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Summary of Global Reporting
Initiative Indicators

Listening, responding and working toward a healthier future

Overview Approach Overview

Merck reports according to the Global Reporting Initiative (GRI) G3 guidelines on our Corporate Responsibility (CR) website and in our printed CR report. The voluntary GRI G3 guidelines offer a useful framework for transparent reporting about environmental, social and governance performance. Greater transparency on such matters is beneficial to our business because it helps to inform our stakeholders and also enables us to compare performance with peers on relevant metrics. We believe that this will help us focus on continuously improving the things that matter most.

We are pleased to have achieved a reporting level B on the GRI G3 Guidelines, and our self-assessment has been checked by the GRI.

The table below summarizes where Merck disclosures can be found on the Merck website in relation to the GRI G3 indicators and standard disclosures.

 

GRI Indicators

(Italicized indicators are considered
non-core by the GRI and do not require reporting)
Addressed in CR web section or www.merck.com

ECONOMIC

DMA

Disclosure of management approach for economic performance

Our Economic Impact
Valuing Our Employees
Our Impact on Local Communities
Improving Access to Medicines,  Vaccines and Health Care

GRI EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

Our Economic Impact
Valuing Our Employees
Our Impact on Local Communities
Improving Access to Medicines, Vaccines and Health Care

GRI EC2

Financial implications and other risks and opportunities for the organization's activities due to climate change

We do not currently report on this core indicator in our CR report.

GRI EC3

Coverage of the organization's defined benefit plan obligations

pp.123-132 of our  Annual Financial Report (10K) in 2007 and pp.109-114 in 2006.

GRI EC4

Significant financial assistance received from government

We do not currently report on this non-core indicator.

GRI EC5

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation

We do not currently report on this non-core indicator.

GRI EC6

Policy, practices and proportion of spending on locally-based suppliers at significant locations of operation

Partially addressed:  Managing Our External Suppliers

GRI EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation

Partially addressed:  Promoting Diversity and Inclusion

GRI EC8

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind or probono engagement

Improving Access to Medicines,  Vaccines and Health Care
Fostering Science Education
Our Impact on Local Communities

GRI EC9

Understanding and describing significant indirect economic impacts, including the extent of impacts

Improving Access to Medicines, Vaccines and Health Care Fostering Science Education
Our Impact on Local Communities

PRODUCT

DMA

Disclosure of management approach for product performance

Ensuring Confidence in the Safety and Quality of Our Products
Product Stewardship

GRI PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

Ensuring Confidence in the Safety and Quality of Our Products
Product Stewardship

GRI PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services, by type of outcomes

We do not currently report on this non-core indicator.

GRI PR3

Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

Ensuring Confidence in the Safety and Quality of Our Products
Clinical Trial Registration and  Disclosure of Clinical Trials Results
Ethical Sales & Marketing Practices

GRI PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information, and labeling, by type of outcomes

We do not currently report on this non-core indicator.

GRI PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction

We do not currently report on this non-core indicator.

GRI PR 6

Programs for adherence to laws, standards and voluntary codes related to marketing communications, including advertising, promotion and sponsorship

Ethical Sales & Marketing Practices

GRI PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship, by type of outcomes

We do not currently report on this non-core indicator.

GRI PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

We do not currently report on this non-core indicator.

GRI PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

Ethical Sales & Marketing Practices

ENVIRONMENTAL

DMA

Disclosure of management approach for environmental performance

Managing Our Environmental Footprint

GRI EN1

Materials used by weight or volume

Partially addressed in: Emissions, Effluents & Waste

GRI EN2

Percentage of materials used that are recycled input materials

Partially addressed in: Emissions, Effluents & Waste

GRI EN3

Direct energy consumption by primary energy source

Energy Use and Climate Change

GRI EN4

Indirect energy consumption by primary energy source

Partially addressed in: Energy Use and Climate Change

GRI EN5

Energy saved due to conservation and efficiency improvements

Energy Use and Climate Change

GRI EN6

Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives

We do not report on this non-core indicator because it is not relevant to pharmaceutical products.

GRI EN7

Initiatives to reduce indirect consumption and reductions achieved

Energy Use and Climate Change

GRI EN8

Total water withdrawal by source

Water Use

GRI EN9

Water sources significantly affected by withdrawal of water

We do not currently report on this non-core indicator.

GRI EN10

Percentage and total volume of water recycled and reused

We do not currently report on this core indicator.

GRI EN11

Location and size of land owned, leased, managed in or adjacent to, protected areas and areas of high biodiversity value outside protected areas

We do not currently report on this core indicator.

GRI EN12

Description of significant activities, products and service on biodiversity in these areas.

We do not currently report on this core indicator.  Merck has discontinued bioprospecting.

GRI EN13

Habitats protected or restored

We do not currently report on this non-core indicator.  We discuss habitat projects in Our Impact on Local Communities

GRI EN14

Strategies, current actions and future plans for managing impacts on biodiversity

We do not currently report on this non-core indicator.

GRI EN15

Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk

We do not currently report on this non-core indicator.

GRI EN16

Total direct and indirect GHG emissions by weight

Energy Use and Climate Change

GRI EN17

Other relevant indirect GHG emissions by weight

We do not currently report on Scope 3 indirect GHG emissions.

GRI EN18

Initiatives to reduce GHG emissions and reductions achieved

Energy Use and Climate Change

GRI EN19

Emissions of ozone-depleting substances by weight

Emissions, Effluents & Waste

GRI EN20

NOx, SOx and other significant air emissions by type and weight

Emissions, Effluents & Waste

GRI EN21

Total water discharge by quality and destination

We do not currently report on this core indicator.

GRI EN22

Total weight of waste by type and disposal method

Emissions, Effluents & Waste

GRI EN23

Total number and volume of significant spills

Partially addressed: Safety and Environmental Compliance & Management

GRI EN24

Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III and VIII, and percentage of transported waste shipped internationally

We do not currently report on this non-core indicator.

GRI EN25

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff

We do not currently report on this non-core indicator.

GRI EN26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

Partially addressed in:
Product Stewardship

GRI EN27

Percentage of products sold and their packaging materials that are reclaimed by category

We do not currently report on this core indicator.  Our products are consumed when used.  Unsold product is reclaimed and destroyed,  Packaging is not currently being reclaimed.

GRI EN28

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulation

Safety and Environmental Compliance & Management

GRI EN29

Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce

We do not currently report on this non-core indicator.

GRI EN30

Total environmental protection expenditures and investments by type

We do not currently report on this non-core indicator.

LABOR

DMA

Disclosure of management approach for labor-related performance

Valuing Our Employees

GRI LA1

Total workforce by employment type, employment contract and region

Partially addressed in:
Building a Positive Working Environment

GRI LA2

Total number and rate of employee turnover by age group, gender and region

Partially addressed in:
Building a Positive Working Environment

GRI LA3

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations

Partially addressed in:
Building a Positive Working Environment

GRI LA4

Percentage of employees covered by collective bargaining agreements

Human Rights of Our Employees

GRI LA5

Minimum notice periods regarding significant operational changes, including whether it is specified in collective agreements

Building a Positive Working Environment

GRI LA6

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs

Partially addressed in:
Fostering the Health and Safety of Our Employees

GRI LA7

Rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities per region

Partially addressed in:
Fostering the Health and Safety of Our Employees

GRI LA8

Education, training, counseling, prevention and risk-control programs in place to assist workforce members, their families or community members regarding serious diseases

Fostering the Health of Our Employees

GRI LA9

Health and safety topics covered in formal agreements with trade unions

We do not currently report on this non-core indicator.

GRI LA10

Average hours of training per year per employee per category

Partially addressed:  Conducting Ourselves Ethically and Transparently
Managing Our Environmental Footprint
The Safety of our Employees
Researching New Medicines and Vaccines to Address Unmet Needs
Building a Positive Working Environment

GRI LA11

Programs for skills management and lifelong learning that support the continued employability of employees and assist them with managing career endings

Partially addressed in:
Building a Positive Working Environment

GRI LA12

Percentage of employees receiving regular performance and career development reviews

Building a Positive Working Environment

GRI LA13

Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other diversity indicators

Partially addressed: Promoting Diversity and Inclusion

GRI LA14

Ratio of basic salary of men to women by employee category

We do not currently report on this core indicator.

SOCIAL

DMA

Disclosure of management approach for social performance

Our Economic Impact
Valuing Our Employees
Our Impact on Local Communities
Improving Access to Medicines, Vaccines and Health Care
Managing Our Environmental Footprint
Conducting Ourselves Ethically and Transparently
Researching New Medicines and Vaccines to Address Unmet Needs
Advocacy and Outreach

GRI SO1

Nature, scope and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting

Our Impact on Local Communities
Managing Our Environmental Footprint
Neighbor of Choice

GRI SO2

Percentage and total number of business units analyzed for risks related to corruption   

Partially addressed: Conducting Ourselves Ethically and Transparently

GRI SO3

Percentage of employees trained in the organization's anti-corruption policies and procedures

Conducting Ourselves Ethically and Transparently

GRI SO4

Actions taken in response to incidents of corruption

Partially addressed: Conducting Ourselves Ethically and Transparently
Researching New Medicines and Vaccines to Address Unmet Needs

GRI SO5

Public policy positions and participation in public policy development and lobbying

Advocacy and Outreach, with specific positions detailed in all the major sections

GRI SO6

Total value of financial and in-kind contributions to political parties, politicians and related institutions, by country

Advocacy and Outreach

GRI SO7

Total number of legal actions for anti-competitive behavior, anti-trust and monopoly practices, and their outcomes

pp.24-40 of our Annual Financial Report (10-K) in 2007 and pp22-35 in 2006

GRI SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

Safety & Environmental Compliance and Management
Conducting Ourselves Ethically and Transparently

HUMAN RIGHTS

DMA

Disclosure of management approach to human rights performance

Promoting and Protecting Human Rights

GRI HR1

Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening

Partially addressed: Managing Our External Suppliers
Researching New Medicines and Vaccines to Address Unmet Needs

GRI HR2

Percentage of significant suppliers and contractors that have undergone screening on human rights, and actions taken

Partially addressed: Managing Our External Suppliers

GRI HR3

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

Partially addressed: Conducting Ourselves Ethically and Transparently

GRI HR4

Total number of incidents of discrimination and actions taken

We do not report on this core indicator.

GRI HR5

Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights

Promoting and Protecting Human Rights

GRI HR6

Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor

Promoting and Protecting Human Rights

GRI HR7

Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor

Promoting and Protecting Human Rights

GRI HR8

Percentage of security personnel trained in the organization's policies and procedures concerning aspects of human rights that are relevant to operations

We do not currently report on this non-core indicator.

GRI HR9

Total number of incidents or violations involving rights of indigenous people, and actions taken

We do not currently report on this non-core indicator.



Number

GRI  Standard Disclosures

Addressed in CR web section or www.merck.com

STRATEGY AND ANALYSIS

1.1

Executive management statement

Message from the Chairman

1.2

Description of key impacts, risks and opportunities

Our Economic Impact
Researching New Medicines and Vaccines to Address Unmet Needs
Improving Access to Medicines, Vaccines and Health Care
Ensuring Confidence in the Safety and Quality of Our Products
Conducting Ourselves Ethically and Transparently
Managing Our Environmental Footprint
Advocacy and Outreach

ORGANIZATION PROFILE

2.1

Name of organization

Merck & Co., Inc.

2.2

Primary brands, products, and/or services

About Merck
Our Economic Impact
2007 Annual Review, 2006 Annual Review

2.3

Operational structure of the organization

Corporate Governance

2.4

Location of organization's headquarters

Whitehouse Station, New Jersey, U.S.A.

2.5

Number of countries where the organization operates

Our Economic Impact

2.6

Nature of ownership and legal form

Public company listed on NYSE under the symbol MRK

2.7

Markets served

Our Economic Impact

2.8

Scale of reporting organization

Our Economic Impact

2.9

Significant changes during the reporting period regarding size, structure or ownership

Restructuring Program

2.10

Awards received in the reporting period

Awards, Recognition and Benchmarking

REPORT PARAMETERS

3.1

Reporting period

Frequently Asked Questions

3.2

Date of most recent previous report

Corporate Responsibility 2004-2005 Report, Committed to Making a Difference

3.3

Reporting cycle

Frequently Asked Questions

3.4

Contact points for questions regarding the report and its contents

Contact Corporate Responsibility

3.5

Process for defining report content

Materiality Assessment Process

3.6

Boundary of the report

Materiality Assessment Process

3.7

State any specific limitations on the scope or boundary of the report

Materiality Assessment Process

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities

pp. 84-102 of our Annual Financial Report (10-K) in 2007 and pp.74-91 in 2006

3.9

Data measurement techniques and the bases of calculations

Managing Our Environmental Footprint
The Safety of Our Employees

3.10

Explanation of the effects of any restatement of information provided in earlier reports

Managing Our Environmental Footprint
The Safety of Our Employees

3.11

Significant changes from previous reporting periods

CR Governance and Performance Management

3.12

Table identifying the location of standard disclosures in the report

This table

3.13

Policy and current practice with regard to seeking external assurance for the report

External Stakeholder Review of Reporting Approach

GOVERNANCE

4.1

Governance structure of the organization

Corporate Governance

4.2

Indicate whether the Chair of the highest governance body is also an executive officer

Corporate Governance

4.3

Members of the highest governance body that are independent and/or non-executive members

Corporate Governance

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body

Annual Shareholder meetings, Proxy voting,  Communicating and Engaging With Our Employees

4.5

Linkage between compensation and the organization's performance

Building a Positive Working Environment
Corporate Governance
pp. 20-33 of our 2007 Proxy Statement and pp. 20-26 of our 2006 Proxy Statement, with regards to executive compensation

4.6

Processes in place for the highest governance body to ensure conflicts of interest are resolved

Conducting Ourselves Ethically and Transparently

4.7

Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization's strategy on economic, environmental and social performance

Corporate Governance

4.8

Internally developed statement of mission or values, codes of conduct, and principles relevant to economic, environmental and social performance and the status of their implementation

Conducting Ourselves Ethically and Transparently
Corporate Governance
Safety and Environmental Compliance & Management

4.9

Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental and social performance

Corporate Governance
Our CR Approach
Conducting Ourselves Ethically and Transparently
Safety and Environmental Compliance & Management

4.10

Process for evaluating the highest governance body's own performance, particularly with respect to economic, environmental and social performance

Policies of the Board
Safety & Environmental Compliance and Management

4.11

Explanation of whether and how the precautionary approach or principles is addressed by the organization

Product Stewardship

4.12

Externally developed economic, environmental and social charters, principles or other initiatives to which the organization subscribes or which it endorses

Our Economic Impact
Researching New Medicines and Vaccines to Address Unmet Needs
Improving Access to Medicines, Vaccines and Health Care
Ensuring Confidence in the Safety and Quality of Our Products
Conducting Ourselves Ethically and Transparently
Managing Our Environmental Footprint
Advocacy and Outreach
Managing Our External Suppliers

4.13

Significant memberships in organizations

Advocacy and Outreach, also mentioned in all major sections

4.14

List of stakeholder groups engaged by the organization

Engaging With Our Stakeholders

4.15

Basis for identification and selection of stakeholders with whom organization engages

Engaging With Our Stakeholders

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

Engaging With Our Stakeholders
Our Impact on Local Communities

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

Engaging With Our Stakeholders
External Stakeholder Review of Reporting Approach



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