Merck
For more than a century, Merck, a leading global biopharmaceutical company known as MSD outside of the United States and Canada, has been inventing for life, bringing forward medicines and vaccines for many of the world's most challenging diseases. Through our prescription medicines, vaccines, biologic therapies and animal health products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to health care through far-reaching policies, programs and partnerships.

Purpose

Today, Merck continues to be at the forefront of research to advance the prevention and treatment of diseases that threaten people and communities around the world – including cancer, cardio-metabolic diseases, emerging animal diseases, Alzheimer's disease and infectious diseases including HIV and Ebola. For more information, visit www.merck.com and connect with us on Twitter, Facebook, Instagram, YouTube and LinkedIn.

Robert Davis

Chairman and CEO, Merck

Find out more

We believe it is vital to state clearly to the world the set of our beliefs about Inclusive Capitalism. As such, we start with our Statement of Guiding Principles for Inclusive Capitalism. Knowing that words alone are not enough, each of us is making a series of commitments about how we will operate our institutions so that they help achieve Inclusive Capitalism. These commitments are forward-looking statements based on current goals, expectations and assumptions, which are not guarantees of future performance. For more information, please refer to our Terms of Use

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Summary

Increased representation in senior management roles, by 2024: Hispanics/Latinos in the U.S. to 10% up from 5% in 2020.

Activities & Initiatives

We also focus on systemic barriers that limit the candidate pool based on geographic location of open positions and talent residency, and on job prerequisites of having prior pharmaceutical experience. To broaden our access to diverse talent, we post some positions with an option to work virtually, offer relocation services and are agnostic about prior pharmaceutical experience. (p.19) Diverse Leader Program (U.S. only) This thought-provoking nomination program is an interactive leadership journey designed to create a safe place where participants can hone their leadership skills while exploring what it means to be a person of color in a leadership role within the Company. While building leadership proficiency, participants investigate the similarities and differences of leaders from other racial and ethnic groups. There are scheduled opportunities to deepen relationships with senior leaders through engaging activities and conversations. (p. 145).

Measures & Targets

Increase representation in senior management roles, by 2024: Hispanics/Latinos in the U.S. to 10%, up from 5% in 2020

Progress as of 12/31/21: 6% Hispanics/Latinos in senior management roles in the U.S.

SDG Focus Area(s):

Summary

Our global water strategy aims to achieve sustainable water management within our operations and our supply chain. By 2025, we will maintain global water use at or below 2015 levels.

Activities & Initiatives

To achieve these strategic objectives, we are focusing on the following commitments:
  • Ensuring that our wastewater discharges comply with local and
  • national standards, as well as internal requirements
  • Understanding and controlling our operational water footprint
  • Managing water risk at our facilities and in our supply chain
Reporting publicly on our water use and goals In our Business Partner Code of Conduct, we request that suppliers conserve natural resources and engage in activities aimed at reducing water usage. We also ask that they have systems in place to quantify the amount of water used.

Measures & Targets

By 2025, will maintain global water use at or below 2015 levels.

Progress: 3.6 million m3 below 2015 levels. (16% reduction) as of 12/31/21.

SDG Focus Area(s):

Summary

Achieve carbon neutrality across operations by 2025 (Scopes 1&2 emissions) .

Activities & Initiatives

Our environmental sustainability strategy has three focus areas:
  • Driving operational efficiency
  • Designing new products to minimize environmental impact
  • Reducing any impacts in our upstream and downstream value chain
A primary focus in each of these areas is on climate action. In last year’s report, we established climate goals to meet and exceed the evolving expectations of our stakeholders and employees In 2021, our Scopes 1 & 2 and Scope 3 reduction targets were verified by the Science-Based Targets initiative (SBTi). (p. 21).

Measures & Targets

Achieve carbon neutrality across operations by 2025 (Scopes 1 & 2 emissions).

Progress as of 12/31/21: In progress. Any remaining emissions will be offset with high-quality offsets in 2025.

SDG Focus Area(s):

Summary

Reduce company's value chain (scope 3) GHG emissions by 30% by 2030, from a 2019 baseline.

Activities & Initiatives

Our environmental sustainability strategy has three focus areas:
  • Driving operational efficiency
  • Designing new products to minimize environmental impact
  • Reducing any impacts in our upstream and downstream value chai
A primary focus in each of these areas is on climate action. In last year’s report, we established climate goals to meet and exceed the evolving expectations of our stakeholders and employees. In 2021, our Scopes 1 & 2 and Scope 3 reduction targets were verified by the Science-Based Targets initiative (SBTi). (p. 21)

Measures & Targets

Reduce value chain (Scope 3) GHG emissions by 30% by 2030, from a 2019 baseline.

Progress: 9% increase in Scope 3 emissions from 2019 baseline

SDG Focus Area(s):

Summary

By 2025, at least 50% of our sites will send zero waste to landfills..

Activities & Initiatives

The amount of waste we generate reflects the efficiency of our manufacturing processes. Operational waste is primarily generated from the following activities:
  • Manufacturing
  • Packaging
  • On-site wastewater treatment
  • Research
Waste minimization begins with the upfront evaluation of our product designs and manufacturing processes. Through our Green and Sustainable Science program, we design processes that use safer chemicals, consume less energy, use less water and other resources, and generate less waste. Our process development biologists, chemists and engineers have the expertise to create more sustainable ways to make our products. We continuously strive to reduce the amount of operational waste we generate and to maximize the use of environmentally beneficial disposal methods such as recycling, composting and waste-to-energy. To ensure our waste is managed in an environmentally responsible manner, we use only approved waste disposal facilities. Approved facilities demonstrate that they have the systems, technologies and practices to manage our waste streams responsibly and in compliance with all applicable requirements. We routinely audit these facilities to verify the acceptability of their systems and practices. (p, 111).

Measures & Targets

By 2025, at least 50% of sites will send zero waste to landfills.

Progress: In 2021, 52% of sites sent zero waste to landfill.

SDG Focus Area(s):

Summary

By 2025, no more than 20% of our global operational waste will be sent to landfills and incinerators (without energy recovery).

Activities & Initiatives

The amount of waste we generate reflects the efficiency of our manufacturing processes. Operational waste is primarily generated from the following activities:
  • Manufacturing
  • Packaging
  • On-site wastewater treatment
  • Research
Waste minimization begins with the upfront evaluation of our product designs and manufacturing processes. Through our Green and Sustainable Science program, we design processes that use safer chemicals, consume less energy, use less water and other resources, and generate less waste. Our process development biologists, chemists and engineers have the expertise to create more sustainable ways to make our products. We continuously strive to reduce the amount of operational waste we generate and to maximize the use of environmentally beneficial disposal methods such as recycling, composting and waste-to-energy. To ensure our waste is managed in an environmentally responsible manner, we use only approved waste disposal facilities. Approved facilities demonstrate that they have the systems, technologies and practices to manage our waste streams responsibly and in compliance with all applicable requirements. We routinely audit these facilities to verify the acceptability of their systems and practices. (p. 111).

Measures & Targets

By 2025, no more than 20% of our global operational waste will be sent to landfills and incinerators
without energy recovery).

In 2021, 33% of operational waste was sent to landfill and incinerators (without energy recovery).

SDG Focus Area(s):

Summary

We create economic opportunities for underrepresented communities by procuring products and services from minority-; women-; veteran-; lesbian-, gay-, bisexual- and transgender- (LGBT); and disability-owned enterprises.

Activities & Initiatives

Economic Inclusion & Supplier Diversity (EI&SD)  is the epicenter of our Company’s diverse and inclusive procurement practices. We create economic opportunities for underrepresented communities by procuring products and services from minority-; women-; veteran-; lesbian-, gay-, bisexual- and transgender- (LGBT); and disability-owned enterprises. Our goals go beyond the amount of dollars we spend with small and diverse-owned businesses, as we focus on the growth and development of our suppliers to drive economic impact and value delivery to our Company. We are committed to supporting the small and diverse businesses that are the economic engine of growth around the world through global economic inclusion. (p. 75)

Measures & Targets

Our goals go beyond the amount of dollars we spend with small and diverse-owned businesses, as we focus on the growth and development of our suppliers to drive economic impact and value delivery to our Company. We are committed to supporting the small and diverse businesses that are the economic engine of growth around the world through global economic inclusion. (p. 75)  2021: Diverse-supplier spend: Global ($2.858 M); Diverse-supplier U.S. ($2.374 M); Small-business spend U.S. ($1.027M) (p. 76)

Our ongoing economic inclusion and supplier diversity efforts will enable us to continue our membership in the Billion Dollar Roundtable (BDR), an exclusive industry organization that recognizes and celebrates corporations that achieved spending at least $1 billion with diverse suppliers headquartered in the U.S. and globally. Our membership in the BDR allows us to share and access best practices in supply chain diversity excellence with other organizations that have also achieved this status. (p. 156).

SDG Focus Area(s):

Summary

Further advance health equity by reaching 30 million people in low- and middle-income countries and in U.S. underserved populations with our social investments, by 2025.

Activities & Initiatives

Our approach to expanding access and patient reach is built on the belief that broadening our impact requires sustained effort and is best achieved through solving underlying health care system challenges. We have a long history of partnering to strengthen health systems and address health equity. Since 1957, our Company’s Foundation has contributed nearly $1 billion to support programs that address important global health and societal needs. (p. 17).

Measures & Targets

Further advance health equity by reaching 30 million people in low- and middle-income countries and in U.S. underserved populations with our social investments, by 2025.

Progress: 15 million people reached as of 12/31/21

SDG Focus Area(s):

Summary

Enable 100 million more people to access our innovative portfolio globally, through access strategies, solutions and partnerships, by 2025.

Activities & Initiatives

Measures & Targets

Enable 100 million more people to access our innovative portfolio globally, through access strategies, solutions and partnerships, by 2025.

Progress: Enabled access for 66.7 million people as of 12/31/21

SDG Focus Area(s):

Summary

Reach at least 75% of countries around the world annually with our products.

Activities & Initiatives

Merck makes available a reliable, safe global supply of quality medicines and vaccines, and invests in solutions to enable timely access to our products in a responsible and sustainable manner. We have strict quality standards and effective supply chain management to ensure the safety and security of our products, no matter where they are manufactured. (p.15).

Measures & Targets

Reach at least 75% of countries around the world annually with our products.

Progress: 79% of countries were reached in 2021.

SDG Focus Area(s):

Summary

Reduce our operational greenhouse gas (GHG) emissions (Scope 1&2) 46% by 2030, from a 2019 baseline.

Activities & Initiatives

Our Company has a long history of environmental stewardship and compliance, and we realize that our strategy and efforts need to continuously evolve in the face of a changing climate. Our environmental sustainability strategy has three focus areas:
  • Driving operational efficiency
  • Designing new products to minimize environmental impact
  • Reducing any impacts in our upstream and downstream value chain
A primary focus in each of these areas is on climate action. In last year’s report, we established climate goals to meet and exceed the evolving expectations of our stakeholders and employees. In 2021, our Scopes 1 & 2 and Scope 3 reduction targets were verified by the Science-Based Targets initiative (SBTi). (p.21).

Measures & Targets

Reduce our operational greenhouse gas (GHG) emissions (Scope 1&2) 46% by 2030, from a 2019 baseline.

Progress: 9% reduction in Scope 1 and 2 emissions from 2019 baseline as of 12/31/21

 

SDG Focus Area(s):

Summary

Source 100% of our purchased electricity from renewables by 2025.

Activities & Initiatives

Our Company has a long history of environmental stewardship and compliance, and we realize that our strategy and efforts need to continuously evolve in the face of a changing climate. Our environmental sustainability strategy has three focus areas:
  • Driving operational efficiency
  • Designing new products to minimize environmental impact
  • Reducing any impacts in our upstream and downstream value chain
A primary focus in each of these areas is on climate action. In last year’s report, we established climate goals to meet and exceed the evolving expectations of our stakeholders and employees. In 2021, our Scopes 1 & 2 and Scope 3 reduction targets were verified by the Science-Based Targets initiative (SBTi). (p.21).

Measures & Targets

Source 100% of our purchased elecricity from renewables by 2025.

Progress: 41% of purchased elecricity sourced from renewables in 2021.

SDG Focus Area(s):

Summary

Maintain 100% compliance to regulatory requirements for active incident monitoring, risk/harm analysis and on-time notification of data breaches.

Activities & Initiatives

We recognize that cybersecurity events and innovative uses of data pose an increased risk to our business and stakeholders. In response, we are continually refining our global privacy program, which is designed to promote organizational accountability for privacy, data governance and data protection across our business and with our collaborative partners and suppliers. (p. 24).

Measures & Targets

Maintain 100% compliance to regulatory requirements for active incident monitoring, risk/harm analysis and on-time notification of data breaches.

Progress: 100% compliance maintained in 2021.

SDG Focus Area(s):

Summary

Increased representation in senior management roles, by 2024: Black/African Americans (in the U.S) to 10% up from 3% in 2020.

Activities & Initiatives

In the past year, we greatly expanded outreach to Historically Black Colleges and Universities (HBCUs) by partnering with several organizations, including the College Diversity Network and the National Urban League, to focus on building deep partnerships with colleges, students, faculty and alumni of HBCUs. We also focus on systemic barriers that limit the candidate pool based on geographic location of open positions and talent, residency, and on job prerequisites of having prior pharmaceutical experience. To broaden our access to diverse talent, we post some positions with an option to work virtually, offer relocation services and are agnostic about prior pharmaceutical experience. (p.19) Diverse Leader Program (U.S. only)This thought-provoking nomination program is an interactive leadership journey designed to create a safe place where participants can hone their leadership skills while exploring what it means to be a person of color in a leadership role within the Company. While building leadership proficiency, participants investigate the similarities and differences of leaders from other racial and ethnic groups. There are scheduled opportunities to deepen relationships with senior leaders through engaging activities and conversations. (p. 145)

Measures & Targets

Increase representation in senior management roles, by 2024: Black/African Americans in the U.S. to 10%, up from 3% in 2020.

Progress as of 12/31/21: 7% Black/African Americans in senior management roles in the U.S.

SDG Focus Area(s):

Summary

Increased representation in senior management roles, by 2024: Women globally to 40%, up from 31% in 2020.

Activities & Initiatives

The success of our Company is built on a culture that embraces different perspectives and values the contributions of each individual, and we recognize that our competitiveness is strengthened by a diverse, skilled and engaged workforce. We take a thoughtful approach to workplace inclusion and belonging. Our Company invests in employee development and wellbeing. These investments are guided by our global diversity and inclusion strategy as well as our Pulse survey, which is conducted multiple times a year. (p.18) The Women’s Leadership program is a global nomination program focused on enhancing women’s capabilities to recognize and seize strategic career opportunities by developing critical capabilities and confidence while contributing to core objectives of our Company. Areas of focus include strengthening the ability to navigate within the organization while maintaining an authentic leadership style, increasing cultural competence regionally, advancing skills in influence and negotiations, increasing one’s ability to recognize and manage gender differences and subtle “micro-inequities” by leading through courageous action. (p. 145)

Measures & Targets

Increased representation in senior management roles, by 2024: Women globally to 40%, up from 31% in 2020

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Recognizing it will take alignment of all our organizations to scale impact globally, we invite you to join the movement as a Steward of Inclusive Capitalism. Together, the collective action of Council members will contribute to a fairer, more inclusive and sustainable future for all people and our planet.