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

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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

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 (Impact Report 2022/2023 pg. 92)

Measures & Targets

By 2025, will maintain global water use at or below 2015 levels. Progress as of 12/31/22: 17% reduction in water use as compared to 2015 baseline

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

Scientific data supports that climate change is occurring, and we are taking action to reduce the economic and public health risks associated with a changing climate. We have adopted a set of climate goals to help position our Company to succeed in an increasingly resource-constrained world. These goals were developed to align with the latest climate science and address the rising expectations of our customers, investors, external stakeholders and employees regarding the environmental impact of our operations and supply chain. Our Company has also committed to the Science Based Targets initiative (SBTi) to set a net-zero target for our greenhouse gas (GHG) emissions across our global operations (Scopes 1, 2, 3). (2022/2023 Impact Report pg. 27)

A primary focus in each of these areas is on climate action. In last year’s Impact 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). (2022/2023 Impact Report pg. 27)

Measures & Targets

Achieve carbon neutrality across operations by 2025 (Scopes 1 & 2 emissions). Progress as of 12/31/22: 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 chain

Scientific data supports that climate change is occurring, and we are taking action to reduce the economic and public health risks associated with a changing climate. We have adopted a set of climate goals to help position our Company to succeed in an increasingly resource-constrained world. These goals were developed to align with the latest climate science and address the rising expectations of our customers, investors, external stakeholders and employees regarding the environmental impact of our operations and supply chain. Our Company has also committed to the Science Based Targets initiative (SBTi) to set a net-zero target for our greenhouse gas (GHG) emissions across our global operations (Scopes 1, 2, 3). (Impact Report 2022/2023 pg. 27)

Measures & Targets

Reduce value chain (Scope 3) GHG emissions by 30% by 2030, from a 2019 baseline. Progress: 6% increase in Scope 3 emissions from 2019 baseline as of 12/31/22.

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 evaluation of our product designs and manufacturing processes. Through our Green & Sustainable Science program (see GRI 301 on page 84), 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. (2022/2023 Impact Report pg. 107) 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. (2022/2023 Impact Report p. 111; pg. 107)

Measures & Targets

By 2025, at least 50% of sites will send zero waste to landfills. Progress: In 2022, 49% 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 evaluation of our product designs and manufacturing processes. Through our Green & Sustainable Science program (see GRI 301 on page 84), 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. (2022/2023 Impact Report pg. 107) 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. (2022/2023 Impact Report p. 111; pg. 107)

Measures & Targets

By 2025, no more than 20% of our global operational waste will be sent to landfills and incinerators without energy recovery). In 2022, 16% of operational waste was sent to landfill and incinerators (without energy recovery).

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

In 2022, we invested $38 million in social investments to address health equity. Our social investments help advance health equity around the world by addressing the barriers that many individuals face in seeking and receiving high-quality health care. We provide support in several ways, including through key initiatives like Merck for Mothers, health equity initiatives, and our impact investments. Our Foundation is funded entirely by our Company and is our chief source of financial support for qualified, eligible nonprofit organizations whose programs align with our philanthropic priorities. To drive continued action, we have increased this health equity goal to now reach 50 million people by 2025. We’re now including underserved populations in high-income countries beyond the U.S. in this goal as our health equity investments evolve to meet the needs of underserved populations everywhere.(2022/2023 Impact Report pg. 21)

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: 18.6 million people reached from 12/31/21 to 12/31/22. Total number of people reached to date: 33.6 million.

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

We build on our legacy of putting patients first by inventing medicines and vaccines to address unmet medical need, including for conditions with high global burden of disease. As part of our R&D strategy, we evaluate our candidates early for their potential to address significant public health concerns in underserved settings, including LMICs. Our research pipeline, products which we currently market, and our external collaborations seek to address 83 percent of the world’s top health burdens, including some that primarily affect LMICs. For example, our investigational vaccine for dengue fever is currently in a Phase 2 trial. With approximately half of the world’s population, or four billion people, at risk for dengue disease, dengue is a critical public health challenge. Annually, there are an estimated 105 million dengue infections worldwide; on average, 50-60 million of those cause symptoms. We also have a collaboration with Instituto Butantan to share data and learnings from our dengue vaccine programs. In addition, we collaborate with academic institutions, nonprofit organizations, government entities and other biopharmaceutical companies, so we can follow the latest science and bring our medicines and vaccines to patients. 

In 2022, we entered into 97 significant external licenses, collaborations, and acquisitions with a broad range of partners, from early-stage science to clinical-stage programs. These collaborations are deemed “significant” because they involve an asset or technology with the potential to make an important enhancement to our R&D capabilities or potential portfolio (2022/2023 pg 15). We also collaborate with different financial institutions and payers, supporting them to expand funding options that help patients and their families cope with potentially high out-of pocket costs caused by critical illness. In addition, we are committed to engaging with global health organizations to improve the resilience of immunization programs and to advance equitable access to our vaccines, especially in LMICs. For example, through our long-term commitment to Gavi and UNICEF, we broaden access to our vaccines to help prevent HPV-related cancers and diseases in Gavi-supported countries by providing them at an accessible price. In 2022, we were proud to exceed this goal, having enabled access for more than189 million people. This is why we are taking our goal further, increasing it to 350 million people by 2025 (2022/2023 Impact Report pg. 18-19)

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 189.2 million people as of 12/31/22.

SDG Focus Area(s):

Summary

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

Activities & Initiatives

In 2022, we reached more than 500 million people with our innovations across commercial channels, clinical trials, access strategies like our partnership with Gavi and UNICEF, voluntary licensing of antiviral treatments including our investigational antiviral COVID-19 medicine, and medicine and vaccine donations. (2022/2023 Impact Report pg. 14)

Measures & Targets

Reach at least 75% of countries around the world annually with our products. Progress: 76% of countries were reached in 2022

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 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

Scientific data supports that climate change is occurring, and we are taking action to reduce the economic and public health risks associated with a changing climate. We have adopted a set of climate goals to help position our Company to succeed in an increasingly resource-constrained world. These goals were developed to align with the latest climate science and address the rising expectations of our customers, investors, external stakeholders and employees regarding the environmental impact of our operations and supply chain. Our Company has also committed to the Science Based Targets initiative (SBTi) to set a net-zero target for our greenhouse gas (GHG) emissions across our global operations (Scopes 1, 2, 3). (2022/2023 pg. 27)

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 12/31/22

SDG Focus Area(s):

Summary

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

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

Scientific data supports that climate change is occurring, and we are taking action to reduce the economic and public health risks associated with a changing climate. We have adopted a set of climate goals to help position our Company to succeed in an increasingly resource-constrained world. These goals were developed to align with the latest climate science and address the rising expectations of our customers, investors, external stakeholders and employees regarding the environmental impact of our operations and supply chain. Our Company has also committed to the Science Based Targets initiative (SBTi) to set a net-zero target for our greenhouse gas (GHG) emissions across our global operations (Scopes 1, 2, 3). (2022/2023 pg. 27)

Measures & Targets

Source 100% of our purchased elecricity from renewables by 2025. Progress: 45% of purchased elecricity sourced from renewables in 2022

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

Information about our Company, products and people is one of our most valuable assets. We are committed to the ethical use, management, and protection of information. Our commitment applies not only to our Company’s information but also to the information entrusted to us by others. Our tools, processes and procedures ensure that we appropriately collect, use and safeguard information throughout its life cycle to ensure integrity of information and to prevent unauthorized access and disclosure. We have developed and continue to improve upon a comprehensive, global, state-of-the-art information security and cyber resiliency program.

Over the past 20 years, we have developed and continually improved a comprehensive global privacy program that promotes organizational accountability for privacy, data governance, and data protection across our business and with our collaborative partners and suppliers. We were the first in the world to obtain regulatory approval in the EU for Binding Corporate Rules (BCRs), based in part on our existing Asia Pacific Economic Cooperation (APEC) Cross-Border Privacy Rules (CBPRs) certified program (2022/2023 Impact Report pg 156).

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 and 2022.

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