Annual Report 2021

Climate action

We want to do our part to preserve the climate and achieve the Paris Agreement on Climate Change. In 2020, we drew up new objectives: By 2030, we intend to lower our direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions by 50% compared with 2020. This is to be achieved by reducing process-related emissions, implementing energy efficiency measures, and purchasing more electricity from renewable sources. We are also aiming to cover 80% of our purchased electricity with renewables by 2030.

Moreover, we plan to lower our indirect emissions along our entire value chain (Scope 3) by 1,500 metric kilotons of CO2 equivalents (CO2eq) by 2030. By 2040, we intend to have achieved climate-neutral operations throughout our entire value chain, a target that covers our Scope 1, 2 and 3 emissions.

In November 2021, our company decided to join the Science Based Targets initiative. In becoming part of this effort, we have committed ourselves to taking concrete steps to reach the Paris Agreement targets.

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 units worldwide implementing the necessary measures at the local level.

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”, “Emissions”, and “Emissions of Refrigerants”. We utilize an internal audit process to randomly check compliance with all EHS standards.

Emissions reduced

In 2021, we emitted approximately 1,843,000 metric tons of CO2 equivalents (CO2eq) (2020: 2,028,000 metric tons). Our direct emissions (Scope 1) totaled 1,522,000 metric tons of CO2eq, with process-related emissions accounting for 1,261,000 metric tons of CO2eq and fuel use accounting for the remainder. Indirect emissions (Scope 2) totaled roughly 321,000 metric tons calculated according to the market-based method (approximately 385,000 metric tons according to the location-based method, which does not specifically take renewable energy sources into account). Greenhouse gas emission intensity (Scope 1 and 2) amounted to 0.09 kg of CO2eq per € of net sales in this period.

In 2020 and 2021, we focused on creating more transparency on our Scope 3 emissions. The Greenhouse Gas Protocol defines 15 categories for Scope 3 emissions from upstream and downstream activities. In 2021, our emissions totaled 5,716,000 metric tons of CO2eq. Categories 1 and 2 (Purchased Goods and Services and Capital Goods) accounted for the lion’s share, representing 68% 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

 

2018

 

2019

 

20203

 

2021
Group

 

2021 thereof: Merck KGaA, Darmstadt,
Germany

Total CO2eq4 emissions

 

636

 

621

 

2,028

 

1,843

 

153

thereof:

 

 

 

 

 

 

 

 

 

 

direct CO2eq emissions (Scope 1)

 

332

 

341

 

1,706

 

1,522

 

115

indirect CO2eq emissions5 (Scope 2)

 

304

 

280

 

322

 

321

 

38

Biogenic CO2 emissions

 

13

 

13

 

13

 

15

 

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

Includes Versum Materials as of 2020.

4

eq = equivalent

5

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

Other relevant indirect greenhouse gas emissions (Scope 3 of the GHG Protocol)11

 

 

2018

 

2019

 

2020

 

2021

Total gross other indirect emissions (metric kilotons CO2eq2)

 

348

 

339

 

5,030

 

5,716

Purchased goods & services (category 1)3

 

n/a

 

n/a

 

3,040

 

3,572

Capital goods (category 2)3

 

n/a

 

n/a

 

293

 

291

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

 

131

 

127

 

102

 

143

Upstream transportation & distribution (category 4)4

 

n/a

 

n/a

 

264

 

2645

Waste generated in operations (category 5)

 

47

 

50

 

85

 

79

Business travel (category 6)6,7

 

104

 

87

 

32

 

26

Employee commuting (category 7)

 

66

 

75

 

90

 

94

Upstream leased assets (category 8)8

 

0

 

0

 

0

 

0

Downstream transportation & distribution (category 9)4

 

n/a

 

n/a

 

8

 

85

Processing of sold products (category 10)9

 

0

 

0

 

0

 

0

Use of sold products (category 11)4

 

n/a

 

n/a

 

1,091

 

1,213

End-of-life treatment of sold products (category 12)4

 

n/a

 

n/a

 

23

 

235

Downstream leased assets (category 13)

 

0

 

0

 

2

 

2

Franchises (category 14)10

 

0

 

0

 

0

 

0

Investments (category 15)

 

n/a

 

n/a

 

0

 

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

eq = equivalent

3

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.

4

Compared to other Scope 3 categories, the screening of the emissions in this category contains more uncertainties. Their impact cannot be estimated more precisely at this time. We are working on improving the accuracy of these data.

5

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

6

Since 2021, we have applied a new calculation approach for 2021 and 2020. The figure for 2020 was therefore adjusted retrospectively.

7

Air travel, hotel stays, rental car travels, rail travel (German Railway)

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

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.
Details on the calculation (methodology, assumptions, uncertainties) of the Scope 3 categories can be found in the Scope 3 document.

Significant spills

 

 

2018

 

2019

 

2020

 

2021

Total number of significant spills

 

0

 

0

 

0

 

0

Energy efficiency

In 2021, a variety of energy efficiency initiatives helped us save around 1,700 metric tons of CO2eq at our global headquarters in Darmstadt. For instance, we updated heating, ventilation and air conditioning systems, implemented energy-saving lighting concepts.

As part of the energy and water efficiency program of our Life Science business sector, we rolled out new tools in 2021 to help us assess projects for saving energy and water. In addition, we trained 40 employees from sites outside of Germany on energy management.

Slight rise in energy consumption

We consumed 2,454 gigawatt hours of energy in 2021, versus 2,374 gigawatt hours in 2020. Our energy intensity relative to sales totaled 0.12 kWh/€ in 2021.

Energy consumption1

In GWh

 

2018

 

2019

 

2020

 

2021 Group

 

2021 thereof: Merck KGaA, Darmstadt,
Germany

Total energy consumption

 

2,158

 

2,178

 

2,374

 

2,454

 

628

Direct energy consumption

 

1,261

 

1,288

 

1,266

 

1,318

 

564

Natural gas

 

1,194

 

1,222

 

1,179

 

1,232

 

556

Liquid fossil fuels2

 

33

 

33

 

52

 

48

 

8

Biomass and self-generated renewable energy

 

34

 

33

 

35

 

38

 

0

Indirect energy consumption

 

897

 

890

 

1,108

 

1,136

 

64

Electricity

 

749

 

745

 

945

 

958

 

64

Steam, heat, cold

 

148

 

145

 

163

 

178

 

0

Total energy sold

 

0.0

 

0.1

 

0.2

 

0.1

 

0.0

Electricity

 

0.0

 

0.1

 

0.2

 

0.1

 

0.0

Steam, heat, cold

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

 

 

 

 

 

 

 

 

 

 

In TJ

 

 

 

 

 

 

 

 

 

 

Total energy consumption

 

7,770

 

7,839

 

8,546

 

8,834

 

2,261

Direct energy consumption

 

4,541

 

4,637

 

4,558

 

4,745

 

2,030

Natural gas

 

4,298

 

4,399

 

4,244

 

4,435

 

2,002

Liquid fossil fuels2

 

119

 

119

 

187

 

173

 

29

Biomass and self-generated renewable energy

 

124

 

119

 

126

 

137

 

0

Indirect energy consumption

 

3,229

 

3,202

 

3,989

 

4,090

 

230

Electricity

 

2,696

 

2,682

 

3,402

 

3,449

 

230

Steam, heat, cold

 

533

 

520

 

587

 

641

 

0

Total energy sold

 

0.0

 

0.5

 

0.7

 

0.4

 

0.0

Electricity

 

0.0

 

0.5

 

0.7

 

0.4

 

0.0

Steam, heat, cold

 

0.0

 

0.0

 

0.0

 

0.0

 

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

 

At 15 sites we use photovoltaics to produce power.
We currently only record purchased secondary energy – this is primarily electricity and, to a lesser extent, heat/steam/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.

In 2021, we increased our focus on purchasing electricity from renewable sources. In this period, we sourced 30% of our purchased electricity from renewable energies (2020: 27%). Renewables represented 13% of our total energy consumption.

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