In order to identify the material non-financial topics relevant to our stakeholders as well as to our long-term business success, we once more conducted a materiality analysis as defined in the G4 Guidelines of the Global Reporting Initiative (GRI). This process involved identifying the important issues, prioritizing them, and validating them with our Corporate Responsibility (CR) Committee.
In the first step, we identified more than 70 current CR topics for the pharmaceutical and chemical industries. For this, we used various information sources, including our experience from previous materiality analyses and CR reports, the health care sector standards of the Sustainability Accounting Standards Board (SASB), analyses of capital market requirements, and the dialogues with various stakeholders.
We discussed the options internally and narrowed it down to 46 issues, which became the focus of an online international survey conducted on some of our stakeholders. We asked participants to rank how relevant the 46 topics are to Merck, as well as to rate Merck's performance with regard to them. Around 120 people from across 30 countries took part in the survey; two-thirds were internal stakeholders and one-third were external stakeholders. Among them were rating agencies, suppliers, scientists, researchers, and employees involved in corporate responsibility, as well as representatives from the political arena, non-governmental organizations, and federations. In assessing the results, we gave equal consideration to the responses of all stakeholders.
In particular, participants rated product responsibility as being especially important, and they overwhelmingly rated Merck's performance in this area as good to very good. Combined with other analysis results, the stakeholders' responses showed us what they think of Merck's CR performance, as well as which aspects they consider relevant to Merck. The stakeholders' responses were also utilized in our 2014 Materiality Analysis.
During a materiality workshop, representatives from the CR Committee validated the top-ranked issues, discussed the strengths and weaknesses of the management system Merck uses to steer topics, and identified areas that Merck needs to address. This resulted in 27 issues that are material to Merck, which are also the focus of this CR Report. These coincide for the most part with topics that we identified in previous materiality analyses. This report describes our management approach to these 27 issues of particular importance to our stakeholders and company, and provides details on measures, achievements, challenges, and goals for some of them.
The results of the materiality analysis are presented in the 2014 materiality matrix.
Materiality matrix
Because our stakeholders expect transparent reporting on more than just these 27 topics, our report includes other topics as well, which will be re-assessed in future materiality analyses.
The following table shows where topics identified as material are relevant along the value chain: upstream in our supply chain, in the course of our activities, or downstream, i.e. customers and patients.
The table furthermore indicates to which of Merck's businesses and external stakeholders the topic applies. The topics are linked to the respective chapters in this report.
Material topics |
Relevance along the value chain |
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Upstream activities |
Internal activities by business sector |
Downstream activities |
Material for the following stakeholders |
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Healthcare |
Life Science |
Performance Materials |
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Group-wide topics |
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Compliance |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Product responsibility |
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Medicines to combat rare and neglected diseases |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Counterfeit medicines |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Bioethics |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Disposal and recycling of chemicals, single-use products and other products |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Interaction with players in the health industry |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Labeling of chemicals |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Clinical trials |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Pricing |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Product innovations and sustainable product design |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Product quality |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Product safety |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Transport and storage safety |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Drug safety |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Access to health |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Employees |
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Employee engagement |
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Customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Occupational health & safety |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Good leadership |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Recruiting and retaining talent |
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Customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Diversity and equal opportunity |
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Capital market community, customers, suppliers / service providers, policy makers, business associations, scientists and researchers |
Advanced training and continuing education |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Environment |
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Waste prevention and recycling |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Energy efficiency |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Process and plant safety |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Greenhouse gas emissions |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Supply chain |
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Social standards in the supply chain |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
Environmental standards in the supply chain |
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Capital market community, customers, suppliers / service providers, NGOs / civil society, policy makers, business associations, scientists and researchers |
