Climate Change Data

Merit Medical Systems, Inc.

Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Wellness, Health & Safety
  • Compliance & Ethics
  • Environmental Sustainability
  • Diversity & Talent
  • Philanthropy
  • Quality Assurance

Environmental Achievements

  • Scrape Your Plate program diverted food waste, preventing 1.7 metric tons of CO2 emissions.
  • MeritSmart™ Shipping reduced corrugated boxes and plastic bubble wrap by over 100 tons.
  • eWORQ program estimated to save 2.8 million sheets of paper and 20,000 plastic sleeves annually.
  • Reduced blister packs and film thickness in several products, saving over 20 tons of plastic per year.
  • Implemented reusable universal transport trays, avoiding over 1,600 disposable trays per month.
  • Electric vehicle charging stations prevented 7,785 kg of GHG emissions.
  • Merit Tijuana uses propane-powered buses, reducing emissions by approximately 15% compared to diesel.

Social Achievements

  • Added the position of Chief Wellness Officer (CWO).
  • Launched 90-day Wellness Challenge with an average weight loss of 16 pounds per employee.
  • Expanded wellness programs in Tijuana and Galway.
  • Operates on-site health clinics at Salt Lake City and Tijuana.
  • Operates a free on-site employee dental clinic at Salt Lake City.
  • Five consecutive years of zero increases to employee health insurance premiums.
  • Introduced Spanish-Speaking Production Lines at Merit Salt Lake City.
  • Celebrates employee service milestones with yearbooks.
  • Partners with local school system in Tijuana to provide on-site education opportunities.
  • Sponsored annual Kid-to-Work Day.
  • Hosted Back-to-School Fair in Tijuana.
  • Partnered with Dress for Success Dublin to promote gender equality.

Governance Achievements

  • Maintains ethical and responsible policies and practices.
  • Compliance and anti-corruption policies ensure interactions with medical professionals benefit patients.
  • Compliance is monitored by the Chief Compliance Officer, reporting to a Compliance Committee and the Board of Directors.
  • Provided over $400,000 in unrestricted educational grants.
  • Conducted a country-of-origin inquiry regarding conflict minerals.

Climate Goals & Targets

Environmental Challenges

  • Environmental impact of single-use plastic medical products.
  • Reducing greenhouse gas emissions.
  • Attracting, developing, and retaining top talent.
Mitigation Strategies
  • Increased recycling and reuse programs.
  • Implemented sustainable energy programs (e.g., Blue Sky program, electric vehicle charging stations).
  • Implemented programs to reduce emissions (e.g., Scrape Your Plate, propane-powered buses).
  • Integrated diversity and inclusion strategies into business, recruitment, and internal initiatives.

Supply Chain Management

Supplier Audits: 57 supplier audits in 2019

Responsible Procurement
  • Partnering with suppliers that have sustainability goals (e.g., FSC-certified supplier).

Climate-Related Risks & Opportunities

Awards & Recognition

  • Shingo Prize (Merit Tijuana)
  • 2019 Healthcare Heroes Award (Shingo Institute)
  • 2019 Sustainability Leadership Award (Utah Business Magazine)
  • 2019 A Giant in our City (Business Intelligence Group)
  • 2019 Green Business Award (Salt Lake Chamber)
  • 2019 Manufacturer of the Year (Utah Business Magazine)
  • 2019 Manufacturer of the Year (Utah Manufacturers Association)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:30,764 tCO2e/year
Scope 1 Emissions:2,837 tCO2e/year
Scope 2 Emissions:17,480 tCO2e/year
Scope 3 Emissions:10,447 tCO2e/year
Renewable Energy Share:4%
Total Energy Consumption:67.2 MWh/year
Water Consumption:215,300 m3/year
Waste Generated:15,000 tons/year
Carbon Intensity:0.032 metric tons of CO2e/$1,000 revenue

ESG Focus Areas

  • COVID-19 Response
  • Enterprise Opportunity Management
  • Health & Safety
  • Diversity & Inclusion
  • Compliance & Ethics
  • Quality Assurance
  • Environmental Sustainability
  • Philanthropy

Environmental Achievements

  • Four of eight manufacturing sites achieved ISO 14001 certification.
  • Recycled more than 15,000 metric tons of waste.
  • Reduced corrugated boxes and plastic bubble wrap materials by more than 100 tons per year through Merit Smart Shipping™.

Social Achievements

  • Implemented a work-from-home policy for eligible employees.
  • Provided additional sick time (pandemic pay) for employees impacted by COVID-19.
  • Partnered with various organizations to support low-income women, single mothers, and refugees.
  • Established a Women’s Leadership Network in Merit Asia.
  • Developed Merit Asia Academy for employee skills development.
  • Partnered with NUI Galway Youth Academy and Galway Science Festival.

Governance Achievements

  • Improved grant policies and processes to ensure compliance with the US Office of Inspector General.
  • Implemented a Global Complaint Management System.
  • Deployed a Global Learning Management System.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • By 2030: 50% renewable energy, 10% reduction in energy intensity, 15% reduction in GHG emissions, 10% reduction in water intensity (all indexed to revenue).
Short-term Goals:
  • Complete ISO 45001 certifications at remaining manufacturing sites by end of 2021.
  • Achieve ISO 50001 certification at remaining large manufacturing sites by end of 2021.

Environmental Challenges

  • COVID-19 pandemic impacted operations and supply chains.
  • Water risk varies significantly by operating location.
  • Reducing GHG emissions and improving energy efficiency.
Mitigation Strategies
  • Implemented new global policies and response teams to address COVID-19.
  • Increased production of syringes for vaccine distribution.
  • Developed the Cultura™ family of products (nasopharyngeal swabs and media for PCR testing).
  • Implemented water-efficiency projects at various sites.
  • Set 2030 goals for renewable energy, energy intensity, GHG emissions, and water intensity reduction.
  • Implemented ISO 50001 certification for EMS at various sites.

Supply Chain Management

Supplier Audits: 25 audits in 2020

Responsible Procurement
  • Supplier selection based on risk assessment, regulatory compliance, supplier performance, and Merit requirements.
  • Ongoing monitoring of supplier performance.
  • Partnership with FSC-certified supplier for paperboard packaging.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Energy efficiency and renewable energy investments.

Reporting Standards

Frameworks Used: COSO Enterprise Risk Management, ISO 31000:2018, ISO 13485:2016, ISO 9001:2015, ISO 45001, ISO 14001, ISO 50001, EU MDR, ISO 14971

Certifications: ISO 13485:2016, ISO 9001:2015, MDSAP, ISO 14001 (at four manufacturing sites), ISO 50001 (at Merit Galway)

Third-party Assurance: BSi (for South Jordan, UT facility EU MDR compliance)

Sustainable Products & Innovation

  • Merit Smart Shipping™ program

Awards & Recognition

  • National Irish Safety Organization Safety Quiz 2020 (Merit Galway)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:18,200 tCO2e/year
Scope 1 Emissions:3,415 tCO2e/year
Scope 2 Emissions:14,785 tCO2e/year
Renewable Energy Share:20%
Total Energy Consumption:204,404,000 MJ/year
Water Consumption:243,299 m3/year
Waste Generated:>20,000 tons/year

ESG Focus Areas

  • Climate Change
  • Diversity, Equity & Inclusion
  • Compliance & Ethics
  • Employee Health & Safety
  • Environmental Sustainability
  • Product Quality and Innovation
  • Philanthropy

Environmental Achievements

  • Reduced GHG emissions (scope 1 and 2) by 3,202 MT of CO2e from 2020 to 2021.
  • Decreased energy intensity by 9% compared to 2020.
  • Decreased GHG emissions intensity by 24% compared to 2020.
  • Increased renewable energy usage by 15% compared to 2020.
  • Reduced water intensity by 7% compared to 2020.
  • Saved approximately 211,000 lb in eliminated packaging materials.
  • Recycled more than 20,000 MT of waste.

Social Achievements

  • Launched a global wellness program, "Get Healthy."
  • Launched North America Women’s Leadership Initiative (WLI).
  • Achieved a total recordable injury rate (TRIR) of 0.80, a significant reduction from 1.10 in 2020.
  • Maintained zero cost increases to employees for health insurance premiums for seven consecutive years.
  • Various diversity and inclusion initiatives across global locations, resulting in 34% women in management and 56% women in the global workforce.

Governance Achievements

  • Improved grant policies and processes to ensure compliance with the Corporate Integrity Agreement.
  • Enhanced systems and processes to adapt to the changing legal and regulatory landscape.
  • Conducted a country-of-origin inquiry regarding conflict minerals.

Climate Goals & Targets

Medium-term Goals:
  • By 2030: 50% renewable energy, 10% reduction in energy intensity, 15% reduction in GHG emissions (scope 1 and 2), 10% reduction in water intensity (all indexed to revenue).

Environmental Challenges

  • Climate change and its impact on global operations.
  • Water risk at several manufacturing locations.
  • Environmental impact of single-use medical devices.
  • Supply chain disruptions.
Mitigation Strategies
  • Enterprise Opportunity Management (EOM) program to assess risks and opportunities.
  • Implementation of water efficiency projects at various sites (e.g., water recirculation systems, xeriscaping).
  • Multi-year project to reduce unnecessary product packaging.
  • Increased use of renewable energy.
  • Business Continuity Management System (BCMS) to address disruptions.

Supply Chain Management

Supplier Audits: 24 audits in 2021

Responsible Procurement
  • Supplier assessments and approvals; ongoing performance monitoring; partnership with FSC-certified supplier for packaging.

Climate-Related Risks & Opportunities

Opportunities
  • Energy efficiency and renewable energy investments.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, ISO 50001 (at some sites)

Sustainable Products & Innovation

  • Smart Shipping program

Awards & Recognition

  • 2021 Green Business Award (Utah Business)
  • Stevie® Awards for Frontline Medical Hero of the Year (Dr. Nicole Priest)
  • 2021 Healthcare Hero (Fred Lampropoulos, Utah Business)
  • Top Employer China 2022 award (Merit Asia)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:16,593 MT CO2e
Scope 1 Emissions:3,069 MT CO2e
Scope 2 Emissions:13,524 MT CO2e
Renewable Energy Share:26%
Total Energy Consumption:270,273 GJ
Water Consumption:242,274 m3
Waste Generated:3,300+ MT recycled
Carbon Intensity:0.0144 MT CO2e/$KRev

ESG Focus Areas

  • Climate Change & GHG Emissions
  • Environmental Impact of Products & Services
  • Diversity, Equity & Inclusion
  • Supply Chain Management
  • Product Quality & Safety
  • Business Ethics/Code of Conduct

Environmental Achievements

  • 35% reduction in Scopes 1 and 2 GHG emissions intensity compared to 2020 baseline
  • Increased renewable energy share to 26% from 5% in 2020
  • Reduced unnecessary packaging by approximately 551,550 lbs
  • Recycled more than 3,300 MT of waste

Social Achievements

  • Launched first formal employee wellness activities calendar
  • Completed first global employee engagement survey with 83% participation
  • Created a global Inclusion and Diversity Council
  • Improved Total Recordable Incident Rate (TRIR) to 0.7 from 0.8 in 2021

Governance Achievements

  • Achieved ISO 45001 certification at all major manufacturing sites
  • Approved new iterations of 12 compliance policies
  • Developed and adopted a Field Inventory Policy in the US

Climate Goals & Targets

Medium-term Goals:
  • Decrease energy intensity by 10% by 2030
  • Decrease GHG emissions intensity by 15% by 2030
  • Decrease water intensity by 10% by 2030
  • Increase renewable energy to 50% by 2030

Environmental Challenges

  • 12% increase in energy intensity compared to 2020 baseline
  • Water scarcity risk at Tijuana, Salt Lake City, and Pearland facilities
  • Managing climate change risks and opportunities across global operations
Mitigation Strategies
  • Investing in water-efficiency initiatives (xeriscaping, water recirculation systems)
  • Developing capital expenditure plans to address future water risks in Tijuana
  • Increasing the use of renewable and carbon-free energy
  • Implementing programs to reduce emissions from transportation

Supply Chain Management

Supplier Audits: 34 audits in 2022

Responsible Procurement
  • Supplier self-assessment questionnaires on ESG initiatives
  • Management of modern slavery and conflict minerals risks

Climate-Related Risks & Opportunities

Physical Risks
  • Water scarcity
  • Extreme weather
Transition Risks
  • Regulatory changes
Opportunities
  • Increased use of renewable energy

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 50001 (five of six largest sites), ISO 45001 (all major manufacturing sites), My Green Lab (Merit Ireland R&D lab)

Sustainable Products & Innovation

  • Reviewing materials used in devices to find eco-friendly alternatives

Awards & Recognition

  • Newsweek America’s Most Responsible Companies 2023
  • Top Employer 2022: China
  • Utah Business Corporate Counsel Award
  • My Green Lab Certification: Merit Ireland R&D
  • 2022 Supplier Legacy Award (Premier Inc.)
  • Honorary Adjunct Professor (Fred Lampropoulos)
  • 2022 Manufacturing Leader of the Year (Fred Lampropoulos)
  • National Irish Safety Organization (NISO) Safety Awards: Merit Ireland

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:17,656 tCO2e/year
Scope 1 Emissions:3,072 tCO2e/year
Scope 2 Emissions:14,584 tCO2e/year
Renewable Energy Share:36%
Total Energy Consumption:273,118 GJ/year
Water Consumption:251,937 m3/year
Waste Generated:2,500 MT/year (recycled)
Carbon Intensity:0.0140 MT CO2e/$KRev

ESG Focus Areas

  • Climate Change & GHG Emissions
  • Environmental Impact of Products & Services
  • Diversity, Equity, and Inclusion
  • Product Quality & Safety
  • Supply Chain Management
  • Business Ethics/Code of Conduct

Environmental Achievements

  • Decreased energy intensity by 20% compared to 2020 baseline.
  • Decreased GHG emissions intensity (scopes 1 and 2) by 35% compared to 2020 baseline.
  • Increased renewable energy share to 36% in 2023 from 5% in 2020.
  • Decreased water intensity by 17% compared to 2020 baseline.
  • Reduced packaging materials by approximately 146,000 lbs in 2023 and 600,000 lbs since the inception of the Merit Smart Shipping initiative.
  • Recycled approximately 2,500 MT of waste in 2023.

Social Achievements

  • Maintained a Total Recordable Incident Rate (TRIR) of 0.8 in 2023, below the industry average.
  • Launched EMEA Women’s Leadership Initiative.
  • Improved employee engagement scores and participation rate compared to 2022.
  • Implemented 500+ local and a global action plan based on employee feedback.

Governance Achievements

  • Established a global Inclusion and Diversity Council.
  • Continued progress on compliance, including new iterations of compliance policies and a new escalation policy for administrative lapses.
  • Expanded compliance team in the Asia-Pacific region.

Climate Goals & Targets

Medium-term Goals:
  • Decrease energy intensity by 10% from 2020 baseline by 2030.
  • Decrease GHG emissions intensity (scopes 1 and 2) by 15% from 2020 baseline by 2030.
  • Increase renewable energy to 50% of total usage by 2030.
  • Decrease water intensity by 10% from 2020 baseline by 2030.

Environmental Challenges

  • Climate-related risks such as drought, severe storms, and rising costs of energy and materials.
  • Transition risks from policies affecting other sectors, carbon pricing, and potential litigation.
  • Water scarcity at manufacturing locations in Tijuana, Mexico; Salt Lake City, Utah; and Pearland, Texas.
Mitigation Strategies
  • Investment in infrastructure resilience and supply chain redundancy.
  • Implementation of water-reduction and efficiency projects (e.g., xeriscaping, water recirculation systems).
  • Use of the Water Risk Filter to understand basin water risk.
  • Engagement with energy providers to purchase more renewable energy.
  • Exploration of carbon offset credits.
  • Business Continuity and Crisis Management System (BCMS).

Supply Chain Management

Supplier Audits: 46 audits in 2023

Responsible Procurement
  • Supplier selection, qualification, and monitoring based on risk.
  • Partnership with Sedex to improve supply chain sustainability.

Climate-Related Risks & Opportunities

Physical Risks
  • Drought
  • Severe storms
Transition Risks
  • Rising costs of energy and materials
  • Carbon pricing
  • New regulations
Opportunities
  • Efficient recovery from natural disasters
  • Competitive advantage through CAPEX investments in resilience
  • Development of climate-friendly medical technology

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001

Sustainable Products & Innovation

  • Review of materials used in devices to find eco-friendly alternatives.

Awards & Recognition

  • Barron’s 100 Most Sustainable US Companies 2024
  • Top Employer 2023: China
  • 100 Companies Inspiring Women
  • Utah Business CXO of the Year and CHRO of the Year
  • Top 50 Women Leaders of Salt Lake City 2023
  • National Irish Safety Organization Safety Awards: Best MedTech Company for High Achiever Award