Report profile

This is our sixth Corporate Responsibility (CR) Report. We have a long tradition of reporting on topics pertaining to our corporate responsibility. Since as early as 1993, we have been reporting on how we fulfill this obligation; initially, we published environmental reports, but then in 2003, we started publishing a full Corporate Responsibility report every two years. Our goal is to inform people about our activities, successes and challenges. At the same time, our CR Report documents the progress we’ve made in implementing the principles of the United Nations Global Compact (“Communication on Progress”).

Reporting framework

This CR Report covers the 2011 and 2012 fiscal years and pertains to Merck KGaA, Darmstadt, Germany with its 203 sites in 66 countries. Any deviations from this reporting framework are indicated in each specific case.

Systems for collecting and consolidating data

Since 2005, we have been using the Group-wide electronic Location Information Online System (LION) to collect environmental data as well as occupational health and safety data. The data is input locally at the individual sites and approved after being reviewed. In order to ensure that the data is reliable, the function Environment Health Safety Security Quality (EQ) furthermore checks the feasibility of the data.

We compile environmentally relevant performance indicators from all Merck KGaA, Darmstadt, Germany production sites, as well as relevant warehouse and research sites. In assessing the relevance of the warehouse and research sites, we take into account the sites' environmental impact as well as the number of employees there. LION’s scope of consolidation therefore covers all Merck KGaA, Darmstadt, Germany sites that relevantly impact the environment.

For the indicators on occupational health and safety, we have furthermore incorporated additional warehouse sites and branch offices into our data collection process, covering more than 95% of all employees.

To improve data quality, we help the sites optimize their data collection processes as well as the associated quality control. The processes and the reported data are audited by EQ and examined in the course of internal EHS audits.

The data on employees and social engagement pertain to Merck KGaA, Darmstadt, Germany. Employee master data is continually updated in an SAP-based database. Other employee data, for example data pertaining to core ILO standards, and data on social engagement are queried on an annual basis.

Some employee data is only reported for the sites in Darmstadt, Gernsheim and Grafing (all in Germany), which employed 24% of our employees in 2012. We indicate accordingly when this is the case.

Determining report content

The content of our CR report is oriented to the internationally recognized G3.1 Guidelines of the Global Reporting Initiative (GRI). This report meets the criteria for an A+ application level (confirmed by GRI).

We have furthermore taken into consideration the requirements of the capital market for assessing companies' contributions to sustainability. In summer 2012, we conducted a materiality analysis to determine the CR topics of relevance to Merck KGaA, Darmstadt, Germany. Both online and via telephone, we surveyed 85 stakeholders, including customers, non-governmental organizations, Merck KGaA, Darmstadt, Germany employees, and scientists. Internal workshops were then held to assess the results in terms of their materiality for the company. The results of the materiality analysis are presented in the materiality matrix. The higher and farther to the right a topic is in the matrix, the more important it is for our stakeholders as well as for our business activities.

We have derived the content of this CR Report from the results of the materiality analysis. The report addresses all topics identified as material.

Materiality analysis

Materiality analysis (graphic)

External audit

KPMG AG Wirtschaftsprüfungsgesellschaft has audited the annual financial statements and management report of the Merck KGaA, Darmstadt, Germany and issued an unqualified opinion. Furthermore, after undergoing a limited assurance audit, Merck KGaA, Darmstadt, Germany has obtained an independent audit certificate for the non-financial key performance indicators.

Point of contact:

We are happy to receive your feedback and answer your questions.

Merck KGaA
Group Communications
Maria Schaad

Frankfurter Str. 250
D–64293 Darmstadt
Germany

Telephone: +49 6151 72–0
Fax: +49 6151 72–200

Our next CR report is scheduled for publication in April 2015.

DISCLAIMER

Publication of Merck KGaA, Darmstadt, Germany.

In the United States and Canada the subsidiaries of Merck KGaA, Darmstadt, Germany operate under the umbrella brand EMD.

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