Which topics are key to our long-term, environmentally and socially responsible business success? What expectations do our stakeholders have of us? In which areas do we help create a more sustainable future? To answer these questions, in 2019 we updated the materiality analysis we conducted in 2018, thereby meeting the applicable reporting requirements of the Global Reporting Initiative (GRI) and the German CSR Directive Implementation Act.
Material issues updated and validated
We regularly conduct a comprehensive materiality assessment to help us define key topics for our Corporate Responsibility (CR) management and for our report content.
We conducted our last comprehensive analysis in 2018, which reflected the requirements and expectations that our stakeholders place on us. In the process, we reviewed:
- Relevant regulations
- Goals and positions of our competitors
- Requirements imposed by investor ratings
- Expectations that non-governmental organizations (NGOs) have of the chemical and pharmaceutical industries
- Relevance of various CR topics to our economic environment.
Likewise, we analyzed how our industries, value chain and sites impact sustainable development. For our 2019 CR Report, we updated the existing analysis by including the media as a further external stakeholder group. We additionally conducted a media analysis and integrated the results into our previous approach.
Results of the update
The 35 topics identified as being of significance to our CR strategy and reporting did not change relative to the 2018 analysis. As a result of having incorporated a structured media analysis into the materiality process, the results changed minimally, but this impacted neither the reporting framework nor the contents.
Since our stakeholders additionally expect information and transparency regarding less significant issues, we also report on these, albeit in less detail.
Topics for the non-financial report
The German CSR Directive Implementation Act obliges us to review the “double materiality” of topics according to section 289c (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.
In 2019, we again reviewed the double materiality of the topics identified. Those that fall within the scope of this definition are marked in the materiality matrix and linked to the respective chapters in this report.
Material issues in our value chain
The following table shows where our material issues fall within the value chain: upstream in our supply chain, in the course of activities within our own business sectors, or downstream with our customers and patients. Moreover, we listed the issues to show the breakdown of materiality by stakeholder groups.
Product safety and quality
Material for:
Customers, Merck family, shareholders, government agencies, NGOs, commercial and business partners 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 partners, health systems, patients
Material for:
Customers, government agencies, suppliers, commercial and business partners, communities
Ethical conduct
Material for:
Customers, federations and policy makers, government agencies, NGOs, media, 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 partners, health systems, competitors
Material for:
Customers, federations and policy makers, media, commercial and business partners, health systems, patients
Material for:
Merck family, employees, 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, suppliers, commercial and business partners, customers
Material for:
Employees, employee representatives, suppliers, commercial and business partners, customers, patients
Health for all
Material for:
NGOs, media, commercial and business partners, health systems, patients
Material for:
Merck family, shareholders, NGOs, media, commercial and business partners, health systems, patients
Material for:
NGOs, media, commercial and business partners, 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, employees
Sustainable products
Material for:
Customers, scientists
Attractive employer
Material for:
Employees, employee representatives, Merck family, media
Material for:
Employees, employee representatives, Merck family, shareholders, competitors
Material for:
Employees, employee representatives
Material for:
Employees, employee representatives
Material for:
Employees, employee representatives
Material for:
Employees, employee representatives, government agencies
Material for:
Employees, employee representatives
Technology
Material for:
Customers, Merck family, shareholders, Scientists, health systems, patients
Material for:
Scientists, commercial and business partners, customers, patients
Resource efficiency
Material for:
Government agencies, NGOs, communities, customers
Material for:
Government agencies, NGOs, communities
Environmental protection
Material for:
Federations and policy makers, NGOs, customers
Material for:
Customers, federations and policy makers, government agencies, NGOs, media, suppliers
Material for:
Employees, shareholders, Merck family, government agencies, media
Material for:
Federations and policy makers, government agencies, NGOs
Material for:
Federations and policy makers, government agencies, NGOs