In the past, the lack of a centralized EHS information system limited Merck's ability to efficiently collect data from across the Company. We know that what gets measured gets managed and, in 2008, the S&E organization launched the first modules of a new global information management system that is consolidating and replacing a number of previously separate data gathering processes. The new system now allows us to collect, manage and share our S&E performance data more efficiently and use the data to reinforce our focus on driving performance improvement. In 2008, we used this system to collect a number of leading metrics that drove continuous improvements in our safety inspections, action item closure and training completion to this new system. In 2009 we migrated our process for collection of injury and illness data and adverse incidents such as permit exceedances and reportable spills. We will continue to seek ways to expand use of this system to provide new functionality as well as an integrated process to collect, maintain, analyze and report EHS data.

Regulatory Inspections

In 2008, Merck received 176 inspections by EHS regulatory agencies around the world. This represents a 33 percent increase in environmental inspections and an 83 percent increase in safety inspections in 2008 over 2007. While the data set is limited, it is possible higher inspection frequencies may continue in future years.

Environmental Events

Twenty-three spills were reported by Merck sites worldwide in 2008 versus 26 in 2007. Fifty percent of these spills are related to a modified regulatory interpretation by the Pennsylvania Department of Environmental Protection (DEP) that resulted in reporting of a number of events that were not previously required to be reported, such as spills of chilled water. Overall, approximately 70 percent of the spills reported in 2008 were either spills of cooling water, or spills that were contained and cleaned up or directed to wastewater treatment.

Merck experienced seven water permit exceedances in 2008, one more than in 2007. Approximately 42 percent of the water events were related to pH, and metals and organic exceedences each accounted for 29 percent of the events. Merck also experienced 23 air permit exceedances, a decrease of five from 2007. 56 percent of the air events were related to exceedences of an emission limit during stack testing or routine monitoring and 26 percent were related to temperature deviations.

Citations, Notices of Violation, Fines & Settlements

Merck received seven safety notices of violation (NOVs) in 2008, an increase from the three that were reported in 2007 and similar to the eight reported for 2006. Over the past three years approximately 40 percent of the safety NOVs received were from governmental safety inspections and 40 percent were fire department inspections. There were no safety-related fines paid in 2008.

Merck received nine NOVs for environmental matters in 2008, four less than in 2007. During the past three years, 63 percent of these NOVs have been associated with air emissions, 25 percent with water and 12 percent with waste. Merck paid $1,579,600 in fines associated with environmental violations in 2008, which reflects a significant environmental settlement paid in early 2008 associated with three spills at one site in 2006 that resulted in three NOVs. [For more information, click here..]

Global Environmental and Safety Compliance Performance Data Summary 2005-2008

Performance Indicators	2008	2007	2006	2005
Regulatory Inspections
Environmental Inspections	101	76	88	N/D
Safety Inspections	75	41	65	N/D
Environmental Events
Reportable Spills and Releases	23	261	4	4
Water Permit Exceedances	7	6	5	3
Air Permit Exceedances	23	28	19	25
Notices of Violations (NOVs) / Citations
Environmental	9	13	11	N/D
Safety	7	3	8	N/D
Fines (US$)
Environmental Fines Paid (number of fines)	$1,579,6002 (7)	$31,515 (6)	$10,652 (3)	$281,025 (4)
Safety Fines Paid (number of fines)	0	$1,500 (1)	$1,975 (2)	$1,000 (2)

For additional information on safety performance, click here.

The content on this page was last modified on September 15, 2009.

Merck & Co., Inc., Whitehouse Station, NJ, USA, and Schering-Plough Corporation, Kenilworth, NJ, USA, are now one company. We have combined our global operations under the name Merck & Co., Inc. We are working to update our corporate responsibility Web site to reflect our new, combined, global organization.

---

N/D - No data available.

¹The increase in number of reportable spills is due primarily to a modified Pennsylvania Department of Environmental Protection interpretation in late 2006 that resulted in reporting of spills, such as chilled water spills into storm water drains, that were not previously required to be reported.

²Reflects a significant environmental settlement ($1,575,000) paid in early 2008 associated with three spills that occurred in 2006.