Merck & Co

Pharmaceuticals

MRK

$ 93 1

Share price

$ 235 bn

Market Cap

$ 256 bn

Enterprise Value

Carbon footprint

GHG emissions per $ 1 mln investment

0.14x the weighted average for S&P 500

FY2020

Primary Climate Goal

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

Weaker than the -5.1% weighted average for S&P 500

FY2021

Merck & Co aims to reduce Scope 1 + 2 by 46% by 2030 from a base year 2019

1.5°C

Secondary Climate Goal

Proj. YOY change in GHG emissions (Scope 3)

Weaker than the -6.3% weighted average for S&P 500

FY2021

Merck & Co aims to reduce Scope 3 by 30% by 2030 from a base year 2020

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

GHG emissions and Carbon intensity

Merck & Co reported Total CO2e Emissions - Market-Based Scope 1 + Scope 2 for the twelve months ending 31 December 2020 at 994 Kt (-83 /-7.7% y-o-y). Also positively, carbon intensity declined to 21 t (-2.3 /-10% y-o-y).

Merck & Co's Scope 3 emissions increased to 7,103 Kt (+138/+2% y-o-y). The growth rate declined vs. the previous periods (CAGR +4.4% since 4Q'18).

The company is committed to reducing Scope 1 + 2 by 46% by 2030 from a base year 2019, which translates into the estimated reduction of -41 Kt per annum over the period of FY2021 - FY2030. This science-based target is aligned with Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.

Also, the company commits to reducing Scope 3 by 30% by 2030 from a base year 2020, which translates into the estimated reduction of -213 Kt per annum over the period of FY2021 - FY2030. This target, however, has not been recognised as science-based (and as aligned with Paris Agreement) by the SBTi.

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)
2020Q4	994	738	255	7,103	47,994	21
2019Q4	1,077	799	318	6,966	46,840	23
2018Q4	1,198	800	399	6,240	42,294	28
2017Q4	1,279	806	473	6,586	40,122	32
2016Q4	1,398	862	537	7,975	39,807	35
2015Q4	1,459			5,586	39,498	37
2014Q4	1,532			5,760