Merck Sustainability Report 2021

Social Standards

TAG overview

GRI Standards and Disclosure Number

 

Comment

 

Reference

GRI 401: EMPLOYMENT 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Attractive employer
Human rights

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

401-1

 

New employee hires and employee turnover

 

 

 

Indicators: employees

401-2

 

Benefits provided to full-time employees that are not provided to temporary or part-time employees

 

Part-time employees receive the same eligibility for employee benefits as full-time workers. Employees with temporary contracts, however, are not entitled to all company benefits, such as a company pension.

 

Attractive employer

401-3

 

Parental leave

 

 

 

Attractive employer
Indicators: employees

GRI 402: LABOR/MANAGEMENT RELATIONS 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Attractive employer

103-2

 

The management approach and its components

 

 

103-3

 

Evaluation of the management approach

 

 

402-1

 

Minimum notice periods regarding operational changes

 

The regulations on periods of notice vary worldwide. We apply the rules that are in force locally. There is no need for us to track periods of notice at Group level.

 

 

GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018

103-1

 

Explanation of the material topic and its Boundary

 

The disclosures under GRI 403 pertain to our employees as well as supervised temporary staff. They do not include employees of contractors.

 

Health & safety
Plant, process & transport safety

103-2

 

The management approach and its components

 

 

103-3

 

Evaluation of the management approach

 

 

403-1

 

Occupational health and safety management system

 

 

 

Health & safety

403-2

 

Hazard identification, risk assessment, and incident investigation

 

 

 

Health & safety
Plant, process & transport safety

403-3

 

Occupational health services

 

 

 

Health & safety

403-4

 

Worker participation, consultation, and communication on occupational health and safety

 

Occupational health and safety committees are required by law in Germany. All employees of Merck KGaA are therefore represented by such committees, which operate at site level. They account for around 13% of our total workforce. The majority of sites outside Germany also have health and safety committees to represent their employees. The organization of these committees is the responsibility of our individual sites. Health and safety issues are governed Group-wide by our EHS Policy. The organizational implementation of this policy is the responsibility of our individual sites and is subject to local laws and regulations. Merck KGaA, which accounts for approximately 13% of our total workforce, has company agreements in place on occupational health and safety.

 

Health & safety

403-5

 

Worker training on occupational health and safety

 

 

 

Health & safety
Plant, process & transport safety

403-6

 

Promotion of worker health

 

 

 

Health & safety

403-7

 

Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

 

 

 

Health & safety
Human rights
Plant, process & transport safety

403-8

 

Workers covered by an occupational health and safety management system

 

 

 

Health & safety

403-9

 

Work-related injuries

 

We have identified the lost time injury rate (LTIR) as a key performance indicator for our company.

 

Health & safety
Plant, process & transport safety
Indicators: employees

403-10

 

Work-related ill health

 

At Group level, we do not collect data regarding types of work-related illnesses or fatalities resulting from work-related illnesses. As deemed necessary, our sites may collect data on the incidence of occupational illness.

 

Health & safety
Plant, process & transport safety
Indicators: employees

GRI 404: TRAINING AND EDUCATION 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Diversity, equity & inclusion
Leading & developing employees

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

404-1

 

Average hours of training per year per employee

 

We do not keep track of the average hours our employees spend on vocational training and continuing education because this indicator does not have any bearing on the quality or success of our efforts.

 

 

404-2

 

Programs for upgrading employee skills and transition assistance programs

 

 

 

Sustainable supply chain management
Human rights
Product-related crime
Plant, process & transport safety
Leading & developing employees
Attractive employer
Diversity, equity & inclusion
Environmental stewardship

404-3

 

Percentage of employees receiving regular performance and career development reviews

 

 

 

Leading & developing employees
Indicators: employees

GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Diversity, equity & inclusion
Attractive employer
Objectives of the Supervisory Board with respect to its composition

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

405-1

 

Diversity of governance bodies and employees

 

 

 

Diversity, equity & inclusion
Indicators: employees
The Executive Board
The Supervisory Board
Objectives of the Supervisory Board with respect to its composition
Diversity policy

405-2

 

Ratio of basic salary and remuneration of women to men

 

As a basic principle, our compensation systems and processes do not distinguish between women and men. The salaries we offer are predicated on the respective job description and are based on our Global Job Catalog, which has fixed salary bands that are identical for men and women. Variable salary components that fall under performance-based compensation are paid on the basis of whether mutually agreed targets have been achieved. A performance management system governs this process.

 

Attractive employer
Diversity, equity & inclusion

GRI 406: NON-DISCRIMINATION 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Diversity, equity & inclusion
Attractive employer

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

406-1

 

Incidents of discrimination and corrective actions taken

 

 

 

Diversity, equity & inclusion
Indicators: business ethics

GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Sustainable supply chain management
Human rights
Attractive employer

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

407-1

 

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

 

 

 

Sustainable supply chain management
Human rights

GRI 408: CHILD LABOR 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Sustainable supply chain management
Mica supply chain
Human rights
Attractive employer

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

408-1

 

Operations and suppliers at significant risk for incidents of child labor

 

 

 

Sustainable supply chain management
Human rights
Mica supply chain

GRI 409: FORCED OR COMPULSORY LABOR 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Sustainable supply chain management
Mica supply chain
Human rights
Attractive employer

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

409-1

 

Operations and suppliers at significant risk for incidents of forced or compulsory labor

 

 

 

Sustainable supply chain management
Mica supply chain
Human rights

GRI 410: SECURITY PRACTICES 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Human rights
Sustainable supply chain management

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

410-1

 

Security personnel trained in human rights policies or procedures

 

We are currently formalizing our processes for security-relevant assessments as part of our Security Governance framework. Going forward, we will be integrating human rights aspects even more strongly into security-relevant processes, for instance training courses for security staff. To this end, we will use the newly established Security Academy platform.

 

Human rights

GRI 412: HUMAN RIGHTS ASSESSMENT 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Human rights
Attractive employer

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

412-1

 

Operations that have been subject to human rights reviews or impact assessments

 

 

 

Human rights
Indicators: business ethics

412-2

 

Employee training on human rights policies or procedures

 

 

 

Human rights

412-3

 

Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

 

 

 

Human rights

GRI 414: SUPPLIER SOCIAL ASSESSMENT 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Sustainable supply chain management
Mica supply chain
Human rights

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

414-1

 

New suppliers that were screened using social criteria

 

 

 

Sustainable supply chain management

414-2

 

Negative social impacts in the supply chain and actions taken

 

 

 

Sustainable supply chain management
Mica supply chain

GRI 415: PUBLIC POLICY 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Stakeholder dialogue

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

415-1

 

Political contributions

 

 

 

Stakeholder dialogue

GRI 416: CUSTOMER HEALTH AND SAFETY 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Clinical studies
Patient safety
Product-related crime
Chemical product safety
Sustainable products & packaging
Report on Risks and Opportunities

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

416-1

 

Assessment of the health and safety impacts of product and service categories

 

 

 

Chemical product safety

416-2

 

Incidents of non-compliance concerning the health and safety impacts of products and services

 

As applicable, we report on risks from litigation and legal proceedings in our Report on Risks and Opportunities.

 

Clinical studies
Chemical product safety
Report on Risks and Opportunities

GRI 417: MARKETING AND LABELING 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Compliance management
Responsible interactions with health systems
Patient safety
Chemical product safety

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

417-1

 

Requirements for product and service information and labeling

 

All pharmaceuticals are subject to reporting and notification requirements, which we fulfill. In line with the statutory requirements, we provide our customers with easily accessible and relevant information on the safe handling and use of our chemical products. We report on the individual requirements in the respective chapters.

 

Patient safety
Chemical product safety

417-2

 

Incidents of non-compliance concerning product and service information and labeling

 

 

 

Patient safety
Chemical product safety
Report on Risks and Opportunities

417-3

 

Incidents of non-compliance concerning marketing communications

 

As applicable, we report on risks from litigation and legal proceedings in our Report on Risks and Opportunities.

 

Report on Risks and Opportunities

GRI 418: CUSTOMER PRIVACY 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Data protection & privacy
Clinical studies

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

418-1

 

Substantiated complaints concerning breaches of customer privacy and losses of customer data

 

 

 

Data protection & privacy
Clinical studies
Indicators: business ethics

GRI 419: SOCIOECONOMIC Compliance 2016

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Compliance management
Report on Risks and Opportunities

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

419-1

 

Non-compliance with laws and regulations in the social and economic area

 

As applicable, we report on risks from litigation and legal proceedings in our Report on Risks and Opportunities.

 

Report on Risks and Opportunities

 

 

 

 

 

 

 

Additional material topics

ETHICAL CONDUCT (bioethics, digital ethics, clinical studies, animal welfare)

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Animal welfare
Bioethics
Digital ethics
Clinical studies

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

HEALTH FOR ALL

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Global health
Open innovation sharing
Prices of medicines
Health capacity & awareness

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

PRODUCT SAFETY AND QUALITY: product-related crime

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Product-related crime

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

COMMUNITY ENGAGEMENT

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Community engagement

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

ATTRACTIVE EMPLOYER

103-1

 

Explanation of the material topic and its Boundary

 

 

 

Attractive employer

103-2

 

The management approach and its components

 

 

 

103-3

 

Evaluation of the management approach

 

 

 

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