Merck KGaA — full event log

Largest Scope 3 category at 1,021,008 tCO2e in 2024 (down from 1,163,923 in 2020). Electronics specialty gases (etching, cleaning, deposition, dopant gases) have high GWP and are emitted during customer use. Merck optimizes formulations for low-GWP alternatives. Battery-based injection devices in Healthcare and Life Science portfolio products (Biology, Biomonitoring, Chemistry, LabWater) also covered.

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In 2024, Merck designed its first transition plan for climate protection, outlining how it intends to contribute to mitigating climate change and achieving its own climate goals. Aligns with Paris Agreement 1.5°C goal.

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Target to cover 80% of purchased electricity with renewable energies by 2030. 2024 performance: 52.2%.

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Target to achieve a circularity rate of 70% throughout the company as part of waste target 2030. 2024 performance: 69.2%. Baseline 64.1% in 2022.

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Target to achieve 50% reduction in water efficiency ratio (water withdrawal per net sales) to 396 m³ per € million by 2030 vs 2020 baseline of 792 m³/€m. 2024: 588 m³/€m.

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First Sustainability Statement prepared under ESRS framework, representing a break in consistency from previous GRI-based reporting. Materiality analysis conducted using double materiality approach per ESRS.

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Sustainability strategy focused on three goals - Products (SDGs 3, 8, 9, 17), People & Processes (SDGs 5, 8, 12, 17), and Planet (SDGs 9, 12, 13, 17).

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Target to achieve gender parity in middle and top management (role 4+) by 2030. 2024: 39.0%. Plus targets for 30% underrepresented ethnic groups in US leadership and 30% nationals from Asia/LatAm/MEA in global leadership.

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Target to reach more than 170 million patients per year in LMICs by 2030 (>80M with healthcare portfolio, >90M with global health portfolio including praziquantel for schistosomiasis).

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By end of 2024, all Merck animal facilities accredited by Association for Assessment and Accreditation of Laboratory Animal Care (AAALAC).

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Acquisition of HUB Organoids Holding B.V., Netherlands completed on December 23, 2024. Employees excluded from 2024 workforce figures.

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Acquisition date October 31, 2024. Employee data related to performance management not yet fully integrated into database.

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Developed roadmap for biodiversity divided into six focus areas; plans to implement a biodiversity policy from 2025. Preliminary analysis based on TNFD framework. Identified 10 of 108 production sites within 1km of key biodiversity areas.

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Merck aims to cover 80% of purchased electricity with renewable energies by 2030, having achieved 52.2% in 2024 (52% in 2023, vs 51% in 2023 per ESRS-2 KPI). Procurement uses both bundled (retail green electricity, GO, GEC) and unbundled instruments (Virtual Power Purchase Agreements at 19.9%, US-RECs at 4.5%, I-RECs at 1.8%). VPPAs are the primary lever for Scope 2 reduction. From 2020 to 2024, Scope 2 reduced 30% from 325kt to 227kt CO2e (market-based). Total renewable consumption 572,186 MWh in 2024 of 2,394,720 MWh total energy.

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As part of its own business activities, Merck does not currently carry out any activities to remove or reduce greenhouse gases that are financed via CO2eq certificates (E1-7). The decarbonization strategy focuses on actual emission reductions through energy management, process emissions reduction, material efficiency, mode shift, renewable energy purchase, and supplier decarbonization — not on offsets or removals.

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Primary Scope 1 lever. NF3 abatement projects at Ulsan, South Korea and Hometown, USA reduced 385,743 tCO2e in 2024 in the Electronics business sector. Process Gas Reduction (Freon) initiative in Life Science cut 12,655 tCO2e. From 2020 to 2024, Scope 1 reduced 53% (vs 50% target by 2030) — target achieved early; now stabilizing. Full implementation expected by end 2029.

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EDISON program in Life Science achieved 3,840 tCO2e reduction in 2024 through energy efficiency. On-site photovoltaic investments e.g. Jakarta (Indonesia) site to reduce 12% of site emissions. HVAC optimization across operations network. €10 million CapEx allocated in 2024 to energy management actions; €12 million planned for 2025.

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Primary lever for Scope 3 (52% reduction per gross profit target by 2030, baseline 480 tCO2e/€m gross profit; 2024 achieved 359). Program focuses on assessing supplier SBTi compliance, increasing renewable electricity share at suppliers, and educating suppliers on emission reduction levers. Together for Sustainability (TfS) used to manage 2,695 valid supplier scorecards via EcoVadis. Currently impact is unquantifiable as emissions calculated using industry averages rather than primary data.

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Life Science Mode Shift program reduces emissions from logistics by converting trade lanes from air freight to sea freight. Reduced 1,862 tCO2e in 2024 vs prior year. Expected full implementation by end of 2025.

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Material Efficiency program in Life Science focuses on improving yield and reducing production waste, contributing to Scope 3 cat 1 reductions. Danvers USA Mobius Single-Use process improvement avoided 240 tCO2e in 2024. Full implementation by end 2027. Circularity rate target 70% by 2030 (69.2% in 2024). SMASH Packaging program targets 10% weight reduction, 100% deforestation-free fiber, 100% circular packaging by 2030.

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In April 2022, the Science Based Targets initiative validated and approved Merck's targets: 50% reduction of Scope 1 and Scope 2 by 2030, and 52% reduction of Scope 3 per gross profit by 2030. Climate neutrality target by 2040 along entire value chain.

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