Achievements

  • Launched Medical Innovation Program (MIP) for human reproduction.
  • Donated over 233 million praziquantel tablets for schistosomiasis treatment in 35 countries.
  • SPARK volunteer program: nearly 2,300 employees volunteered nearly 19,400 hours, engaging some 66,500 young minds.

Governance Achievements

  • Maintained Gold status from EcoVadis for sustainability engagement.
  • Listed on numerous sustainability indices (FTSE4Good, STOXX Global ESG Leaders, Euronext Vigeo, Ethibel Sustainability Index).

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce the environmental impact of waste by 5% by 2025 (2016 baseline).
  • Achieve additional annual sales of at least €2 billion with new medicines by 2022.
  • Life Science annual growth of 5% to 8% per year in the mid-term.
Short-term Goals:
  • Reduce total direct and indirect greenhouse gas emissions by 20% by 2020 (2006 baseline).
  • Implement sustainable water management system at sites with high consumption levels by 2020.
  • Cut water consumption by 10% by 2020 at sites in areas of high water stress (2014 baseline).

Environmental Challenges

  • Increased competition from rival products (biosimilars and generics) in Healthcare.
  • Cyclical business fluctuations and changes in customer technologies in Life Science and Performance Materials.
  • Stricter regulations for drug pricing and reimbursement in Healthcare.
  • Weaker demand from the automotive industry in Performance Materials.
Mitigation Strategies
  • Close customer relationships and in-house further developments.
  • Precise market analyses and market proximity.
  • Close communication with health and regulatory authorities.
  • Streamlined cost-base and processes in Performance Materials.
  • Alternative sourcing strategies and inventory management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Responsible Sourcing Principles (derived from ILO core labor standards and UN Global Compact).

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters (floods, earthquakes)
Transition Risks
  • Stricter regulations for manufacturing, testing, and marketing of products.
Opportunities
  • Liquid crystal windows (LCWs) for energy efficiency.
  • OLED materials for high-quality displays.

Reporting Standards

Frameworks Used: UN Global Compact, Responsible Care Global Charter

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 3 (Good Health and Well-being)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 13 (Climate Action)

Not disclosed

Sustainable Products & Innovation

  • Bio-based solvent Cyrene™; greener alternatives to conventional products; sustainable packaging strategy (SMASH).

Awards & Recognition

  • EcoVadis Gold status; BioInformatics Life Science Industry Award; INTERPHEX Exhibitor Award; Pittcon Heritage Award; R&D 100 Award.

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1,843,000 tCO2e/year (Scope 1+2)
Scope 1 Emissions:1,522,000 tCO2e/year
Scope 2 Emissions:321,000 tCO2e/year (market-based)
Scope 3 Emissions:5,716,000 tCO2e/year
Renewable Energy Share:30% of total energy use
Total Energy Consumption:2,454 GWh/year
Water Consumption:13.4 million m3/year
Waste Generated:213,000 tons/year
Carbon Intensity:0.09 kg CO2eq/€ of net sales (Scope 1+2)

ESG Focus Areas

  • Climate neutrality
  • Sustainability integration into value chains
  • Human progress through sustainable science and technology

Environmental Achievements

  • Reduced greenhouse gas emissions (Scope 1+2) by 9% compared to the previous year.
  • Increased renewable energy share in electricity purchased from 27% to 30%.
  • Fully powered Brazilian sites by renewables for the first time.

Social Achievements

  • Provided 182 million praziquantel tablets to the WHO to treat schistosomiasis.
  • Increased percentage of females in leadership roles from 35% to 36%.
  • Announced intention to achieve gender parity in all leadership positions worldwide by 2030.

Governance Achievements

  • Continued participation in the UN Global Compact.
  • Adherence to Responsible Care® Global Charter.
  • Membership in Together for Sustainability (TfS) and Pharmaceutical Supply Chain Initiative (PSCI).

Climate Goals & Targets

Long-term Goals:
  • Achieve climate-neutral operations across the entire value chain by 2040.
Medium-term Goals:
  • Achieve 80% renewable energy in electricity purchased by 2030.
  • Reduce Scope 3 emissions by 1,500 metric kilotons of CO2eq by 2030.
Short-term Goals:
  • Reduce greenhouse gas emissions (Scope 1+2) by 50% by 2030 (2020 baseline).
  • Reduce water intensity score by 10% by 2025 (2020 baseline).
  • Reduce waste score by 5% by 2025 (2016 baseline).

Environmental Challenges

  • Climate change, resource scarcity, unequal access to healthcare.
  • Supply chain disruptions due to the COVID-19 pandemic.
  • Increasing relevance of tax matters to stakeholders.
Mitigation Strategies
  • Implementation of business continuity plans.
  • Active management of stocks and assessment of alternative transportation routes.
  • Joining the Science-Based Targets initiative.
  • Development of a Sustainable Business Value (SBV) method.
  • Supplier Decarbonization Program.

Supply Chain Management

Supplier Audits: 882 suppliers completed a new or re-assessment in 2021 through TfS; 58 vendor audits performed (19 on-site, 39 virtual).

Responsible Procurement
  • Responsible Sourcing Principles
  • Responsible Minerals Sourcing Charter
  • Supplier Decarbonization Program
  • Together for Sustainability (TfS) membership

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 50001 (14 sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 3
  • SDG 8
  • SDG 9
  • SDG 12
  • SDG 17

The report details how Merck's activities contribute to these SDGs through various initiatives and projects.

Sustainable Products & Innovation

  • Cyrene™ solvent
  • bio-based laboratory chemicals
  • Milli-Q® water purification systems
  • Stericup®E sterile filtration system
  • next-generation colloidal silica products
  • green cleaning solvents
  • eyrise® dynamic liquid crystal glazing

Awards & Recognition

  • Corporate Digital Responsibility Award (BVDW and Bayern Innovative)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:8,283,000
Scope 1 Emissions:1,425,000
Scope 2 Emissions:242,000
Scope 3 Emissions:6,616,000
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced Scope 1 and 2 emissions by 17% (343,000 tCO2e) against the 2020 baseline by the end of 2022.
  • Around 3,000 metric tons of CO2eq reduced at Darmstadt site in 2022 through energy efficiency initiatives.
  • Installation of 700 kW solar PV system in Darmstadt and 100 kW in Bangalore.
  • 30-year land lease agreement for a 2,250 kW solar PV system in Sheboygan, Wisconsin.
  • Double-digit percentage point Scope 1 emissions reductions at several Healthcare sites (Vevey, Aubonne, Ivrea).

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2045
Medium-term Goals:
  • Achieve climate-neutral operations throughout the entire value chain by 2040.
Short-term Goals:
  • Lower direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions by 50% compared to 2020 by 2030.
  • Cover 80% of purchased electricity with renewables by 2030.
  • Reduce Scope 3 emissions by 52% (per euro of gross profit) by 2030.

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Decarbonization Programme

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GHG Reporting Protocol

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Renewable Energy Share:>50% (2023)

ESG Focus Areas

  • Climate change and emissions
  • Water and resource intensity
  • Sustainable innovations and technologies for our customers
  • Impact of our products on health and wellbeing
  • Sustainability in our ways of working & decision-making
  • Our people and communities; providing a diverse and inclusive environment
  • Sustainable and transparent supply chain

Environmental Achievements

  • Reduced direct (scope 1) and indirect (scope 2) greenhouse gas emissions by nearly 17% compared with the previous year.
  • Obtained more than half of our electricity purchased worldwide from renewable sources for the first time.
  • Added 637 Greener Alternative Products to our portfolio.

Social Achievements

  • Increased the percentage of women in leadership positions worldwide to a record high of 39%.
  • Served more than 57 million patients in low- and middle-income countries with our healthcare portfolio.
  • Reached around 84 million patients with praziquantel tablets.

Governance Achievements

  • Implemented a new workflow-based process for third-party risk management.
  • Launched a new Whistleblowing and Investigations Standard.
  • Introduced a new Supplier Code of Conduct.

Climate Goals & Targets

Long-term Goals:
  • Achieve climate neutrality by 2040
Medium-term Goals:
  • Achieve 80% renewable electricity by 2030
  • Reduce Scope 1 and 2 emissions by 50% by 2030 (2020 baseline)
  • Reduce Scope 3 emissions by 52% by 2030 (relative to gross profit)
  • Achieve 70% circularity rate by 2030
  • Provide sufficient praziquantel tablets to treat more than 90 million patients per year by 2030
Short-term Goals:
  • Reduce water consumption by 50% by 2030 (compared to 2020)
  • Improve water efficiency in manufacturing sites by 10% by 2025
  • Reduce the environmental impact of waste by 5% by 2025 (compared to 2016)
  • Bring LTI below 1.0 by 2025

Environmental Challenges

  • Supply chain disruptions
  • Climate change
  • International conflicts and economic crises
  • Data-related risks
  • Compliance-related risks
  • Human rights risks in the supply chain
  • Animal welfare concerns related to necessary testing
Mitigation Strategies
  • Supplier decarbonization program
  • Renewable energy sourcing
  • Sustainable packaging initiatives (Mpact, SMASH)
  • Third-party risk management process
  • Compliance training and programs
  • Human rights due diligence program
  • 4Rs for animal-based research (replacement, reduction, refinement, and responsibility), and efforts to phase out animal use.

Supply Chain Management

Supplier Audits: 66% of relevant suppliers covered by a valid sustainability assessment (2023)

Responsible Procurement
  • Supplier Code of Conduct
  • Responsible Minerals Sourcing Charter
  • Together for Sustainability (TfS) network
  • Pharmaceutical Supply Chain Initiative (PSCI)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 8
  • SDG 9
  • SDG 12
  • SDG 13
  • SDG 17

The company's sustainability strategy focuses on these SDGs through entrepreneurial actions.

Sustainable Products & Innovation

  • Greener Alternative Products
  • Bio-based solvents (Cyrene™)
  • Molded pulp packaging
  • NMP-free removers
  • PFAS replacement products
  • Dynamic liquid crystal glazing (eyrise®)

Awards & Recognition

  • Bioethics International Gold Badge