Merck KGaA, Darmstadt, Germany, presented its new sustainability strategy in conjunction with the announcement of the results of the third quarter of 2020.
The company is thus integrating sustainability more strongly as an essential component of its corporate strategy.
“At our company, scientific progress and responsible entrepreneurship have always gone hand in hand. We want to be economically successful and create value for society in all of our businesses without generating subsequent costs for society. As a global science and technology company, we can help address some of today’s greatest challenges, such as serious diseases and climate change,” said Stefan Oschmann, chairman of the Executive Board and CEO.
With the sustainability strategy, the company is pursuing three specific goals, which are reflected in a total of seven focus areas.
It is implementing numerous projects and initiatives in these focus areas today and will continue to do so in the future.
Goal 1: In 2030, the company will achieve human progress for more than 1 billion people through sustainable science and technology.
- Sustainable innovations and technologies for the company’s customers;
- Impact of the company’s technologies and products on health and well-being
Goal 2: By 2030, the company will integrate sustainability into all its value chains.
- Sustainability culture and values;
- Sustainable and transparent supply chain;
- Securing the company’s social license to operate in all regions
Goal 3: By 2040, Merck KGaA will achieve climate neutrality and reduce its resource consumption.
- Climate change and emissions;
- Water and resource intensity
By concentrating on these topics, Merck KGaA wants to contribute to the achievement of the United Nations Sustainable Development Goals.
At the same time, the company is integrating the topic of sustainability into its business strategies and taking the goals of the sustainability strategy into account when making business decisions.
Additionally, it is planning to link the variable pay of the Executive Board and senior management with progress made in achieving the company’s three sustainability goals.
Merck KGaA will report annually on the current implementation status of its sustainability strategy.
The company is currently defining the corresponding performance indicators and testing the internally-developed method for Impact Valuation, known as Sustainable Business Value. It published the concept of this method in the journal “Sustainability” in October 2020.