OUR CORPORATE RESPONSIBILITY - GENERAL OVERVIEW AS OF FEBRUARY 2020 - MERCK KGAA
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ouR coRPorate Responsibility General Overview as of February 2020
successful Business Conscience with a 2 Our Corporate Responsibility
Science heart
“Merck has been operating for
is at the more than 350 years. Our long
of everything we do. history has taught us that
sustainable business success is
We want to develop products that always the result of responsible
create
conduct.”
Stefan Oschmann,
sustainable value Chairman of the
Executive Board and CEO
for our customers, for our company and for
society.
3 Our Corporate Responsibility
View from the outside 1/2
External stakeholders valuate our engagement
Since 2008, Merck Merck was confirmed as In 2018, the Merck Since 2015 Merck In 2018, Sustainalytics
shares have been a constituent of the share was once again has been a member of awarded us 79 out of
included in the Ethibel Sustainability included in STOXX the Euronext Vigeo – 100 points, putting us
FTSE4Good Index. Index (ESI) Excellence Global ESG Leaders Eurozone 120. among the leading
Europe in 2018. Index, a sustainability The index includes pharmaceutical
index that assesses companies that show companies − with
companies based on key high performance particularly high marks
environmental, social with respect to 38 in corporate governance,
and governance criteria. sustainability drivers. community outreach,
and environmental
performance.
4 Our Corporate Responsibility
View from the outside 2/2
Proof points for our leading position
In 2018, Oekom Merck received Gold In the 2018 Access to Participation in CDP Merck ranks on fourth
research AG gave Merck status in 2019, Medicine Index Merck (formerly Carbon place among its peer
a “B-” rating which among the top 1% ranked fourth place Disclosure Project) companies and
means Merck has once of companies. again. since 2008. achieved a total of 54
more achieved prime out of 100 points
EcoVadis annually The ranking appreciates CDP Climate: In 2018,
status. (“robust”) with respect
examines 45,000 Merck‘s efforts support- we scored “C” (2017: B).
to environmental, social
suppliers from 150 ing low and middle CDP Water: In 2018 we and governance (ESG)
countries. The rating income countries by received a “B-” (2017: B). topics.
focuses on 21 criteria; providing expertise and
topic areas: environment, lab supplies. In 2018 Vigeo Eiris, a
social affairs, ethics, and sustainability rating and
sustainable procurement. research agency,
analyzed ~ 4,500
companies.
5 Our Corporate Responsibility
Fulfilling our
corporate
responsibility
strategy …
We seek to create added We conduct our business in
value both for Merck as a responsible manner:
well as for the By doing so, we secure
CR
community… our social license to operate
Strategy
… focusing our strength on and enhance the
those areas where we can competitiveness of our
achieve the highest impact. company.
6 Our Corporate Responsibility
Strategic sphere Global Health
Improving care globally
We provide people with access to
adequate high-quality healthcare, for
example Transparency on patents
to insure public health
needs: Pat-INFORMED
#4
We improved access to better initiative recognized
as a best practice in the
therapies in diabetes, cancer,
hypertension, and fertility in 2018
Access to Medicine Index in the
underserved regions through the Merck Access to
Capacity Advancement Program Medicine
#4
Index.*
We strengthened the Merck Global
Health Institute to accelerate R&D, #6
incorporate access provisions and build #9
capacity #17
Colorectal Cancer
Awareness Month
We conduct awareness campaigns campaign #gutstrength
e.g. for diabetes, thyroid disorders reached
2018
2010 2012 2014 2016
and cancer
162,000
people
* The ATM Index assesses the degree to which companies have improved access to
medicines in developing nations.
7 Our Corporate Responsibility
Strategic sphere Global Health
Our engagement in Africa
Preventing and treating infectious diseases
• We aim to eliminate the worm disease schistosomiasis
− Since 2007, we have donated over 900 million praziquantel tablets to Number of praziquantel tablets
WHO for distribution across 46 nations in Africa
donated to WHO (millions)
− We support the NALA Foundation with a Schistosomiasis Health
200 200
Education Project targeting 850,000 people in Ethiopia
− We are developing a pediatric formulation of praziquantel for children
under the age of six (Phase III study will be implemented in 2019)
150
We help delivering integrated and
sustainable health solutions against 100
malaria (treatments, diagnostics, 75
prevention methods) 50
25 27
New compound is being developed as a
single-dose combination to treat and 2011 2012 2013 2014 2015 2016 2017 2018
potentially prevent malaria in children
(Phase I study underway since 2017)
8 Our Corporate Responsibility
Strategic sphere Sustainable Solutions
More sustainable products throughout their life-cycle
Continuously improving the sustainability performance of our products and helping our customers to reach
their sustainability targets:
Our in-house-developed web- We develop display technologies
With the Design for Sustain-
based tool DOZN™ enables us that reduce energy
ability (DfS) program, we
to assess green alternatives of consumption.
reduce environmental
impacts of devices and various chemicals, creating For example:
instruments, also through transparency for our customers.
We are developing high
customers’ own use, when For example: performance OLED
developing a new product. materials for vacuum
• Cyrene™: Bio-based
For example: solvent derived from evaporation methods and
waste cellulose is used printing processes. OLEDs
• By the end of 2018, 27% of
as an alternative to the increase the energy efficiency
these DfS product
critical substance of displays. At
BAU 2019
development projects met
formic acid. Our liquid crystal
2018
three or more product
we showed an iconic
sustainability criteria. • To date, we have used In window technology under building
Cyrene was the new brand eyriseTM
this matrix to assess design by renowned
• EZ-Fit™ Manifold laboratory shortlisted for the
Brazilian architect Oscar
and improve more than “innovation of the can lower the energy
filter now requires 47% less year” at the Ethical
Niemeyer.
40 products. consumed by building
raw material than its Corporation’s
Responsible Business climate control by up
predecessor. Awards.
to 40%.
9 Our Corporate Responsibility
Strategic sphere Broad Minds
Foster creativity and curiosity
By making education on all levels and culture accessible, we nurture characteristics that are essential to
us as a high-tech company, namely creativity, enthusiasm for new discoveries and curiosity:
We inspire a love of science Deutsche Philharmonie
~31,000
In 2018 in the next generation of Merck is our musical
approximately
3,500
researchers with a special focus ambassador
people
on science education. attending
students concerts in
conducted research Junior laboratories with the 2018
in the TU Darmstadt
laboratories Technical University (TU) of Literature can stimulate
Darmstadt imagination and give
School booster program in courage:
Germany helped ~70 schools We further writers who
conducting experiment-based
In 2018 drive cultural exchange
5
more than science
66,000
in our globalized world
Curiosity Cube tour within literary prizes
students in Germany,
engaged by SPARK SPARK program travelled India, Italy, Japan
Global Volunteer 30,000 kilometers in North Merck has more than
1 million €
and Russia
10
Program
America professors teaching
on an voluntary basis. In annually will be provided over
addition we are sponsoring the next 35 years for the
several university new research award
professorships. Future Insight Prize
10 Our Corporate ResponsibilityHow do we secure our social license to operate?
Looking, listening and doing better
1 2
Governance: Responsible products and
Our
conduct as central pillar of our technologies help to
company culture and integrated in solve global problems: When it comes
our corporate governance. to safety, environmental sustainability and
ethical practices, we have extremely high
expectations and standards.
6 3
We are dedicated to Secure supply chains are key to
environmental our success: We take a risk-based approach
stewardship, working to and are member of the Together for
conserve resources such as energy, Sustainability initiative - pushing for better
water and raw materials while environmental, compliance and social
reducing emissions and waste. standards at suppliers.
5 4
Across all our sites people are crucial to our
worldwide, we are deeply success: We seek to retain and
supporting
committed to develop them.
our communities. We are integrating human rights due
diligence into our processes.
11 Our Corporate ResponsibilityOur social license to operate: Governance
Integrating responsible behavior into our governance
1 2 3
Company values, along with the Group-wide guidelines such as the Derived from the charters, principles
external regulations and our Corporate Environment, Health and and policies, our internal standards
commitment to initiatives Safety (EHS) Policy, the Human give specific guidance to those
Rights Charter or the Genome Editing responsible for operational processes
Principle
Our employees are educated and In response to the European General Data
trained on all guidelines that apply to them.
Protection Regulation (EU GDPR), we redesigned our regular
11,404 Data Privacy eLearning course,
employees and contractors took part in 2018 in the anti-corruption rolling it out in 17 languages.
training available in 15 languages.
12 Our Corporate ResponsibilityCorporate Governance at Merck
Reaching a new level of transparency in board compensation and CG
Improvements underway:
• Intense dialogue with national and • Last voting of AGM on the compensation
international investors to discuss state of system (not mandatory for Merck as a
the art compensation systems KGaA) in 2018
• Board compensation system is built on • Since 2018 Merck provides a more
best practice and leading voluntary transparent and user friendly
guidelines: Reported according to the remuneration report
Follow link
German Corporate Governance Code
• Awarded in 2018 with the
“Euroshareholder Award for the Most
shareholder-friendly Directors' Pay
Total Cap for LTI Grant Amount System DAX30”
in total • Introduction of maximum age (75 years)
and maximum length of membership (15
years) in the Supervisory Board in 2017
• Open for a dialogue between Supervisory
Board and investors
Follow link
13 Our Corporate ResponsibilityCorporate Governance at Merck
The best of both worlds –family-owned and publicly listed
Share capital of limited liability Equity interest of General Partner
shareholders E. Merck KG
€ 168,014,927.60 (129,242,252 shares) € 397,196,314.35
• Around 30% of the total capital of • General partner, holds around 70% of the
Merck KGaA is publicly traded total capital of Merck KGaA
• Only the share capital of limited • Limited role of the Supervisory Board of
liability shareholders is entitled to Merck KGaA (however, no restrictions of its
vote at General Meetings audit duties)
30% 70%
• The supervisory board is elected to • Instead, some of the responsibilities that
promote the interest of the share lie with the Supervisory Board of a German
Voting at Non-voting
holders stock corporation are fulfilled at Merck
AGM at AGM
KGaA by the Board of Partners of E. Merck
KG
MeRck
KGaA
Total capital
€ 565,211,241.95
14 Our Corporate ResponsibilityCorporate Governance at Merck
Profile of skills, expertise and diversity of Supervisory Board
In their entirety, the Nominees for the election of the The Profile of Skills,
Supervisory Board in 2019 fulfill the profile of Expertise and Diversity
skills, expertise and diversity (see Merck’s for Merck‘s Supervisory
Annual Report). Newly elected members complete a Board aims at:
comprehensive on-boarding process.
• Min. 4 members with experience in main
Profile met important fields of Merck (HC, LS, PM)
Important fields of Merck • Min. 3 members with experience in the
main sales geographies of Merck
Profile of skills,
expertise and
Main sales geographies (Europe, Americas, Asia-Pacific)
diversity
• Min. 3 members with management
Management experience
experience in medium- to large-sized
Experience in business administration companies
• Min. 4 members who have in-depth
External supervisory & control boards knowledge of business administration
Percentage of women • Min. 4 members which are also members
in other external supervisory and
Digital control boards
ESG (Environment, Social, Governance) • A percentage of women of min. 37,5%
15 Our Corporate ResponsibilityCorporate Governance at Merck
Boards and Committees
Shareholders of Merck KGaA E. Merck KG: Partners‘ Meeting & Family Board
▪ Shareholders hold ~30% of the total capital of Merck KGaA ▪ E. Merck KG holds ~70% of the total capital of Merck KGaA (99.9% Merck Family)
▪ This capital is divided into bearer shares and one name share without nominal value listed ▪ These 70% of the total capital are not entitled to vote at Merck’s AGM
at the German Stock Exchange’s Prime Standard, member of the DAX 30 (German Blue
Chips). The bearer shares are entitled to vote at Merck’s Annual General Meeting with one ▪ Family Board represents the entrepreneurial interests of the Merck family (elected by
vote per share. partners’ meeting)
▪ The Merck Share is a name share.
Supervisory Board Board of Partners
▪ Its Chairman leads the AGM, representing the interests of Merck’s shareholders ▪ Elected by the Family Board and taking over some duties of a usual Supervisory Board:
▪ Approving the financial statements of Merck KGaA ▪ Appointment, dismissal and supervision of Executive Board members of Merck KGaA
▪ Working together with Executive Board, receiving reporting on progress regarding business ▪ Granting approval of extraordinary business transactions and approves the annual financial
and financial development at Merck, having 1 committee: Nomination Committee statements of E. Merck KG.
▪ Containing 16 members: 8 employee representatives, 8 representatives incl. 2 family ▪ It contains 5 members of the Family Board and 4 external members of the business
representatives and 6 elected and independent shareholder representatives community, having 3 committees: Personnel, Finance, R&D Committee
Nomination Committee Personnel Committee Finance Committee R&D Committee
• Define criteria for the selection process • Decisions regarding members of the • Analyzing and discussing the annual • Reviewing and discussing the research
and target profile of potential supervisory Executive Board financial statements activities of Healthcare, Life Science and
board members Performance Materials
• Executive Board employment contracts • Recommends an auditor for the annual
• Make proposals for new candidates financial statements
• Compensation system
Executive Board
▪ The Executive Board is the management body and the face of E. Merck KG
▪ Conducting the business of Merck KGaA, representing the company externally re. strategy, business development, financials
▪ Implementing the resolutions passed by E. Merck KG and Supervisory Board
.
16 Our Corporate ResponsibilityLast AGM approval on
Corporate Governance at Merck remuneration system:
Remuneration System 2018
Improved remuneration
system since 2018
▪ Share plan based on virtual shares
Increasing criteria (bonus) ▪ Share ownership
Merck LTIP
▪ KPIs: 50% MRK share price vs. DAX,
25% EBTDA pre margin,
+ Successful M&A activities guideline
25% organic sales growth + Strategic development or reorganization ▪ Claw back rule
Individual maximum cap
▪ 3 year cycle with 250% max individual cap + Achievements in important projects
▪ Disclosure of total and
▪ Ex-post disclosure of performance corridor + Achievements in the area of individual
single compensation
▪ KPI: 3-year average of Profit after tax responsibility
(E. Merck) -> this measure also serves caps
+ Contributions to stakeholder objectives
Profit sharing
for dividend calculation like CSR, diversity ▪ Disclosure of LTIP
▪ Discretionary factor 0.7-1.3 corridor ex-post
Lowering criteria (malus)
▪ Profit sharing criteria catalogue
− Violations of internal rules, e.g. code of ▪ Using GCGC tables
▪ Individual maximum amount conduct or external rules on responsibility,
unethical behavior or contradictory to our ▪ Including CSR and
▪ Individual performance factor disclosed, in
case of ≠1 disclosure of applied criteria company values diversity in profit
− Failure in executing important projects sharing catalogue
▪ Performance independent compensation
− Missing objectives in the area of Approved by AGM in
Fix
▪ Additional benefits like contributions to ▪
insurance, security expenses, car individual responsibility 2018
At Merck, unlike publicly listed German stock corporations, it is not the Supervisory Board, but the
Personnel committee of the Board of Partners of E. Merck KG that decides on the amount and
composition of compensation received by our Executive Board members.
17 Our Corporate ResponsibilityCorporate Governance at Merck
Anticipatory resolutions on capital measures
1 Authorized Capital 2 Contingent Capital
• valid until April 2022 • valid until April 2023
• 56.521.124,19 € • 16.801.491,20 €
• 33,6% of base capital • 10% of base capital
• Exclusion of subscription rights of 20% • Exclusion of subscription rights of 20%
(cumulative with contingent capital (cumulative with authorized capital
described below) described above)
• Authorization to issue warrant and/or
convertible bonds, participation rights
Merck can issue stock or participation bonds, or a
without shareholder
approval of 33.6% of
combination of these instruments
shares outstanding
(with a maximum of
20% exclusion of
subscription rights)
18 Our Corporate ResponsibilityOur social license to operate: Products & technologies
Products with sustainable impact
10% 2 million
expanded polystyrene
Increased
of medicines energy efficiency with OLED
in developing and molded foam components displays
emerging countries replaced
are counterfeit in 2018
Fighting counterfeit medicines Committed to circular economy Thin & light with supreme contrast
• We secure our products against • >300,000 products in our Life Science • OLED materials increase energy efficiency
counterfeiting and are deeply committed portfolio need sustainable packaging of displays while providing brilliant colors
and razor-sharp images
to fighting product-related crime • We used approximately 669 metric tons of
molded pulp packaging material in 2018 • OLED production: Some material always
• We apply a unique serial number to our remains in the used containers and
pharmaceutical packaging • End of 2018, we kicked-off our sustainable machinery. Our customers can collect this
packaging plan with four goals: residual and send it back to us. We then
• With the GPHF Minilab®, a portable, − Reduce amount of packaging prepare it so that it reaches its original
compact laboratory, counterfeit medicines − Achieve zero deforestation quality again and can be reused.
can be detected quickly, easily and − Improve plastic sustainability
− Maximize recycling
inexpensively
19 Our Corporate ResponsibilityOur social license to operate: People (1/3)
Engagement is key
98%
61%
More than
30
of employees
participated in the
Performance and of employees feel
Potential engaged at work different part time
Management working models
Realizing people‘s full potential Employee engagement Better work-life balance
Regular feedback on employee Annual Group-wide Employee Engagement New Group-wide guideline facilitates the
performance Survey: use of flexible working time and location
options in the twelve major countries
Leaders and subordinates work together platform for employees and management
to define individual objectives to share opinions and ideas Part-time employees (5% of total
workforce) receive the same job benefits
70% of employees create development benchmark against our competitors
as fulltime workers
plan reflecting each employee’s tasks and
2018 we included questions regarding
strategic priorities Parental leave conditions beyond statutory
employee health. The input is used to
requirements for 45% of workforce
calculate our company’s Healthiness Index
from 2019 on.
20 Our Corporate ResponsibilityOur social license to operate: People (2/3)
Well on track for our goals
Our goal:
Lower the LTIR
to1.5 by
2020
1.8
1.4 1.3
1.5
1.3 12.1%
11.0% 10.4% 9.1% 9.1%
1 2
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Health & Safety for our people Turnover rate
The lost time injury rate (LTIR)* is the indicator to Focus on a stable workforce that brings our
assess the success of our strategy to life and moves the business forward.
safety efforts.
* LTIR = workplace accidents resulting in missed days of work per one million 1 Employee turnover for 2014 was calculated: Total number of leavers of the past 12 months
man-hours. multiplied by 100 divided by the employee headcount as of December 31.
2 Employee headcount from 2015 on is calculated: Total number of leavers from the past 12
months divided by the average employee headcount multiplied by 100.
21 Our Corporate ResponsibilityOur social license to operate: People (3/3)
Well on track for our goals
Our goal:
30% women
in leadership roles 81% 84% 87%
by 2021 74% 70%
29% 30% 32%
26% 27%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Diversity Rich leadership pipeline
Focus on women in leadership and We identify and advance suitable
increasing internationality. In 2018, we employees with leadership potential.
overachieved our target for 2021. In 2018 87% of our vacant leadership
positions were filled internally.
22 Our Corporate ResponsibilityOur social license to operate: Supporting our communities
Charitable activities together with our employees
2018 We mainly support social projects that
align with our strategic focus areas,
namely Global Health, Sustainable
Spending a Solutions and Broad Minds and happen
total of around in the vicinity of our sites and in the
€ 36 countries where we operate.
million on
Focus on long-term initiatives: Our
community
involvement activities are intended to have a
positive, long-lasting effect on the
community.
Our employees participate in corporate
volunteering programs. In 2018, we
During our anniversary year we
introduced a new Group-wide Corporate
conducted more than 350
Volunteering Guideline, which grants
charitable activities in 60
our people up to two days of paid leave per
countries worldwide: Our
year to volunteer in initiatives that are
employees were engaged in
supported by our company.
around 60% of the projects.
23 Our Corporate ResponsibilityOur social license to operate: Environmental stewardship
Reducing our environmental footprint
We meet a strict set of environmental We strive to conserve water
regulations at all our sites Goal
We minimize the amount of
Since 2009, our company has held a Group pharmaceutical active ingredient for 2020:
ISO 14001 certificate: All production sites with residue in our wastewater by Cut water use by
more than 50 employees must implement To mitigate optimizing production and 10% at our sites
the requirements of the certificate. 81 sites the impact resulting purification processes. All our in water-stressed
worldwide are covered. pharmaceutical manufacturing areas
from our operations
In 2018, we passed 10 ISO 14001 audits, facilities have wastewater treatment
including facilities added to the Group certificate. plants.
We foster increasing We reduce waste and recycle
climate protection Goal as much as possible
for 2020: We ensure that raw materials
Despite more than doubling
Reduce our are recycled and that unrecyclable
our sales between 2006 and
greenhouse waste is discarded in an Goal
2018, we managed to gas emissions
environmentally sustainable for 2025:
reduce our greenhouse gas
by 20%* manner in line with the Reduce the
emissions by 11% relative
strictest waste disposal ecological
to the 2006 baseline. impact
standards.
of our waste
5%**
* Compared to 2006
** Compared to 2016
by
24 Our Corporate ResponsibilityGoals
summary
25 Our Corporate ResponsibilityESG goals
We are working on ambitious goals
Environment Social Governance
Climate Product safety Growth & Profit sharing
We endeavor to reduce Product safety is one of our Our growth results from innovations and
direct and indirect top priorities: From safe acquisitions strengthening our position in
emissions to mitigate our handling of hazardous important markets, supported by strong
impact on the climate. substances to ensuring cash-flow, long-term margins of >30%
patient safety. and a conservative but reliable dividend.
Waste Employees Risk management
We consider it fundamental We aim to be an attractive We are focusing on a diversified business
to both prevent and recycle employer, encouraging model: Our 3 sectors have pioneering
as much of our waste as creativity and development knowledge to develop products to improve
possible. under ideal working life for patients, further the success of our
conditions. customers and meet global challenges.
Water Access to Medicine Steering
For us, sustainable water We support a variety of Our core values along with the external
management means not initiatives that improve regulations lead to business-guiding
negatively impacting the access to health particularly charters and principles for our responsible
aquatic ecosystems for people in low- and governance, documented in our Corporate
middle-income countries. Responsibility strategy and report.
26ESG goals
Emissions, water, waste reduced despite growing business
Emission target: Water target: Waste target:
• Growth-independent reduction of • At 24 sites with relevant water use • We reduce waste and recycle
Merck‘s greenhouse gas emissions in areas of high water stress we as much as possible - we aim to
of 20% until 2020 vs. 2006 aim to cut water consumption by reduce the environmental impact
10% until 2020 vs. 2014 of our waste by 5% until 2025
• Despite sales growth of 137%
2006 vs. 2018 we achieved a • 2018, we lowered our water compared to 2016
11% reduction of CO2 equiv. consumption by 11% resulting • The Merck Waste Score allows us
from sustainable water to compare the amount of waste
• We still confirm our goal for 2020
expecting positive impact from management and re-usage our sites are producing
latest initiatives, e.g. process • All pharmaceutical manufacturing • We ensure that raw materials
optimizations and change to facilities have wastewater are recycled and that unrecyclable
renewable energy treatment plants waste is discarded
CO2-Equivalents (absolute) Water consumption Merck Waste Score
in water stress areas
100% 89% 80% in 2020
in 2014
100% 98% 95%
2006 2018 2020
14.8
100% 90%
+137%
6.3 2018 2025
2016
Sales bn € 2018: -11%
27Selected
figures
28 Our Corporate ResponsibilityEmployees
Number of employees by hierarchical level
Total
employees % of women % of men
49,613 50,414 52,941 51,749
59 57 57 56
41 43 43 44
2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018
Number
of employees
2015* 2016* 2017* 2018* 2015 2016 2017 2018 2015 2016 2017 2018
Senior management 146 181 197 193 21 25 30 36 125 156 167 157
Middle management 2,211 2,685 2,927 3,095 611 805 917 1,025 1,600 1,880 2,010 2,070
Low management 6,622 8,139 8,904 9,019 2,636 3,361 3,714 3,795 3,986 4,778 5,190 5,224
Other employees 40,634 39,409 40,913 39,442 17,348 17,375 18,197 17,888 23,286 22,034 22,716 21,554
* From 2015 on, these figures include Sigma-Aldrich, however as of Dec. 31, 2017 the job grading system had not yet been implemented for employees of Sigma-Aldrich legal entities in Germany, or for
employees of Allergopharma. These employees are included under “thereof other employees (Role 3 and below)”.
29 Our Corporate ResponsibilityEmployees
Number of employees by region
Total employees
North America Europe
2015* 2016 2017 2018 2015* 2016 2017 2018
52,941
52.941
Tolal 9,794 10,037 10,520 10,978 51,749 Total 23,429 24,438 25,980 25,792
50,414
Women 4,183 4,308 4,518 4,742 49,613 Women 10,316 10,884 11,627 11,464
Women (%) 43 43 43 43 Women (%) 44 45 45 44
2015 2016 2017 2018
Latin America Middle East and Africa Asia-Pacific
2015* 2016 2017 2018 2015* 2016 2017 2018 2015 2016 2017 2018
Total 4,352 4,140 4,050 3,340 Total 942 1,045 1,097 1,097 Total 11,096 10,754 11,294 11,096
Women 1,986 1,910 1,896 1,648 Women 425 483 519 519 Women 3,706 3,981 4,298 4,348
Women (%) 46 46 47 47 Women (%) 45 46 47 47 Women (%) 33 37 38 41
* Includes Sigma-Aldrich as of 2015; As of Dec. 31
External contractors are currently not logged in our employee data system, nor do we currently have any plans to integrate them.
30 Our Corporate ResponsibilitySociety
Spending
Spending on community Focus of our local
involvement community involvement in %
in € million 100 Based on number of projects
2014 2015 2016*,** 2017 2018*
Global Health 33 33 35 38 34
51
Broad Minds 38 33 36 43 42
43
36
Sustainable
34 solutions:
Environment
10 7 5 4 2
Disaster relief 4 6 2 2 2
Other 15 21 22 13 20
*, **
2014 2015 2016 2017 2018 *
* Includes Sigma-Aldrich as of 2016 and excludes the Merck Foundation as of 2018
** From 2016 on, we are separating spending on patient support programs such as our Erbitux ®
China Patients Assistance Program from our community involvement figures.
31 Our Corporate ResponsibilityEnvironment
Total Greenhouse Gas Emissions
Total greenhouse gas emissions
in metric kilotons Scope 1*
Goal emissions that we produce ourselves,
for instance by burning fossil fuels to
786 722 689 704 698
for 2020:
generate power.
0 Reduce our
13
13
greenhouse
Scope 2*
13
gas emissions
408 331
14
344
by 20% emissions from the consumption of
305
331 purchased energy, such as electricity
or district heating.
Biogenic
CO2 emissions Focus
378 391 384 373 354 Indirect CO2 40 of our sites account
eq emissions for roughly 80% of our
Direct CO2 greenhouse gas emissions
eq emissions
**
2006 2015 2016 2017 2018
eq = equivalent
* In line with the Greenhouse Gas Protocol, for all previous years (up to the 2006 baseline) the greenhouse gas emissions
have been calculated based on the current corporate structure of the reporting year and retroactively adjusted for
acquisitions (e.g. Sigma-Aldrich in 2015) or divestments of (parts of) companies, or for changes in emission factors
(portfolio-adjusted).
** Baseline for our emission targets is 2006.
32 Our Corporate ResponsibilityEnvironment
Moderate energy consumption and less waste
Goal
Energy consumption for 2020:
in terajoules
Full integration
of the purchase
7,708 7,621 7,898 8,035 of electricity
from renewable
sources
4,835 4,788 4,748 4,759
2,873 2,833 3,150 3,276
2015 2016 2017 2018
Indirect energy Direct energy
consumption consumption
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