Non-financial report

Index to the combined separate non-financial report

In publishing our combined separate non-financial report (referred to in the following as “non-financial report”), we are meeting the legal requirements. In accordance with sections 289b (3) and 298 (2) of the German Commercial Code, the separate non-financial report of the Merck Group has been combined with the separate non-financial report of our parent company (Merck KGaA) and incorporated into our Sustainability Report. The following index provides an overview of the content of the non-financial report and contains links to the passages in the Sustainability Report that are relevant to the non-financial report. Except for pointers to the Management Report in the Annual Report, pointers to other parts of the report or links to external websites are not included in this non-financial report.

As required by Sections 289d and 315c (3) of the German Commercial Code, we have prepared this report in line with the Global Reporting Initiative Standards (“comprehensive” option).

Description of our business model

Our business model as well as our Group structure, governance and strategy are described under Company profile.

Strategic and organizational approach to sustainability

Under Governance, we present external guidelines and projects to which we have made a commitment, along with Group-wide guidelines that are the cornerstone of our responsible governance. Our sustainability strategy sets out how we practice corporate responsibility, both in terms of strategy and at the organizational level.

Material aspects and topics

To determine the aspects and topics of relevance to the non-financial report, we conducted a materiality analysis that identified several issues that could not be assigned to any of the five aspects defined as minimum contents under section 289c (2) of the German Commercial Code. Along with these five aspects, we have therefore decided to report on the following additional material topics:

As part of our approach to comprehensive risk and opportunity management, we also identify current and potential risks and opportunities resulting from environmental, social and governance aspects. This includes tracking information on the gross risks in terms of potential damage and probability, as well as the residual net risks remaining after mitigation measures have been executed. We did not identify any net risks that fulfill the materiality criteria as set forth by section 289c (3) no. 3 and 4 of the German Commercial Code. Additional risks are described in the Report on Risks and Opportunities in the combined management report.

Aspect: Environmental matters

Under “Environmental matters”, we report on environmental stewardship (including production residues in the environment and abandoned hazardous waste), greenhouse gas emissions, energy efficiency and renewable energies, plant and process safety, chemical product safety (including chemical labeling), transport and warehouse safety, and supply chain standards (including Mica supply chain).

Aspect: Employee-related matters

Under employee-related matters, we report on concepts pertaining to being an attractive employer, which includes health and safety, good leadership, employee engagement, employee development, recruiting and retaining employees (including work-life balance), diversity, and future of work.

Aspect: Social matters

“Social matters” encompasses our relationship with consumers. Under this heading, we report on concepts relating to patient safety, product-related crime, prices of medicines, responsible marketing, and data protection.

Aspect: Respect for human rights

Under “Respect for human rights”, we report on concepts related to bioethics (including genome editing), clinical studies and supply chain standards (including Mica supply chain).

Aspect: Anti-corruption and anti-bribery

Under anti-corruption and anti-bribery, we report on compliance and interactions with health systems.

Other topics

In the following section, we report on material issues that are not covered in any of the five minimum aspects stipulated in section 289c (2) of the German Commercial Code: