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Climate action

We want to do our part to preserve the climate and comply with the Paris Agreement on climate change. Therefore, we have set our own objectives:

By 2030, we intend to lower our direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions by 50% compared with the base year 2020. We aim to achieve this mainly by reducing process-related emissions, implementing energy efficiency measures and purchasing more electricity from renewable sources.

In May 2022, this goal for 2030 was approved by the Science Based Targets initiative (SBTi), which independently assesses and approves company targets based on its strict climate science criteria. This approval by SBTi confirms that we are contributing to limiting global warming to 1.5 °C, thus complying with the requirements of the Paris Agreement.

We also aim to cover 80% of our purchased electricity with renewables by 2030.

Moreover, we aim to reduce our Scope 3 emissions across the entire value chain by 52% compared with 2020 (per euro of gross profit) by 2030. This target was also approved by SBTi.

By 2040, we intend to have achieved climate-neutral operations throughout our entire value chain; this target covers our Scope 1, 2 and 3 emissions.

Roles and responsibilities

Corporate Sustainability, Quality and Trade Compliance is responsible for overseeing all climate action efforts throughout the Group, with our individual sites and business sectors worldwide implementing the necessary measures at the local level. More information can be found under “Environmental protection”.

Our commitment: Standards and legal frameworks

We have three EHS standards in place to manage energy and process-related emissions consistently across the Group, specifically “Energy Management”, “Air Emissions” and “Emissions of Refrigerants”. We use an internal audit process to randomly check compliance with all EHS standards.

Emissions reduced further

In 2023, we reduced our greenhouse gas emissions by nearly 17% compared with the previous year, emitting a total of approximately 1,463,000 metric tons of CO2 equivalents (CO2eq) (2022: 1,760,000).

Our direct emissions (Scope 1) totaled 1,236,000 metric tons of CO2eq (2022: 1,518,000), with process-related emissions accounting for 990.000 metric tons of CO2eq and fuel use accounting for the remainder. Indirect emissions (Scope 2) totaled roughly 227,000 metric tons of CO2eq (2022: 242,000) calculated according to the market-based method (approximately 381,000 metric tons of CO2eq according to the location-based method). Greenhouse gas emission intensity (Scope 1 and 2) amounted to 0.07 Kg of CO2eq per € of net sales in this period (2022: 0.08).

The Greenhouse Gas Protocol defines 15 categories for Scope 3 emissions from upstream and downstream activities. In 2023, these emissions totaled around 4,594,000 metric tons of CO2eq (2022: 6,680,000). Categories 1 and 2 (Purchased Goods and Services and Capital Goods) accounted for 62% (2022: 69%) of our total Scope 3 emissions in this period.

Total greenhouse gas emissions (Scope 1 and 2 of the GHG Protocol)1,2

metric kilotons

 

20203

 

2021

 

2022

 

2023
Group

 

2023
thereof: Merck KGaA, Darmstadt, Germany

Total CO2eq3 emissions4

 

2,152

 

1,951

 

1,760

 

1,463

 

22

thereof:

 

 

 

 

 

 

 

 

 

 

direct CO2eq emissions (Scope 1)5

 

1,827

 

1,626

 

1,518

 

1,236

 

15

indirect CO2eq emissions (Scope 2)6

 

325

 

325

 

242

 

227

 

7

Biogenic CO2 emissions7

 

14

 

15

 

14

 

14

 

0

1

In line with the Greenhouse Gas Protocol, for all previous years greenhouse gas emissions were calculated based on the current corporate structure as of Dec. 31 of the reporting year and retroactively adjusted for acquisitions or divestments of (parts of) companies, or for changes in emission factors (portfolio-adjusted).

2

Baseline for our emission targets is 2020.

3

eq = equivalent.

4

In 2023, we adjusted our Scope 1 and Scope 2 calculations to reflect minor data corrections.

5

In 2023, we adapted the Scope 1 calculations to the modified global warming potentials of the IPCC 6th assessment report (previously IPCC 5th assessment report) and restated previous years accordingly.

6

The figures presented here have been calculated in accordance with the market-based method.

7

We adapted the calculations to the complete Greenhouse Gas Protocol requirements.

 

We have included the following gases in our calculation of direct and indirect CO2eq emissions:

Direct CO2 emissions: CO2, HFCs, PFCs, CH4, N2O, NF3, SF6.

Indirect CO2 emissions: CO2.

Other relevant indirect greenhouse gas emissions (Scope 3 of the GHG Protocol)1

 

 

2020

 

2021

 

2022

 

2023

Total gross other indirect emissions (metric kilotons CO2 equivalents)

 

5,103

 

5,799

 

6,680

 

4,594

Purchased goods & services (category 1)2

 

3,040

 

3,572

 

4,200

 

2,5173

Capital goods (Category 2)2

 

293

 

291

 

388

 

3403

Fuel- and energy-related emissions, not included in Scope 1 or 2 (category 3)

 

102

 

143

 

121

 

115

Upstream transportation & distribution (category 4)

 

264

 

2644

 

319

 

2365

Waste generated in operations (category 5)

 

85

 

79

 

576

 

326

Business travel (category 6)

 

32

 

26

 

78

 

86

Employee commuting (category 7)

 

90

 

94

 

99

 

767

Upstream leased assets (category 8)8

 

-

 

-

 

-

 

-

Downstream transportation & distribution (category 9)

 

8

 

84

 

6

 

105

Processing of sold products (category 10)9

 

-

 

-

 

-

 

-

Use of sold products (category 11)10

 

1,164

 

1,296

 

138211

 

1,137

End-of-life treatment of sold products (category 12)

 

23

 

234

 

2611

 

42

Downstream leased assets (category 13)

 

2

 

2

 

2

 

2

Franchises (category 14)12

 

-

 

-

 

-

 

-

Investments (category 15)

 

0

 

1

 

2

 

1

1

In line with the Greenhouse Gas Protocol, for all previous years, greenhouse gas emissions were calculated based on the current corporate structure as of Dec. 31 of the reporting year and retroactively adjusted for acquisitions or divestments of (parts of) companies, or for changes in emission factors (portfolio-adjusted).

2

The reported figures contain 95-97% of our total spend. The difference stems from smaller sites that are not integrated in our Group-wide purchase volume data. 2020 data are slightly over-reported (approx. 3%) as the currency conversion factor (USD to EUR) from 2021 was used. Non-categorized spends are distributed pro rate to category 1 and 2.

3

We updated environmentally extended input-output analysis (EEIO) factors, and we adjusted our emission calculation approach for service categories using primary supplier data.

4

Due to high efforts for data preparation, we reference 2020 data for 2021.

5

In 2023, we introduced a new and improved calculation methodology based on primary data from suppliers/logistics service providers and an energybased bottom-up calculation approach.

6

We adjusted our calculation methodology to remove non-GHG relevant waste streams.

7

We adjusted our calculation methodology to take into account the results of an internal employee survey on home office use.

8

Already covered under Scope 1 and 2 emissions.

9

Our company produces a huge variety of intermediate products for various purposes. Due to their many applications and our customer structure, the associated greenhouse gas emissions cannot be tracked in a reasonable fashion.

10

In 2023, we adapted the Category 11 calculations to the modified global warming potentials of the IPCC 6th assessment report (previously IPCC 5th assessment report) and restated previous years accordingly.

11

Due to high efforts for data preparation, we partly use 2020 data for 2022.

12

This category is not relevant for us as we do not operate franchises, i.e. businesses operating under a license to sell or distribute another company’s goods or services. Out-licensing in the pharmaceutical sector is not regarded as franchising.

 

Biogenic emissions (Scope 3), if present, are not being recorded.

Transparency on CO2 emissions and energy consumption

We report to CDP on an annual basis. This organization assesses the ways in which companies are working to lower greenhouse gas emissions and minimize the risks and consequences of climate change, along with their strategy for doing so. Companies are rated from A to D-, with A being the top score. In 2023, we scored A- (2022: B) for climate change.

Energy consumption and renewable energy

We consumed 2,337 gigawatt hours of energy in 2023 compared with 2,432 gigawatt hours in 2022. As in the previous year, our energy intensity relative to sales remained at 0.11 kWh/€ in 2023.

In 2023, we further strengthened our focus on purchasing electricity from renewable sources. In this period, we sourced 51% of our purchased electricity from renewable energies, meaning direct supply contracts and energy attribute certificates (2022: 47%). The share of our total energy consumption by renewable energies increased to 23% in 2023 (2022: 20%).

In 2023, we signed virtual power purchase agreements (VPPAs) in Europe for a total of around 300 gigawatt hours (GWh) of renewable energy per year. This means that 100% of our electricity currently purchased in the European Union (EU) and Switzerland will be covered with renewable energy certificates as of 2025.

Energy consumption1

In GWh

 

2020

 

2021

 

2022

 

2023
Group

 

2023
thereof: Merck KGaA, Darmstadt, Germany

Total energy consumption

 

2,382

 

2,463

 

2,432

 

2,337

 

78

Direct energy consumption

 

1,269

 

1,321

 

1,294

 

1,245

 

68

Natural gas

 

1,182

 

1,235

 

1,188

 

1,164

 

59

Liquid fossil fuels2

 

52

 

48

 

70

 

43

 

9

Biomass and self-generated renewable energy

 

35

 

38

 

36

 

38

 

0

Indirect energy consumption

 

1,113

 

1,142

 

1,138

 

1,092

 

10

Electricity

 

950

 

964

 

984

 

982

 

10

Steam, heat, cold

 

163

 

178

 

154

 

110

 

0

Total energy sold

 

0.2

 

0.1

 

0.01

 

0.00

 

0.0

Electricity

 

0.2

 

0.1

 

0.01

 

0.00

 

0.0

Steam, heat, cold

 

0.0

 

0.0

 

0.00

 

0.00

 

0.0

1

In line with the Greenhouse Gas Protocol, for all previous years energy consumption has been calculated based on the current corporate structure as of Dec. 31 of the reporting year and retroactively adjusted for acquisitions or divestments of (parts of) companies, or for changes in emission factors (portfolio-adjusted).

2

Light and heavy fuel oil, liquefied petroleum gas (LPG), diesel, biodiesel, gasoline and kerosene.

We use photovoltaics to produce power at multiple sites.

We currently only record purchased secondary energy – this is primarily electricity and, to a lesser extent, heat, steam and cold. Details on the local energy mix, including the respective percentage of primary energy, renewable energy, etc. are not available. Data on local energy efficiency in electricity or heat generation are not available either. Our production sites are located in countries with a widely varying energy mix.

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