Which issues – in terms of our corporate responsibility – are of particular significance to our long-term success? And what expectations do stakeholders have of our company? In an effort to answer these questions, we regularly conduct materiality assessments that aim to rate sustainability topics according to their importance to our company and external stakeholders. This allows us to align our business activities with their priorities. In applying this approach, we fulfill the requirements of the Global Reporting Initiative (GRI), the international framework on which we’ve based this CR Report, as well as meeting the obligation arising from the CSR Directive Implementation Act that was ratified in Germany in 2017. Consequently, in 2017 we reviewed the results of the comprehensive materiality assessment we conducted in 2016 to ensure they were still up-to-date and relevant.
Validating material issues
In 2016, we conducted a comprehensive materiality assessment in which we evaluated media reports, inquiries from investors and sustainability ratings. We then weighted the issues based on the results of stakeholder surveys and interviews with experts. Both this process and the findings from the materiality assessment were reviewed by internal specialists and the CR Committee.
In 2017, the 43 key issues identified in the 2016 materiality assessment were reviewed and validated by experts from the respective business sectors. In doing so, we took account of the latest developments, updating the analysis where necessary.
Our stakeholders rate product responsibility as very important, including product quality, the safety of chemical products, innovation, and research & development. In terms of issues relevant to our company, two additional topics were identified as a result of the validation process: capacity building was deemed an important component of increasing health awareness and our experts also identified genome editing as a key aspect of bioethics. Both topics have been integrated into the relevant sections.
The topics rated as material form the focus of this CR Report. Since our stakeholders also expect information and transparency from us regarding less significant issues, we also report on these, albeit in less detail.
Identifying issues for non-financial disclosure
The German CSR Directive Implementation Act obliges us to review the “double materiality” of topics according to Section 289 (3) of the German Commercial Code. The principle of double materiality requires companies to disclose non-financial information when the following two criteria are met: Firstly, the information is necessary to understand the company’s business performance, business results and financial situation. And secondly, the information makes it possible to understand how the company’s business activities affect non-financial aspects. We have reviewed the double materiality of the issues validated in 2017, which were identified in the 2016 materiality assessment. The issues that fall within the scope of this definition are marked in the materiality matrix.
Material topics
Material issues in our value chain
The following table shows where our main issues fall within the value chain: upstream in our supply chain, in the course of our own activities, or downstream with customers and patients. Moreover, we have listed the issues to show the breakdown of materiality by business sector and stakeholder group. These topics are linked to the respective chapters in this report.
Product safety and quality
Material for:
Customers, Merck family, Shareholders, Government agencies, NGOs, Commercial and business associates
Material for:
Merck family, Shareholders, Government agencies, NGOs, Health systems, Patients
Material for:
Customers, Merck family, Shareholders, Federations and policy makers, Government agencies, NGOs, Commercial and business associates, Health systems, Patients
Material for:
Customers, Government agencies, Suppliers, Commercial and business associates, Communities
Material for:
Customers, Federations and policy makers, Government agencies, NGOs, Media, Suppliers, Scientists, Commercial and business associates, Health systems, Communities, Competitors
Material for:
Federations and policy makers, Government agencies, NGOs, Communities
Ethical conduct
Material for:
Customers, Federations and policy makers, Government agencies, NGOs, Scientists
Material for:
Merck family, Shareholders, Federations and policy makers, Government agencies, NGOs, Media, Suppliers, Scientists, Patients
Material for:
Government agencies, NGOs, Media, Suppliers, Scientists
Good business practice
Material for:
Employees, Merck family, Shareholders, Government agencies, NGOs, Suppliers, Commercial and business associates, Health systems, Competitors
Material for:
Customers, Federations and policy makers, Media, Commercial and business associates, Health systems, Patients
Material for:
Merck family, NGOs, Media, Communities
Material for:
Federations and policy makers, Government agencies, NGOs, Health systems, Patients
Material for:
Employees, Employee representatives, Merck family, Shareholders, Government agencies
Health for everyone
Material for:
NGOs, Media, Suppliers, Commercial and business associates, Health systems, Patients
Material for:
Merck family, Shareholders, Government agencies, NGOs, Media, Commercial and business associates, Health systems, Patients
Material for:
NGOs, Scientists, Health systems, Patients
Material for:
NGOs, Media, Scientists, Commercial and business associates, Health systems, Patients, Communities, Competitors
Supply chain standards
Material for:
Customers, Merck family, Shareholders, Federations and policy makers, NGOs, Media, Suppliers, Competitors
Human rights
Material for:
Customers, Federations and policy makers, NGOs, Media, Suppliers, Communities
Sustainable products
Material for:
Customers, Scientists
Material for:
Customers
Attractive employer
Material for:
Employees, Employee representatives, Merck family, Media
Material for:
Employees, Employee representatives, Shareholders, Competitors
Material for:
Employees, Employee representatives
Material for:
Employees, Employee representatives
Material for:
Employees, Employee representatives
Material for:
Employees, Employee representatives, Government agencies
Technology
Material for:
Customers, Merck family, Shareholders, Scientists, Health systems, Patients
Resource efficiency
Material for:
Government agencies, NGOs, Communities
Material for:
Government agencies, NGOs, Communities
Climate change
Material for:
Federations and policy makers, NGOs
Material for:
Customers, Federations and policy makers, Government agencies, NGOs, Media, Suppliers