Our material impacts, risks and opportunities related to water and marine resources (E3 SBM-3)
As part of the double materiality analysis, we identified one impact related to water and marine resources. Our disclosures relate to the following material impact:
Water withdrawal |
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Identifier |
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E3-NI-1 |
Material impacts, risks and opportunities |
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Actual/potential negative impact |
Time horizon |
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Medium/long-term |
Value chain step |
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Own operations |
Description |
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The withdrawal of water reduces its availability in the natural environment and for other water users along the value chain. In our own operations, we require water for our manufacturing operations, especially in the Electronics business sector for Surface Solutions. |
Our policy related to water and marine resources (E3-1)
Sustainable Water Management – Water Use |
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Connection to material impacts, risks and/or opportunities |
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Identifier E3-NI-1 |
Material sustainability matter |
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Water withdrawal |
Key contents |
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Sustainable Water Management is our program on the responsible use of resource water. The corporate Water Use standard is our Group-wide policy and aims to minimize the negative environmental, health and safety impact of our facilities worldwide. It sets out our water efficiency target and defines global guidelines for the responsible use of water and reducing our water footprint. The Group’s Sustainability Board (MSB) is responsible for monitoring and controlling. In this respect the MSB Charter stipulates that the board regularly reviews the implementation status, the progress toward target achievement, and the corresponding key figures of business sectors, including their contribution to our general sustainability strategy goals. Monitoring the achievement of goals is first checked by the business sectors, followed by quarterly checks by the Greenhouse Gas steering group and the MSB. |
Scope of application |
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The policy applies Group-wide at all sites, including those in areas at water risk and high water stress. It applies for all water use activities within our own operations, including water withdrawal, water use and water discharge. |
Accountability |
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Managing director, site manager, or qualified employee. |
Third-party standards/initiatives |
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The policy considers the UN Global Compact and the UN Sustainable Development Goal 6: "Clean Water and Sanitation". |
Consideration of stakeholder interests |
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When setting the policy, we considered the interests of internal stakeholders. By requesting our sites to minimize water withdrawal, we consider the interests of external stakeholders. |
Availability |
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Our policy is available internally on the intranet. |
The policy related to water and marine resources is regularly monitored and updated. Our policy requires our sites to use water as efficiently as possible and to consider it as environmental aspect. All sites shall strive to optimize existing water-related processes and apply innovative solutions for water use in new or significantly modified processes. Water-saving measures are subject to a cost-benefit analysis. Also, sites always need to take into account the associated energy costs and CO2 emissions for water efficiency projects. All our sites shall trace their entire water flow transparently from the point of extraction, through the various steps of processing, use and treatment, to the point of discharge. Water withdrawal should be measured using water meters and documented in our recording program. The sites are required to ensure provision of clean drinking water, sanitary facilities and hygienic conditions to employees and guests on the site. Our policy does not address water treatment as a measure for sustainable water procurement. Water is generally not polluted by being withdrawn from the freshwater system or wells. We report on our policies for preventing water contamination through the use of chemicals under “Our policies in connection with water pollution (E2-1)”.
Our water management system includes sites located in areas at water risk and high water stress. These sites must comply with local legislation and meet internal requirements, such as the Group target on water efficiency. Since water risk and water stress pose risks both to the environment and to our business, these sites in particular are requested to use water in a responsible way. Furthermore, they have to monitor developments in their local contexts and adapt their water use accordingly.
We do not have policies or practices on sustainable oceans and seas. The design of products and services addressing water-related issues and the preservation of marine resources is also not regulated by the Group-wide Water Use policy. This is in the responsibility of the business sectors and the respective research and development (R&D) departments.
Our actions in connection with water and marine resources (E3-2)
We are currently implementing several actions in our Life Science and Healthcare business sectors to help achieve our water efficiency target.
Actions within Life Science on water efficiency and water reduction
In our Life Science business sector, we implemented water conservation projects In the reporting year which are intended to contribute to our water efficiency target and aim to reduce water withdrawal. The largest of these is the reduction of drinking water use for process applications in Altdorf, Switzerland, with the aim of reducing water withdrawal by 70,000 cubic meters per year, starting in the second quarter of 2025 onwards. At other sites, for example, we set up wastewater recovery for process systems, converted single-pass cooling through the use of vacuum pumps, and improved cooling towers. When developing any new projects, we determine the extent to which we can further improve water efficiency.
In 2024, we implemented actions in our own operations (including manufacturing sites, labs, and warehouses) at our following sites: Altdorf and Buchs (Switzerland); Cleveland, Ohio (USA); Carlsbad, California (USA); Norwood, Ohio (USA); and Visalia, California (USA); Mumbai (India); Molsheim (France) and Nantong (China). Carlsbad, Visalia and Nantong are located in areas at water risk and high water stress.
The projects aim to reduce water withdrawal at our existing sites as well as reclaim and reuse water; as such, they contribute to our Group-wide sustainability goal. When developing projects, we take financial viability into account and will continue to do so in the future.
Initiatives within Healthcare for sustainable water management
In 2024, we started to implement actions for sustainable water management at our Healthcare site in Aubonne, Switzerland. These consist of two main actions: the optimization of purified water, which was completed in 2024 and is estimated to result in total water withdrawal savings of 15,000 cubic meters per year from 2025; and the ongoing replacement of outdated plant components to be completed by 2026. Through this, we expect to save 30,000 cubic meters per year from 2026 onwards.
New technical guideline for Healthcare on water circularity (Water Circularity Guideline)
In 2024, we created a technical guideline for the Healthcare business sector that aims to provide a framework for sustainable water management and circular economy. By setting criteria for the reduction, reuse and recycling of water, the guideline aims to contribute to both our water efficiency target, while reducing potentially harmful residues in our wastewater to below the no-effect threshold (predicted no-effect concentration, PNEC, water reference level) by 2030. More information can be found under “Our targets related to water pollution (E2-3)”.
The guideline will apply from 2025 and is to be used as a technical guideline at 20 sites of our Healthcare business sector in Brazil, China, Germany, France, Indonesia, Italy, Japan, Mexico, Spain, Switzerland and Uruguay. The guideline therefore also applies to sites in areas at water risk and high water stress. Specific actions on areas at high water stress are included as part of the guideline. The guideline is primarily intended for our own manufacturing activities, such as production, R&D facilities and laboratories, as well as warehouses, distribution centers, and offices.
Study on water cycle management at the Healthcare site in Jakarta
We completed a study on wastewater treatment at the Healthcare site in Jakarta, Indonesia, at the end of 2024. The aim of the study was to enable the reuse of treated wastewater for the cooling tower system, replacing tap water as the current freshwater source. Through this, we plan to reduce water withdrawal and will reclaim and reuse water.
We therefore examined the expansion of the wastewater treatment plant on-site to identify opportunities for the removal of active pharmaceutical ingredients (API) in accordance with the approval requirements for the quantity and quality of the wastewater. Reusing treated wastewater is estimated to reduce freshwater usage by 11,000 cubic meters per year. We plan to implement the identified actions at the site by 2026. By doing so, we contribute to our Group-wide water efficiency target at a site that is located in an area with high water stress. We collaborate with the responsible authorities as part of the approval process.
As we remove the APIs from the water to level below the PNEC values, we expect to lower the environmental impact. This can promote the regeneration of aquatic ecosystems and water bodies.
In 2024, no significant operating expenditures (OpEx) or capital expenditures (CapEx) were allocated to the actions related to water and marine resources. For 2025, we also do not intend to allocate any significant OpEx or CapEx.
Our target related to water and marine resources (E3-3)
Water efficiency |
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Reference to material impacts, risks and/or opportunities |
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Identifier E3-NI-1 |
Material sustainability matter |
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Water withdrawal |
Target |
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Compared with the 2020 baseline, we aim to achieve a 50% reduction in our water efficiency ratio, calculated as total water withdrawal per net sales (to 396 m3 per € million net sales) by 2030. The target covers the complete water withdrawal of our company. The Water Use policy supports the achievement of this target by providing detailed requirements for water use. |
Reference value/year |
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Water withdrawal of 792 m3 per € million net sales in 2020. |
Methods |
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We developed the target based on a key figure that is recognized and widely used in various industries and in external reporting. The ratio to our net sales reflects the growth of the company. We chose 2020 as our base year to align this target with other existing environmental targets. The application of scientific principles was not necessary to set the target. No external stakeholders were involved in the creation of the target. |
Consideration of stakeholders |
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Our Sustainability Board and business sectors are involved in setting targets, with final approval granted by the Executive Board. |
Changes from the previous year |
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No changes were made. |
Performance/Key figures |
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In 2024, we achieved a water efficiency of 588 m3 per € million net sales. |
The scope of our voluntary target is at Group level and covers all our legal entities and sites. In our efforts to conserve water, we pay particular attention to sites in areas where water is scarce. To determine whether a site is located in a water stress area, we apply a water risk factor of the World Resources Institute (WRI) Aqueduct Water Risk Atlas.
Our metrics related to water withdrawal (E3 MDR-M)
The measurement of any water withdrawal related metric has not been validated separately by an external body.
Water withdrawal
Our operational sites (manufacturing and warehousing) and our larger dedicated R&D and office sites are required to record relevant water volumes (total water withdrawal) in our central Environment, Health and Safety (EHS) data management system. The on-site recording methods vary both in terms of the data source, such as measurement (via flow meters or volume counters), meter reading or billing, and the frequency (monthly, quarterly or annually).
Smaller R&D and office locations are not requested to document in the central EHS data management system due to their relatively low water withdrawal (mainly for sanitary use, estimated approx. 2% of the total water volume). Their water volume is estimated based on the number of employees.
Water withdrawal in areas at water risk, including areas at high water stress
As previously described, we determine whether a site is located in a water stress area via a water risk factor of the WRI Aqueduct Water Risk Atlas. We therefore compare the geodata of our sites with the information in the WRI Aqueduct Water Risk Atlas. We defined a site as being located in a water risk area if the respective total water risk factor in WRI Aqueduct is 3 or higher (“high: 3-4”; “extremely high: 4-5”). At the same time, we apply the definition of high water stress as given in the ESRS glossary annex. Although we operate sites in areas at water risk and high water stress, our respective water withdrawal is low and of no relevance for the respective local environment.
Water efficiency
We assess our water efficiency based on the total water withdrawal per net sales. We report water efficiency under ESRS 2 (SBM-1) as it is one of our strategic sustainability key indicators.
Water withdrawal metrics
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Milestone and target year |
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2024 |
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2030 |
Water withdrawal (m3) |
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12,430,923 |
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Water withdrawal in areas at water risk, including high water stress (m3) |
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1,056,170 |
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Water efficiency (m3 per € million net sales) |
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588 |
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396 |
Of the total water withdrawal, 797,418 m3 was attributable to Merck KGaA, Darmstadt, Germany.