Merck & Co

Pharmaceuticals

MRK

$ 103 (1.3)%

Share price

$ 261 bn

Market Cap

$ 295 bn

Enterprise Value

Carbon footprint

GHG emissions per $ 1 mln investment

0.09x the weighted average for S&P 500

FY2021

Primary Climate Goal

Proj. YOY change in GHG emissions (Scope 1 + 2)

Stronger than the -8% weighted average for S&P 500

FY2022

Merck & Co aims to achieve carbon neutrality for Scope 1 + 2 by 2025

This target has not been verified as science based according to SBTi

Secondary Climate Goal

Proj. YOY change in GHG emissions (Scope 3)

Weaker than the -6.2% weighted average for S&P 500

FY2022

Merck & Co aims to reduce Scope 3 by 30% by 2030 from a base year 2019

1.5°C

GHG emissions and Carbon intensity

Merck & Co reported Total CO2e Emissions - Market-Based Scope 1 + Scope 2 for the twelve months ending 31 December 2021 at 926 Kt (-17 /-1.8% y-o-y). Also positively, carbon intensity was down at 19 t (-3.7 /-16.3% y-o-y).

Merck & Co's Scope 3 emissions was up at 6,959 Kt (+501/+7.8% y-o-y). This is a higher growth rate than over the period since 4Q'15 (+3.2% CAGR).

The company is committed to achieving carbon neutrality for Scope 1 + 2 by 2025, which translates into the estimated reduction of -231 Kt per annum over the period of FY2022 - FY2025. This target, however, has not been recognised as science-based (and as aligned with Paris Agreement) by the SBTi.

Also, the company commits to reducing Scope 3 by 30% by 2030 from a base year 2019, which translates into the estimated reduction of -277 Kt per annum over the period of FY2022 - FY2030. This science-based target is aligned with Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.

Merck & Co aims to achive carbon neutrality across its operations (Scope 1 + 2) in 2025. Companies normally become carbon neutral with the help of the acquisition of carbon offsets rather than absolute reductions in their own greenhouse emissions. Also, carbon neutrality does not include non-CO2 GHG emissions.

Date	Total CO2e emissions (market-based Scope 1 & 2) (Kt)	Scope 1	Scope 2	Scope 3	Revenue (USDm)	Carbon intensity (tons of CO2e) / (USDm)
2021Q4	926	696	230	6,959	48,704	19
2020Q4	943	738	228	6,458	41,518	23
2019Q4	1,019	799	286	6,381	46,840	22
2018Q4	1,132	769	363	6,240	42,294	27
2017Q4	1,216	777	438	5,941	40,122	30
2016Q4	1,398	862	537	7,975	39,807	35
2015Q4	1,459			5,586	39,498	37
2014Q4	1,532			5,760