GRI Box&nbsp;

G4-4

Primary brands, products, and services

Company Profile
Products

G4-5

Location of the organization’s headquarters

Company Profile
Share ownership by country

G4-6

Number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report

G4-7

Nature of ownership and legal form

G4-8

Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries)

Company Profile
Management Employees
Indicators Employees
Indicators Economics
Net sales
Capitalization
Consolidated Balance Sheet

G4-9

Scale of the reporting organization

G4-10

Total number of employees by employment contract and gender

Supervised workers such as temps are currently not logged in our employee data system. We are investigating possibilities to record information on supervised workers throughout the company.

Management Employees
Indicators Employees

G4-11

Percentage of total employees covered by collective bargaining agreements

Employee Engagement
Indicators Employees

G4-12

Organization's supply chain

Management Suppliers
Supply chain

G4-13

Significant changes during the reporting period regarding size, structure, ownership, or its supply chain

Management Suppliers
Company Profile

G4-14

Whether and how the precautionary approach or principle is addressed by the organization

Management Environment
Transport and storage safety
Plant and process safety
Occupational health and safety

G4-15

Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses

Values and external initiatives
Responsible care

G4-16

Memberships of associations

Report profile
Company Profile

Identified Material Aspects and Boundaries

G4-17

Entities included in the organization's consolidated financial statements

G4-18

Definition of report content

G4-19

Material Aspects identified in the process for defining report content

G4-20

Material aspects within the organization

G4-21

Material aspects outside the organization

G4-22

Effect of any restatements of information provided in previous reports, and the reasons for such restatements

G4-23

Significant changes from previous reporting periods in the Scope and Aspect Boundaries

Stakeholder Engagement

G4-24

Stakeholder groups engaged by the organization

G4-25

Basis for identification and selection of stakeholders with whom to engage

G4-26

Organization’s approach to stakeholder engagement

G4-27

Key topics and concerns raised through stakeholder engagement

Report Profile

G4-28

Reporting period

G4-29

Date of most recent previous report

G4-30

Reporting cycle

G4-31

Contact point for questions

G4-32

GRI Index

G4-33

External Assurance

CR strategy and organization
Management
Statement of Corporate Governance

Governance

G4-34

Governance structure of the organization

G4-35

Process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees

CR strategy and organization
Procedures of the Corporate Bodies

G4-36

Responsibility for economic, environmental and social topics

CR strategy and organization

G4-37

Processes for consultation between stakeholders and the highest governance body

Stakeholder dialogue
Employee Engagement

G4-38

Composition of the highest governance body and its committees

Management
Statement of Corporate Governance
The Executive Body

G4-39

Indicate whether the Chair of the highest governance body is also an executive officer

Statement of Corporate Governance
Management

G4-40

Nomination and selection processes for the highest governance body and its committees

Diversity and inclusion
Corporate Bodies
Objectives of the Supervisory Board

G4-41

Processes for the highest governance body to ensure conflicts of interest are avoided and managed

Compliance
Corporate Governance Practices

G4-42

Highest governance body's and senior executive's roles in the development, approval, and updating of the organization's CR strategies, policies, and goals

CR strategy and organization
Values and Compliance
Report of the Supervisory Board

G4-43

Measures taken to develop and enhance the highest governance body's collective knowledge of economic, environmental and social topics

CR strategy and organization
Executive Board
Statement of Corporate Governance

G4-44

Evaluation of the highest governance body's performance with respect to governance of economic, environmental and social topics

Board of partners
Supervisory Board
Articles of Association

G4-45

Highest governance body's role in the identification and management of economic, environmental and social impacts, risks, and opportunities

CR strategy and organization
Report on Risks and Opportunities
Statement of Corporate Governance
Compliance

G4-46

Highest governance body's role on reviewing the effectiveness of the organization's risk management processes for economic, environmental and social topics

CR strategy and organization
Report on Risks and Opportunities
Report of the Supervisory Board

G4-47

Frequency of highest governance body's review of economic, environmental and social impacts risks, and opportunities

CR strategy and organization
Report on Risks and Opportunities
Report of the Supervisory Board

G4-48

Highest committee or position that formally reviews and approves the organization's sustainability report

Compliance
Values and Compliance

G4-49

Process for communicating critical concerns to the highest governance body

G4-50

Nature and total number of critical concerns that were communicated to the highest governance body

Compliance
Values and Compliance

G4-51

Remuneration policies for the highest governance body and senior executives

Compensation Report

G4-52

Process for determining remuneration

Compensation Report

G4-53

How stakeholders' views are sought and taken into account regarding remuneration

Recruiting and retaining talent
Compensation Report

G4-54

Ratio of annual total compensation for the organization's highest-paid individual to the median annual total compensation for all employees in the same country

Competitive salaries and additional benefits increase not only our attractiveness as an employer; they also motivate employees and build loyalty to the company. At Merck KGaA, Darmstadt, Germany, compensation is based on market analyses in the relevant field and the value of the respective position, as well as the employee's skill set and performance. Our Global Rewards Policy defines the framework for compensation and benefits across the entire company. We strive to offer all our employees the most comparable compensation structures possible. In addition to this, we monitor compliance with minimum standards. We do not consider the information required under G4-54 and G4-55 to be relevant to assessing the fairness of our compensation structures.

G4-55

Ratio of percentage increase in annual total compensation for the organization's highest-paid individual to the median percentage increase in annual total compensation for all employees in the same country

Competitive salaries and additional benefits increase not only our attractiveness as an employer; they also motivate employees and build loyalty to the company. At Merck KGaA, Darmstadt, Germany, compensation is based on market analyses in the relevant field and the value of the respective position, as well as the employee's skill set and performance. Our Global Rewards Policy defines the framework for compensation and benefits across the entire company. We strive to offer all our employees the most comparable compensation structures possible. In addition to this, we monitor compliance with minimum standards. We do not consider the information required under G4-54 and G4-55 to be relevant to assessing the fairness of our compensation structures.

Ethics and Integrity

G4-56

Organization's values, principles, standards and norms of behavior

Values and external initiatives
Human rights
Compliance

G4-57

Internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity

Compliance

G4-58

Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity

Management Suppliers
Diversity and inclusion
Compliance

GRI Index: Company and Report Profile: Company and Report Profile

Economic Performance Indicators

Specific Standard Disclosures

DMA* and Indicators

Comment

Link

External Assurance

*	Disclosures on Management Approach.
	KPMG AG Wirtschaftsprüfungsgesellschaft has provided limited assurance on the indicators in the chapter "Facts and figures", including explanatory notes, in the online Corporate Responsibility Report for the business year 2014 of Merck KGaA, Darmstadt, Germany. You can find the Independent Assurance Report in the Assurance Report
	KPMG AG Wirtschaftsprüfungsgesellschaft has audited the Consolidated Financial Statements together with the Group Management’s Report for the business year from January 1 to December 31, 2014 of Merck KGaA, Darmstadt, Germany. You can find the Independent Auditor’s Report in the Auditor’s report

Aspect: Economic Performance

G4-DMA

Management Approach

Economic performance
Pension Plans
Report on Risks and Opportunities
Employee Engagement

G4-EC1

Direct economic value generated and distributed

Income Statement
Cash Flow Statement
Figures by division, country and region
Personnel expenses
Indicators Society

G4-EC2

Financial implications and other risks and opportunities for the organization's activities due to climate change

We report in detail on various aspects of climate change as part of our participation in the Carbon Disclosure Project (CDP).

Climate protection
Global Compact CoP
CDP
Report on Risks and Opportunities

G4-EC3

Coverage of the organization's defined benefit plan obligations

Indicators Employees
Pension Plans

G4-EC4

Financial assistance received from government

Accounting policies for property, plant and equipment
Property, plant and equipment
Research and development spending

Aspect: Market Presence

G4-DMA

Management Approach

Management Employees
Good leadership
Diversity and inclusion
Employee Engagement

G4-EC5

Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation

This indicator is not relevant to us, which is why we do not collect data on the ratio of the standard entry level wage compared to local minimum wage. Being a pharmaceutical and chemical company, we employ highly qualified individuals. Our Global Rewards Policy applies to all our subsidiaries worldwide and guarantees a systematic compensation structure. Base pay is oriented to the median base pay, and short-term variable compensation is based on the third quartile of the relevant reference market. The overall compensation package thus exceeds the market median.

Indicators Employees
Human Rights Charter

G4-EC6

Proportion of senior management hired from the local community at significant locations of operation

We encourage both local hiring and international appointments across all levels of the hierarchy. The percentage of local managers is not recorded as it is not relevant to our strategic personnel planning.

Diversity and inclusion

Aspect: Procurement Practices

G4-DMA

Management Approach

Management Suppliers
Supply chain

G4-EC9

Proportion of spending on local suppliers at significant locations of operation

Supply chain

GRI Index: Economic Performance Indicators: Economic Performance Indicators

Environmental Performance Indicators

Specific Standard Disclosures

DMA* and Indicators

Comment

Link

External Assurance

*	Disclosures on Management Approach.
	KPMG AG Wirtschaftsprüfungsgesellschaft has provided limited assurance on the indicators in the chapter "Facts and figures", including explanatory notes, in the online Corporate Responsibility Report for the business year 2014 of Merck KGaA, Darmstadt, Germany. You can find the Independent Assurance Report in the Assurance Report
	KPMG AG Wirtschaftsprüfungsgesellschaft has audited the Consolidated Financial Statements together with the Group Management’s Report for the business year from January 1 to December 31, 2014 of Merck KGaA, Darmstadt, Germany. You can find the Independent Auditor’s Report in the Auditor’s report

Aspect: Energy

G4-DMA

Management Approach

Climate protection
Management Environment
Sustainable products

G4-EN3

Energy consumption within the organization

Climate protection
Resources
Indicators Environment

G4-EN4

Energy consumption outside of the organization

Climate protection
Indicators Environment

G4-EN5

Energy intensity

Sustainable products
Examples of products from our Performance Materials division

G4-EN6

Reduction of energy consumption

We are currently only calculating the CO₂ savings from measures we have implemented. In future, we plan on measuring the reduction in energy consumption as well.

G4-EN7

Reductions in energy requirements of products and services

Aspect: Emissions

G4-DMA

Management Approach

Climate protection

G4-EN15

Direct greenhouse gas (GHG) emissions (Scope 1)

Climate protection
Indicators Environment

G4-EN16

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Climate protection
Indicators Environment

G4-EN17

Other indirect greenhouse gas (GHG) emissions (Scope3)

Climate protection
Indicators Environment
Carbon Disclosure Project

G4-EN18

Greenhouse gas (GHG) emissions intensity

Climate protection
Carbon Disclosure Project

G4-EN19

Reduction of greenhouse gas (GHG) emissions

G4-EN20

Emissions of ozone-depleting substances (ODS)

G4-EN21

NO_X, SO_X, and other significant air emissions

Plant and process safety
Waste management

Aspect: Effluents and Waste

G4-DMA

Management Approach

G4-EN22

Total water discharge by quality and destination

Water
Indicators Environment

G4-EN23

Total weight of waste by type and disposal method

Waste management
Indicators Environment

G4-EN24

Total number and volume of significant spills

Plant and process safety
Indicators Environment

G4-EN25

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel convention annex I, II, III, and VIII, and percentage of transported waste shipped internationally

Sustainable products
Packaging
Reuse and recycling

G4-EN26

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization's discharges of water and runoff

Water

Aspect: Products and Services

G4-DMA

Management Approach

G4-EN27

Extent of impact mitigation of environmental impacts of products and services

Sustainable products

G4-EN28

Percentage of products sold and their packaging materials that are reclaimed by category

Packaging
Reuse and recycling

Aspect: Compliance

G4-DMA

Management Approach

Management Environment

G4-EN29

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

Management Environment

Aspect: Transport

G4-DMA

Management Approach

Transport and storage safety

G4-EN30

Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce

We do not consider relevant any data queried under this indicator that goes beyond the data already reported.

Transport and storage safety
Indicators Environment

Aspect: Supplier Environmental Assessment

G4-DMA

Management Approach

G4-EN32

Percentage of new suppliers that were screened using environmental criteria

G4-EN33

Significant actual and potential negative environmental impacts in the supply chain and actions taken

Aspect: Environmental Grievance Mechanisms

G4-DMA

Management Approach

Management Suppliers
Management Environment

G4-EN34

Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

GRI Index: Environmental Performance Indicators: Environmental Performance Indicators

Social Performance Indicators

Specific Standard Disclosures

Labor Practices and Decent Work

DMA* and Indicators

Comment

Link

External Assurance

*	Disclosures on Management Approach.
	KPMG AG Wirtschaftsprüfungsgesellschaft has provided limited assurance on the indicators in the chapter "Facts and figures", including explanatory notes, in the online Corporate Responsibility Report for the business year 2014 of Merck KGaA, Darmstadt, Germany. You can find the Independent Assurance Report in the Assurance Report
	KPMG AG Wirtschaftsprüfungsgesellschaft has audited the Consolidated Financial Statements together with the Group Management’s Report for the business year from January 1 to December 31, 2014 of Merck KGaA, Darmstadt, Germany. You can find the Independent Auditor’s Report in the Auditor’s report

Aspect: Employment

G4-DMA

Management Approach

Management Employees
Recruiting and retaining talent
Occupational health and safety

G4-LA1

Total number and rates of new employee hires and employee turnover by age group, gender, and region

Indicators Employees

G4-LA2

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation

At our German sites Darmstadt, Grafing, and Gernsheim (24% of the company's total workforce), part-time employees receive the same job benefits as full-time ones. Employees with temporary contracts, however, are not entitled to all company benefits; for instance, they are not entitled to a company pension.

Recruiting and retaining talent
Occupational health and safety
Indicators Employees

G4-LA3

Return to work and retention rates after parental leave, by gender

Recruiting and retaining talent
Indicators Employees

Aspect: Labor/Management relations

G4-DMA

Management Approach

Employee Engagement
Management Employees

G4-LA4

Minimum notice periods regarding operational changes, including whether these are specified in collective agreements

The regulations on periods of notice vary worldwide. We apply the rules that are in force locally. It is not relevant for us to log periods of notice at Group level.

Aspect: Occupational Health and Safety

G4-DMA

Management Approach

Occupational health and safety

G4-LA5

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs

Occupational health and safety committees are required by law in Germany, which is why all employees of our German sites Darmstadt, Grafing, and Gernsheim are represented by such a committee at each site. Theses employees account for around 24% of the workforce.

Occupational health and safety

G4-LA6

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region and gender

Occupational health and safety
Indicators Employees

G4-LA7

Workers with high incidence of high risk or diseases related to their occupation

Occupational health and safety

G4-LA8

Health and safety topics covered in formal agreements with trade unions

Our German facilities
Darmstadt, Gernsheim, and
Grafing (around 24% of the total workforce) are subject to a company agreement on occupational health and safety.

Aspect: Training and Education

G4-DMA

Management Approach

Good leadership
Diversity and inclusion
Recruiting and retaining talent

G4-LA9

Average hours of training per year per employee by gender and by employee category

Indicators Employees
Training on specific topics:
Compliance
Safety of drugs
Safety of chemical products
Product-related crime
Animal testing
Diversity and inclusion
Occupational health and safety
Management Environment

G4-LA10

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Diversity and inclusion
Recruiting and retaining talent

G4-LA11

Percentage of employees receiving regular performance and career development reviews, by gender and by employment category

Good leadership
Indicators Employees

Aspect: Diversity and Equal Opportunity

G4-DMA

Management Approach

Diversity and inclusion
Objectives of the Supervisory Board

G4-LA12

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

Because the term "minority" does not mean the same thing across the globe, we do not record this sort of data. Moreover, many countries in which we operate have strict data protection regulations governing the recording of personal employee data.

Diversity and inclusion
Indicators Employees
Executive Board
Supervisory Board
Objectives of the Supervisory Board

Aspect: Equal remuneration for women and men

G4-DMA

Management Approach

Recruiting and retaining talent
Compensation Report

G4-LA13

Ratio of basic salary and remuneration of women to men, by significant locations of operation

The salaries are predicated on the job descriptions 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.

Recruiting and retaining talent

Aspect: Supplier Assessment for Labor Practices

G4-DMA

Management Approach

G4-LA14

Percentage of new suppliers that were screened labor practices criteria

G4-LA15

Significant actual and potential negative impacts for labor practices in the supply chain and actions taken

Aspect: Labor Practices Grievance Mechanisms

G4-DMA

Management Approach

G4-LA16

Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms

Responsible care
Compliance

Human Rights

DMA* and Indicators

Comment

Link

External Assurance

Aspect: Investment

G4-DMA

Management Approach

G4-HR1

Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

Compliance
Management Suppliers

G4-HR2

Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

Human rights

Aspect: Non-discrimination

G4-DMA

Management Approach

Diversity and inclusion

G4-HR3

Total number of incidents of discrimination and corrective actions taken

Diversity and inclusion

Aspect: Freedom of association and collective bargaining

G4-DMA

Management Approach

Management Suppliers
Human rights
Compliance
Human Rights Charter

G4-HR4

Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights

Management Suppliers
Human rights
Compliance
Human Rights Charter

Aspect: Child Labor

G4-DMA

Management Approach

G4-HR5

Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

Management Suppliers
Human rights
Compliance
Human Rights Charter

Aspect: Forced and Compulsory Labor

G4-DMA

Management Approach

G4-HR6

Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor

Compliance
Indicators Compliance

Aspect: Assessment

G4-DMA

Management Approach

Human rights
Compliance

G4-HR9

Total number and percentage of operations that have been subject to human rights reviews or impact assessments

Aspect: Supplier Human Rights Assessment

G4-DMA

Management Approach

Management Suppliers
Human rights
Compliance

G4-HR10

Percentage of new suppliers that were screened using human rights criteria

G4-HR11

Significant actual and potential negative human rights impacts in the supply chain and actions taken

Management Suppliers
Human rights
Compliance

Aspect: Human Rights Grievance Mechanisms

G4-DMA

Management Approach

G4-HR12

Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms

Compliance
Values and Compliance

Society

DMA* and Indicators

Comment

Link

External Assurance

Aspect: Anti-Corruption

G4-DMA

Management Approach

G4-SO3

Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

Compliance
Values and Compliance
Indicators Compliance

G4-SO4

Communication and training in anti-corruption policies and procedures

Values and external initiatives
Compliance
Indicators Compliance

G4-SO5

Confirmed incidents of corruption and actions taken

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

Compliance
Report on Risks and Opportunities

Aspect: Public policy

G4-DMA

Management Approach

Stakeholder dialogue
Code of Conduct

G4-SO6

Total value of political contributions by country and recipient/beneficiary

Stakeholder dialogue
Code of Conduct
Publication of donations made via PACs (EMD Serono)

Aspect: Anti-competitive behavior

G4-DMA

Management Approach

Compliance
Values and Compliance
Report on Risks and Opportunities

G4-SO7

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

Indicators Compliance

Aspect: Compliance

G4-DMA

Management Approach

Compliance
Report on Risks and Opportunities

G4-SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

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

Indicators Compliance
Report on Risks and Opportunities

Aspect: Supplier Assessment for Impacts on Society

G4-DMA

Management Approach

G4-SO9

Percentage of new suppliers that were screened using criteria for impacts on society

G4-SO10

Significant actual and potential negative impacts on society in the supply chain and actions taken

Aspect: Grievance mechanisms for Impacts on Society

G4-DMA

Management Approach

G4-SO11

Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms