Merck & Company, Inc. · NYSE:MRK
Merck & — ESG Presentation (February 2022)
53 slides from Merck &'s sustainability presentation, February 2022
Slide 1: ESG Investor Event
ESG Investor Event
Slide 2: Agenda
Agenda Opening Remarks Rob Davis | Chief Executive Officer and President Driving Long-term Business Value through ESG Caroline Litchfield | Executive Vice President and Chief Financial Officer Merck’s ESG Approach & Strategy Julie Gerberding | Chief Patient Officer and Executive Vice President, Popu
Slide 3: Forward-looking statement of Merck & Co., Inc.
Forward-looking statement of Merck & Co., Inc., Kenilworth, N.J., USA This presentation of Merck & Co., Inc., Kenilworth, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The
Slide 4: Opening Remarks
Opening Remarks Rob Davis Chief Executive Officer and President
Slide 5: Our Mission
Our Mission At Merck, our mission is to save and improve lives of generations to come. 5
Slide 6: We Aspire to be the Premier Research-Intensive Biopharmaceutical Company
We Aspire to be the Premier Research-Intensive Biopharmaceutical Company… Oncology $49B 130+ Vaccines Annual Revenue Years of Leadership Hospital & Specialty $10B Animal Health ~68K R&D Expenses1 Employees ….and demonstrate our commitment to patients and population health by being the leader in *Fig
Slide 7: Our ESG Efforts are Grounded in Our Core Values
Our ESG Efforts are Grounded in Our Core Values Patients Respect for First People Responsibility to people and animals Respect, inclusion, and accountability who need our medicines and vaccines to our employees Innovation and Ethics and Scientific Integrity Excellence Meeting the most critical needs
Slide 8: Driving Long-Term Business Value Through ESG
Driving Long-Term Business Value Through ESG Caroline Litchfield Executive Vice President and Chief Financial Officer
Slide 9: Driving Long-Term Business Value Through ESG
Driving Long-Term Business Value Through ESG Environmental Product Affordability Investment in Diverse, Inclusive, and Sustainability for Ethics and and Accessibility Medicines and Vaccines Healthy Workforce Human and Animal Values Solutions Health $10 Billion R&D spend 40 Countries $2.3 Billion $1
Slide 10: Our ESG Strategy and Approach
Our ESG Strategy and Approach Julie Gerberding Chief Patient Officer and Executive Vice President, Population Health and Sustainability
Slide 11: Our ESG Strategy is Fundamental to Our Long-term Success
Our ESG Strategy is Fundamental to Our Long- term Success Environmental Access to Health Employees Ethics & Values Sustainability We have prioritized eight global goals where we are positioned to have the biggest impact: SDG 3 (Good Health and Well-being) is at the core of our business and is aligne
Slide 12: Our ESG Goals Challenge Us to Drive Change
Our ESG Goals Challenge Us to Drive Change Environmental Access to Health Employees Ethics & Values Sustainability Further advance health equity Increase representation in senior Achieve carbon neutrality across Foster a “Speak Up” culture by reaching 30 million people in management roles by 2024: o
Slide 13: Governing ESG at Merck
Governing ESG at Merck Addressing risks and opportunities to drive long-term business value through concrete strategies and actions, resources, and investments that target the major business and societal trends relevant to our ESG pillars. Oversees ESG matters as a whole Board of Directors and throu
Slide 14: Merck is a Recognized Leader in ESG
Merck is a Recognized Leader in ESG ESG Awards Robust ESG Disclosure* Working Mother’s World’s Most Admired Hall of Fame Companies 2020 GRI Culture of Employer of the year #1 in Pharmaceuticals - Financially + Health for Material ESG Disclosures** Business Stakeholder Capitalism Metrics 100 Best Cor
Slide 15: Access to Health
Access to Health Eliav Barr Senior Vice President, Global Medical Affairs
Slide 16: Enabling Access to Innovative Medicines and Vaccines Creates a Healthier Society
Enabling Access to Innovative Medicines and Vaccines Creates a Healthier, More Equitable Society in Which Communities and Business Can Thrive 16
Slide 17: We Actively Address Unmet Medical Needs Around the World
We Actively Address Unmet Medical Needs Around the World Planning for Access During Enabling Patient Access Advancing Health Equity Development 17
Slide 18: Expanding Access to Treat COVID-19
Expanding Access to Treat COVID-19 • Molnupiravir is our investigational oral antiviral medicine for the treatment of mild-to-moderate COVID-19 in adults • Partnered with governments and local manufacturers • Accelerated the availability of molnupiravir in more than 100 low-and middle-income countri
Slide 19: Planning for Access During Development
Planning for Access During Development Expanded Access Programs Diversity in Clinical Trials Reaching patients with The National Medical serious or life-threatening Fellowship Diversity in diseases, who are ineligible Clinical Trials Research or unable to participate in Program (NMF) selected a clin
Slide 20: Access to Health
Access to Health Louise Houson Senior Vice President, Global Market Access
Slide 21: Enabling Patient Access for our Medicines and Vaccines
Enabling Patient Access for our Medicines and Vaccines Partnerships • Initiated dedicated affordability solutions in 40 countries, as of 2020 • Enabled reinsurers and insurance companies to develop accessible health insurance products to drive greater inclusion GAVI Partnership for Vaccines Photo Pl
Slide 22: Advancing Health Equity with our Social Investments
Advancing Health Equity with our Social Investments MECTIZAN® Merck Foundation Impact Investments Merck for Mothers Donation Program $1 billion 300 million 9+ million 13+ million in contributions since the people in low- and middle- income people reached in 2019 women reached since inception in foun
Slide 23: Our Commitments to Expanding Access to Health
Our Commitments to Expanding Access to Health Enable 100 million more Reach at least 75% of Further advance health people to access our countries around the world equity by reaching 30 million innovative portfolio globally annually with our products people in low- and middle- through access strategi
Slide 24: Employees
Employees Steve Mizell Executive Vice President and Chief Human Resources Officer
Slide 25: Cultivating a Diverse, Inclusive, and Healthy Workforce
Cultivating a Diverse, Inclusive, and Healthy Workforce Improves All Aspects of our Business and Enables Us to Better Address the Needs of All Stakeholders 25
Slide 26: We Better Serve Our Stakeholders By:
We Better Serve Our Stakeholders By: Accelerating Global Diversity Promoting a Culture of and Inclusion (GD&I) Wellbeing 26
Slide 27: Our Commitments to Accelerating Global Diversity and Inclusion
Our Commitments to Accelerating Global Diversity and Inclusion Increase representation in senior management Maintain or exceed our current inclusion index roles by 2024 score by 2025 2020 2024 Group Baseline Goal Women (Global) 31% 40% Black/African Americans 3% 10% (US) Hispanics/Latinos (US) 5% 10
Slide 28: Accelerating Global Diversity & Inclusion at Merck
Accelerating Global Diversity & Inclusion at Merck GD&I Ambassador Teams Employee Business Resource Groups (EBRGs) Our EBRGs represent a diverse set 5 of interests and affinities, from: • Alianza Diversity • Asia Pacific Association Ambassador • capAbility Network Teams • Interfaith Organization • L
Slide 29: Our Global Impact
Our Global Impact CEO Action for Diverse Supplier OneTen Additional External Diversity and Inclusion Spend Initiative Engagements include: • Year Up • Paradigm for Parity • The Valuable 500 • International Labor OneTen helped Organization’s Global Over $2 billion hire 17,000 Black Business Disabilit
Slide 30: Our Commitment to Promoting a Culture of Wellbeing
Our Commitment to Promoting a Culture of Wellbeing Maintain or exceed our current employee engagement index score by 2025 30
Slide 31: Supporting and Developing Healthy Habits
Supporting and Developing Healthy Habits 84% of Prevention Balance employees feel 100% tobacco free in US 9,860 employees their manager received daily mindful sessions to help supports a 90% globally reduce distractions and stress and improve overall mental wellbeing in culture of well- 2021 being i
Slide 32: Environmental Sustainability
Environmental Sustainability Sanat Chattopadhyay Executive Vice President and President, Merck Manufacturing Division
Slide 33: Mitigating the Impacts of Climate Change and Protecting Our Planet's Resources
Mitigating the Impacts of Climate Change and Protecting Our Planet’s Resources Contributes to Improved Global Health and Drives Long-Term Business Value 33
Slide 34: We Manage Our Environmental Impact By:
We Manage Our Environmental Impact By: Designing new products, packaging, Reducing impacts across our value Driving efficiency in our operations and facilities to minimize impact chain 34
Slide 35: Our Commitments to Climate Action
Our Commitments to Climate Action Achieve carbon Reduce Scope 1 & 2 Source 100% of our neutrality across our emissions 46% and Scope purchased electricity operations by 2025 3 emissions 30% by 2030, from renewables by 2025 (Scopes 1 & 2 GHG from a 2019 baseline emissions) Our absolute emission reduc
Slide 36: Strategies to Achieve Our Climate Goals
Strategies to Achieve Our Climate Goals Energy Efficient Facilities Low Carbon Transition Playbook Virtual Power Purchase Agreements ENERGY STAR Guides our short- and long- New VPPAs will address 2021 Partner of the Year— Sustained Excellence Award term plans to reduce 35% of our Scope 2 carbon inte
Slide 37: Our Approach to Green Buildings
Our Approach to Green Buildings Merck South San Francisco Research Facility • 308,000 sq. ft., nine-story tower • 35% more energy efficient vs conventional building • 235kW solar panel generates ~428,200 kWh renewable energy • LEED Zero* for Carbon & Energy • WELL* Silver certified *A complement to
Slide 38: Driving Efficiency in Our Operations
Driving Efficiency in Our Operations Carbon Water Waste 57% hazardous 50,000 14% less water waste and 80% metric tons of used in 2020 non-hazardous carbon versus our 2015 waste avoided/year baseline beneficially reused in 2020 The Sustainability Capital Fund helped our sites complete more than 95 pr
Slide 39: Designing New Products & Packaging to Minimize Environmental Impact
Designing New Products & Packaging to Minimize Environmental Impact Product Stewardship and “Green-By-Design” Approach 100% of new human health products launched in 2020 were reviewed for environmental impact and improvement in packaging Green Chemistry Product yield ↑ 5x Manufacturing time ↓ 25% Wa
Slide 40: Building a Sustainability Culture
Building a Sustainability Culture 40
Slide 41: Reducing Impacts Across Our Value Chain
Reducing Impacts Across Our Value Chain 41
Slide 42: Ethics & Values
Ethics & Values Jennifer Zachary Executive Vice President, General Counsel and Corporate Secretary
Slide 43: Investing in Compliance, Risk Management, and Transparency
Investing in Compliance, Risk Management, and Transparency Enhances Stakeholder Trust and Confidence 43
Slide 44: Maintaining our Reputation as a Trusted Company
Maintaining our Reputation as a Trusted Company Code of Conduct Supply Chain Risk Data Security and Privacy Management 44
Slide 45: Our Commitment to Upholding our Values and Standards
Our Commitment to Upholding our Values and Standards Foster a “Speak Up” culture by maintaining or exceeding the current percentage of our employees who respond favorably when surveyed about our efforts to promote speaking freely 45
Slide 46: Ensuring Compliance in Our Operations
Ensuring Compliance in Our Operations Office of Ethics and Speak Up Program Annual Ethics and Policy Certification Selected employees must certify adherence to the Code of Conduct and Corporate Policies on: • Preventing bribery and corruption > 99% of • Antitrust-law employees compliance and conflic
Slide 47: Reducing Risk in Our Supply Chain
Reducing Risk in Our Supply Chain Business Partner Code of Conduct Supplier Due Diligence Assessments and Supplier Performance Expectations Examples of our due diligence include: • Anti-bribery and corruption • Conflict minerals • Denied-party screening • Ethics and compliance • Financial solvency •
Slide 48: Our Commitment to Data Security and Privacy
Our Commitment to Data Security and Privacy Maintain 100% compliance to regulatory requirements for active incident monitoring, risk/harm analysis and on-time notification of data breaches Zero privacy breaches requiring notification to individuals or government authorities in 2020 48
Slide 49: Promoting Trust with Our Global Privacy Program
Promoting Trust with Our Global Privacy Program 1st company to obtain regulatory approval in the EU for Binding Corporate Rules 49
Slide 50: Closing Remarks
Closing Remarks Rob Davis Chief Executive Officer and President
Slide 51: Thank you
Thank you Merck is committed to a healthy and inclusive future for our business and society. "We try never to forget that medicine is for the people. It is not for the profits. The profits follow, and if we have remembered that, they have never failed to appear. The better we have remembered it, the
Slide 52: ESG Investor Event Q&A
ESG Investor Event Q&A Steve Mizell Julie Gerberding Sanat Chattopadhyay Rob Davis Caroline Litchfield Eliav Barr Jennifer Zachary Executive Vice President Chief Patient Officer Executive Vice Chief Executive Officer Executive Vice Senior Vice President, Executive Vice & Chief Human & Executive Vice
Slide 53: Thank you
MERCK INVENTING FOR LIFE Thank you