Global Compact CoP

2017 Communication on progress in implementing the ten principles of the Global Compact

We have been a UN Global Compact participant since 2005. As a signatory of the initiative, we have committed ourselves to ten principles based on key UN conventions regarding human rights, labor standards, environmental protection, and anti-corruption. At the same time, the UN Global Compact calls on its signatories to actively engage in propagating the principles within their own sphere of influence.
The following table summarizes the key measures we took in 2017 to support and implement the principles of the Global Compact.

Link: www.unglobalcompact.org

UNGC principles:

Key measures in 2017

Relevant GRI disclosures:

Reference:

Human rights

Principle 1:
Businesses should support and respect the protection of internationally proclaimed human rights.

Key measures in 2017

  • Updated our Code of Conduct, entitled “What guides us”
  • Analyzed the results of our human rights self-assessment
  • Launched an electronic confirmation course on our Human Rights Charter for certain groups and leaders
  • Donated 150 million praziquantel tablets to the World Health Organization to treat , a donation that included Egypt and Uganda for the first time.

Relevant GRI indicators

410-1, 411-1, 103-2: 412, 412-2, 413-1, 413-2

Principle 2:
Businesses should make sure that they are not complicit in human rights abuses.

Key measures in 2017

  • Analyzed the results of our human rights self-assessment
  • Launched an electronic confirmation course on our Human Rights Charter for certain groups and leaders
  • Conducted internal and external audits, assessments and inspections of suppliers with regard to corporate responsibility, and collected self-reported information.

Relevant GRI indicators:

412-3, 414-1, 414-2

Labor standards

Principle 3:
Businesses should uphold the freedom of association and the effective recognition of the rights to collective bargaining.

Key measures in 2017

  • Analyzed the results of our human rights self-assessment
  • Conducted internal audits on workplace aspects of our Human Rights Charter
  • Conducted internal and external audits, assessments and inspections of suppliers with regard to corporate responsibility, and collected self-reported information.

Relevant GRI indicators:

102-41, 402-1, 407-1

Principle 4:
Businesses should support the elimination of all forms of forced and compulsory labor.

Key measures in 2017

  • Conducted internal audits on workplace aspects of our Human Rights Charter
  • Analyzed the results of our human rights self-assessment
  • Published the UK Modern Slavery Statement, which was adopted by our Executive Board, on our website
  • Conducted internal and external audits, assessments and inspections of suppliers with regard to corporate responsibility, and collected self-reported information.

Relevant GRI indicators:

409-1

Principle 5:
Businesses should support the effective abolition of child labor.

Key measures in 2017

  • Analyzed the results of our human rights self-assessment
  • Conducted internal audits on workplace aspects of our Human Rights Charter
  • Participated in the kick-off conference of the Responsible Mica Initiative in Delhi: jointly announced a five-year action plan for a responsible mica supply chain
  • The Indian organization IGEP performed monthly inspections on mica mines and mica processors
  • Conducted internal and external audits, assessments and inspections of suppliers with regard to corporate responsibility, and collected self-reported information.

Relevant GRI indicators:

408-1

Principle 6:
Businesses should support the elimination of discrimination in respect of employment and occupation.

Key measures in 2017

  • Conducted internal audits on workplace aspects of our Human Rights Charter
  • Identified focus areas to achieve our 2021 target of maintaining a 30% representation of women in leadership roles ( 4+)
  • Expanded internal diversity initiatives.

Relevant GRI indicators:

102-8, 202-1, 202-2, 401-1, 401-3, 404-1, 404-3, 405-1, 405-2, 406-1

Environmental stewardship

Principle 7:
Businesses should support a precautionary approach to environmental challenges.

Key measures in 2017

  • Recertified environmental management systems to updated version of (Group certificate for 83 sites)
  • Annually reduced CO2 emissions (reduction target by 2020: 20% versus 2006 baseline)
  • Implemented more than 300 climate impact mitigation projects since 2012
  • Analyzed and assessed our water management practices with the goal of implementing a sustainable water management system at sites with high consumption levels by 2020
  • Implemented measures to ensure product safety (e.g. , , ) as well as plant and process safety (e.g. Risk Management Process)
  • Had internal and external audits performed
  • Introduced the Waste Scoring System of our company with the goal of reducing the environmental impact of our waste by 5% by 2025.

Relevant GRI indicators:

201-2, 301-1, 302-1, 303-1, 305-1, 305-2, 305-3, 305-6, 305-7

Principle 8:
Businesses should undertake initiatives to promote greater environmental responsibility.

Key measures in 2017

  • Systematically examined potential energy savings at our production facilities
  • Reduced maximum CO2 emissions for new company vehicles as of January 1, 2017
  • Offered employees sustainable mobility options such as Jobtickets and rental bicycles
  • Labeled products to provide information on their use and disposal.

Relevant GRI indicators:

301 – 308

Principle 9:
Businesses should encourage the development and diffusion of environmentally friendly technologies.

Key measures in 2017

  • Developed sustainable products such as technologies, raw materials for natural cosmetics and green alternatives to chemicals
  • Developed a new, sustainable packaging strategy
  • Used and took back eco-friendlier reusable packaging
  • Updated a recycling program for our Life Science customers.

Relevant GRI indicators:

302-4, 302-5, 305-5

Anti-corruption

Prinzip 10:
Businesses should work against corruption in all its forms, including extortion and bribery.

Key measures in 2017

  • Redesigned our Business Partner Risk Management process
  • Performed internal corruption audits
  • Strategically reorganized our Group function
  • Trained employees on anti-corruption
  • Provided global SpeakUp Line for employees to report corruption anonymously
  • Published annual EFPIA transparency report
  • Updated our anti-corruption guideline, for instance regarding rules for gifts and invitations.

Relevant GRI indicators:

102-16, 102-17, 205-1, 205-2, 205-3, 415-1

Schistosomiasis
A parasitic disease spread in warm lakes and ponds by snails that serve as intermediate hosts.
Role
Merck KGaA, Darmstadt, Germany uses a market-oriented system to rate positions within the company. To facilitate consistency across the organization, each position is assigned a specific role, with an overarching job architecture classifying each role as one of 11 levels, 15 functions and an array of career types (Core Operations, Services & Support Groups; Experts; Managers; Project Managers).
ISO 14001
This international environmental management standard sets globally recognized requirements for an environmental management system.
REACH
A European Union chemical regulation (EC No. 1907/2006) that took effect on June 1, 2007. REACH stands for Registration, Evaluation, Authorization, and Restriction of Chemicals.
Globally Harmonized System of Classification and Labelling of Chemicals (GHS)
An international standard system to classify chemicals that covers labeling as well as safety data sheets.
Global Product Strategy
An initiative of the International Council of Chemical Associations (ICCA) through which participating companies of the chemical industry make a commitment to comprehensive product responsibility.
EHS
Environment, Health and Safety describes environmental management, health protection and occupational safety throughout the company.
Liquid Crystals (LC)
Liquid crystals are a hybrid of a crystalline and liquid state. In general, molecules are perfectly arranged only when in a solid crystal state, in contrast to the liquid state, when they move around chaotically. However, liquid crystals are a hybrid of the two states: Although they are liquid, they exhibit a certain crystalline arrangement. Their rod-shaped molecules align themselves like a shoal of fish. In addition, they respond to the electromagnetic waves of light like tiny antennae. Therefore, such swarms of molecules can either allow specially prepared “polarized” light to pass through, or they can block it. This takes place in the pixels of liquid crystal displays – as it does similarly in liquid crystal windows, which can provide shade against sunlight.
Compliance
Adherence to laws and regulations as well as to voluntary codices that are internal to Merck KGaA, Darmstadt, Germany. Compliance is a component of diligent corporate governance.

GRI disclosures

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