GRI Index
This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards at the Core level.
Resources
The GRI Standards represent global best practices for reporting publicly on a range of economic, environmental and social impacts.
This report provides an inclusive picture of our corporate responsibility material topics, their related impacts, and how they are managed.
Throughout this report, flags denote which GRI disclosures are relevant to the text, where applicable. Roll over a flag to see a brief description of the disclosure.
Assurance
WSP Environment & Energy, one of the world’s leading engineering and professional services consulting firms, conducted an independent third-party review of our 2018 greenhouse gas and water inventories, and provided limited assurance for the data in this report as well as what we submit to CDP. This data can be found on the Water and Climate Change & Energy Use pages of this report.
The table below summarizes where the disclosures can be found throughout this report.
| Index # | Description | Report Location/Direct Answer |
|---|
General Disclosures
| GRI 102: Organizational Profile | ||
|---|---|---|
| GRI 102-1 | Organization name | Merck & Co., Inc., Kenilworth, N.J., USA |
| GRI 102-2 | Primary brands, products, and services | Our Business 2018 Form 10-K (pages 1–3) |
| GRI 102-3 | Headquarters location | Kenilworth, N.J., USA |
| GRI 102-4 | Location of operations | We have operations in more than 140 markets around the globe (MSD worldwide) |
| GRI 102-5 | Ownership and legal form | 2018 Form 10-K (cover, page 33) |
| GRI 102-6 | Markets served | Our Business 2018 Form 10-K (pages 9, 126) |
| GRI 102-7 | Scale of the organization | Economic Impact Positive Work Environment 2018 Form 10-K (pages 1, 17, 30, 35, 40) 2019 Proxy Statement (page 29) |
| GRI 102-8 | Information on employees and other workers | As of December 31, 2018, the Company had approximately 69,000 employees worldwide, with approximately 26,700 employed in the United States, including Puerto Rico |
| GRI 102-9 | Supply chain | Manufacturing & Supply Sourcing & Supplier Relations |
| GRI 102-10 | Organizational changes during the reporting period | About This Report |
| GRI 102-11 | Precautionary principle | Product Stewardship |
| GRI 102-12 | External initiatives | Reporting Frameworks Access to Health Water Human Rights |
| GRI 102-13 | Membership associations | Public Policy |
| GRI 102: Strategy | ||
|---|---|---|
| GRI 102-14 | CEO letter | Letter from Our CEO |
| GRI 102: ETHICS & INTEGRITY | ||
|---|---|---|
| GRI 102-16 | Values, principles, standards, and norms of behavior | Code of Conduct |
| GRI 102-17 | Mechanisms for advice and concerns about ethics | Office of Ethics |
| GRI 102: GOVERNANCE | ||
|---|---|---|
| GRI 102-18 | Governance structure of the organization | Corporate Governance Corporate Responsibility Governance Leadership |
| GRI 102-20 | High-level accountability for sustainability topics | Corporate Responsibility Governance |
| GRI 102-21 | Access to the board | Corporate Responsibility Governance |
| GRI 102-22 | Composition of the board and its committees | Leadership |
| GRI 102-23 | Chair of the highest governance body | Kenneth C. Frazier is both the chairman of the board and the chief executive officer Corporate Governance 2019 Proxy Statement (pages 17–18) |
| GRI 102-24 | Board nomination and selection processes | Policies of the Board |
| GRI 102-25 | Board conflicts of interest | Policies of the Board |
| GRI 102-26 | Board and executive roles | Corporate Governance Corporate Responsibility Governance |
| GRI 102-29 | Board identification of ESG impacts, risks and opportunities | Corporate Responsibility Governance Board of Directors |
| GRI 102-30 | Board ESG review of risk management processes | Corporate Responsibility Governance Governance Committee Charter |
| GRI 102-31 | Frequency of board review | The Governance Committee shall meet no less frequently than twice each year. Meetings may be called by the Chairperson of the Committee or upon the vote of a majority of the Board. |
| GRI 102-32 | Report review | Governance Committee of the Board |
| GRI 102-33 | Board communication | 2019 Proxy Statement (pages 25–26) |
| GRI 102-35 | Remuneration policies for the board and senior executives | 2019 Proxy Statement (pages 28–29, 39–70) |
| GRI 102-36 | Process for determining remuneration | 2019 Proxy Statement (pages 39–70) |
| GRI 102-37 | Remuneration shareholder resolutions | 2019 Proxy Statement (page 42) |
| GRI 102: STAKEHOLDER ENGAGEMENT | ||
|---|---|---|
| GRI 102-40 | Stakeholder engagement | Stakeholder Engagement |
| GRI 102-41 | Union representation | Positive Work Environment |
| GRI 102-42 | Stakeholder identification | Stakeholder Engagement |
| GRI 102-43 | Approach to stakeholder engagement | Stakeholder Engagement Engaging Our Employees |
| GRI 102: REPORTING PRACTICE | ||
|---|---|---|
| GRI 102-45 | Entities included in financial statements | About This Report Data regarding employees who are part of underrepresented ethnic groups are provided for the U.S. only. |
| GRI 102-46 | Defining report content and topic boundaries | About This Report Materiality |
| GRI 102-47 | Material Aspects included | Materiality |
| GRI 102-48 | Restatements | Any restatements of information are included in the footnotes beneath the specific performance data tables. |
| GRI 102-49 | Reporting changes | None |
| GRI 102-50 | Reporting period | January 1, 2018–December 31, 2018 |
| GRI 102-51 | Date of most recent report | Released in November 2017, covering 2016 programs and data |
| GRI 102-52 | Reporting cycle | Annual |
| GRI 102-53 | Report contact | Contact Us |
| GRI 102-54 | Claims of reporting in accordance with the GRI Standards | Core level |
| GRI 102-55 | GRI content index | GRI Index |
| GRI 102-56 | External assurance | FAQ |
| GRI 201: ECONOMIC PERFORMANCE | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Economic Impact 2018 Form 10-K (pages 1–8, 17–18, 35) Climate Change & Energy Use |
| GRI 201-1 | Direct economic value generated and distributed | Economic Impact Supporting Our Communities Social Investments Financial Well-Being 2018 Form 10-K (page 35) |
| GRI 201-2 | Financial implications and other risks and opportunities due to climate change. | Climate Change & Energy Use Water 2018 Form 10-K (page 17–18) CDP Climate Change (CC5.1–CC5.1c, CC6.1–CC6.1c) |
| GRI 201-3 | Benefit plan coverage | Financial Well-Being 2018 Form 10-K (pages 111–117) |
| GRI 203: INDIRECT ECONOMIC IMPACTS | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Product Pricing Access to Health |
| GRI 203-1 | Infrastructure investments and services supported | Supporting Our Communities Social Investments |
| GRI 203-2 | Indirect economic impacts | Product Pricing U.S. Patient Assistance Programs Key Initiatives UN SDGs |
| GRI 205: ANTI-CORRUPTION | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Code of Conduct/Sourcing & Supplier Relations |
| GRI 205-2 | Communications and training on anti-corruption |
Code of Conduct Sourcing & Supplier Relations Compliance Engaging with Health Care Professionals |
| GRI 206: ANTI-COMPETITIVE BEHAVIOR | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Sales & Marketing Practices Code of Conduct |
| GRI 206-1 | Anti-competitive behavior | 2018 Form 10-K (pages 101–108) |
| GRI 301: MATERIALS | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Waste Management Materials & Packaging Green & Sustainable Science Nanotechnology |
| GRI 301-2 | Recycled inputs | Waste Management |
| GRI 302: ENERGY | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Climate Change & Energy Use |
| GRI 302-1 | Energy consumption within the organization (Scopes 1 + 2) | Climate Change & Energy Use |
| GRI 302-4 | Energy reductions | Climate Change & Energy Use |
| GRI 303: WATER | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Water |
| GRI 303-1 | Water withdrawals by source | Water CDP Water (W1.2a, W5.1a) |
| GRI 303-2 | Water sources affected by withdrawals | CDP Water (W2.6, W3.2a, W5.1) |
| GRI 305: EMISSIONS | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Air Emissions Climate Change & Energy Use |
| GRI 305-1 | Direct GHG emissions (Scope 1) | Climate Change & Energy Use CDP Climate Change (CC9.1a) |
| GRI 305-2 | Indirect GHG emissions (Scope 2) | Climate Change & Energy Use CDP Climate Change (CC10.1a) |
| GRI 305-3 | Other indirect GHG emissions (Scope 3) | Climate Change & Energy Use CDP Climate Change (CC14.1) |
| GRI 305-5 | Reduction of GHG emissions | Climate Change & Energy Use |
| GRI 305-6 | Ozone-depleting substances (ODS) | Air Emissions |
| GRI 305-7 | NOx, SOx and other emissions | Air Emissions |
| GRI 306: EFFLUENTS & WASTE | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Waste Management Pharmaceuticals in the Environment Product Stewardship |
| GRI 306-1 | Water discharge | CDP Water (W0.3, W1.2, W1.2b) |
| GRI 306-2 | Waste by type and disposal method | Waste Management |
| GRI 306-3 | Significant spills | EHS Management & Compliance |
| GRI 307: ENVIRONMENTAL COMPLIANCE | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | EHS Management & Compliance Product Stewardship |
| GRI 307-1 | Non-compliance with environmental laws and regulations | EHS Management & Compliance 2018 Form 10-K (pages 108–109) |
| GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Sourcing & Supplier Relations |
| GRI 308-1 | New suppliers screened using environmental criteria | Sourcing & Supplier Relations |
| GRI 401: EMPLOYMENT | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Employees Overview Employee Well-Being Learning & Development Office of Ethics Sourcing & Supplier Relations Human Rights |
| GRI 401-1 | New employee hires and turnover | Employees Overview |
| GRI 401-2 | Benefits provided to full-time employees | Employee Well-Being Financial Well-Being |
| GRI 401-3 | Parental leave | Emotional & Social Well-Being |
| GRI 403: OCCUPATIONAL HEALTH & SAFETY | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Employee Safety EHS Management & Compliance |
| GRI 403-2 | Rates of injury, occupational disease, lost days, absenteeism, and work-related fatalities | Employee Safety |
| GRI 403-3 | Workers with high risk of diseases related to their occupation | Employee Safety |
| GRI 404: TRAINING & EDUCATION | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Learning & Development |
| GRI 404-1 | Average hours of employee training | Learning & Development |
| GRI 404-2 | Programs for upgrading employee skills and transition assistance programs | Learning & Development |
| GRI 404-3 | Percentage of employees receiving regular performance reviews | Learning & Development |
| GRI 405: DIVERSITY & EQUAL OPPORTUNITY | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Global Diversity & Inclusion Employee Diversity |
| GRI 405-1 | Diversity of governance bodies and employees | Global Diversity & Inclusion |
| GRI 407: FREEDOM OF ASSOCIATION & COLLECTIVE BARGAINING | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Human Rights |
| GRI 407-1 | Operations and suppliers in which the right to freedom of association may be at risk | Human Rights Sourcing & Supplier Relations |
| GRI 409: FORCED OR COMPULSORY LABOR | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Human Rights |
| GRI 409-1 | Operations and suppliers at significant risk for incidents of forced or compulsory labor | Human Rights Sourcing & Supplier Relations |
| GRI 412: HUMAN RIGHTS ASSESSMENT | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Human Rights Sourcing & Supplier Relations |
| GRI 412-2 | Employee training on human rights policies and procedures | Code of Conduct |
| GRI 414: SUPPLIER SOCIAL ASSESSMENT | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Sourcing & Supplier Relations |
| GRI 414-1 | New suppliers screened using social criteria | Sourcing & Supplier Relations |
| GRI 415: PUBLIC POLICY | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Public Policy |
| GRI 415-1 | Political contributions | Public Policy |
| GRI 416: CUSTOMER HEALTH & SAFETY | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Manufacturing & Supply Product & Patient Safety |
| GRI 416-1 | Assessment of the health and safety impacts of product and service categories | Quality & Safety Standards Manufacturing & Supply |
| GRI 416-2 | Incidents of non-compliance concerning the health and safety impacts of products and services. | Quality & Safety Standards |
| GRI 417: MARKETING & LABELING | ||
|---|---|---|
| GRI 417-1 | Requirements for product and service information and labeling | Product & Patient Safety |
| GRI 417-2 | Incidents of non-compliance concerning product and service information and labeling | Sales & Marketing Practices |
| GRI 417-3 | Incidents of non-compliance concerning marketing communications | Sales & Marketing Practices |
| GRI 418: CUSTOMER PRIVACY | ||
|---|---|---|
| Management Approach | Explanation of the material topic, its boundary, how the topic is managed, and mechanisms for evaluating the effectiveness of the company's strategy. | Information Security & Privacy |
| GRI 418-1 | Substantiated complaints regarding breaches of customer privacy and losses of customer data | Information Security & Privacy |
