Merck & Co., Inc. (MRK) — ESG & Values Scores

Environment story

Merck's 10-K discusses climate change as a business risk (physical, transition, and regulatory) but does not disclose quantified Scope 1, Scope 2, or Scope 3 emissions figures, a renewable electricity percentage, or a specific net-zero target year within the provided filing excerpts. The Company references evolving mandatory/voluntary climate disclosure regimes (EU CSRD, California GHG laws, potential SEC climate rules) as compliance risk areas rather than as achieved milestones. No specific environmental fines, toxic-waste incidents, or localized water-consumption controversies with verifiable sources appear in the reviewed documents.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Capital investment program (2025-2029)

Merck plans to invest approximately $20 billion in capital projects from 2025-2029, with more than $12 billion directed to U.S. facilities, including manufacturing reshoring under a Section 232 tariff delay agreement with the U.S. Department of Commerce.

Facility-level environmental impact not quantified in source documents.
Sustainability governance structure

Company organizes sustainability work into four focus areas: Access to Health, Employees, Environmental Sustainability, and Ethics & Values, overseen at the Board/Governance Committee level per the 2026 proxy statement.

Structural oversight described; quantitative environmental outcomes not disclosed in reviewed excerpts.

Social story

The reviewed 10-K and proxy excerpts do not disclose a specific CEO-to-median-worker pay ratio figure, leadership diversity percentages, or documented union-suppression activity or strikes within the last 24 months. The Company discloses ongoing product liability litigation related to Gardasil and other marketed products, which represents a documented legal/social risk area referenced in the 10-K's Contingencies note.

Criticisms on file

Product liability litigation, including Gardasil-related claims and other marketed-product safety/liability matters, referenced in Item 8, Note 10 'Contingencies and Environmental Liabilities.'
Source: MRK_10k.txt, Risk Factors and MD&A sections referencing Gardasil litigation and product liability claims

Disclosed initiatives

Global pay equity study

Company reports conducting a global pay equity study encompassing approximately 70,000 employees, as referenced in its Impact Report and proxy statement responses to shareholder proposals.

Stated goal of ensuring fair pay across the workforce; independent verification of outcomes not provided in source documents.
Human Rights Campaign Corporate Equality Index score

Referenced in proxy shareholder-proposal discussion as having received a 'perfect score' on HRC's Corporate Equality Index.

Indicates formal LGBTQ+ workplace inclusion policies; scope and criteria not detailed in provided excerpts.

Governance story

Merck maintains a single-class common stock structure with no dual-class voting rights disclosed. The Board separates the CEO/Chairman role from an independent Lead Director, and all four standing Board committees are composed entirely of independent directors; 12 of 13 director nominees are identified as independent (all except the Chairman/CEO). The Company discloses several active or recently resolved legal/regulatory matters, including a 2023 Zetia antitrust litigation settlement charge ($573 million), ongoing IRS examinations with proposed adjustments of approximately $1.3 billion plus $260 million in penalties related to the 2017-2018 transition tax, and litigation the Company itself initiated against the U.S. government challenging the Inflation Reduction Act's drug price-setting program.

Criticisms on file

2023 Zetia antitrust litigation settlements resulting in a $573 million charge
Source: MRK_10k.txt, Non-GAAP Income reconciliation table, 'Charge for Zetia antitrust litigation settlements'
IRS Notices of Proposed Adjustment (April 2025) proposing ~$1.3 billion increase to one-time transition tax plus ~$260 million in penalties for tax years 2017-2018; Company contesting the adjustments
Source: MRK_10k.txt, Taxes on Income section
Company filed litigation against the U.S. government challenging the IRA's Drug Price Negotiation Program
Source: MRK_10k.txt, MD&A Pricing section: 'The Company has sued the U.S. government regarding the IRA's Program'

Disclosed initiatives

Political contributions and lobbying oversight

Board's Governance Committee periodically reviews political contribution and lobbying policies; semi-annual reports on political contributions are provided to the Board.

Formal oversight structure disclosed; specific annual lobbying dollar figures not provided in reviewed excerpts.
Most-Favored-Nation (MFN) Agreement with U.S. government

In December 2025, Merck entered a three-year agreement to provide select products via a direct-to-patient discount program, offer discounted Medicaid pricing, and apply MFN pricing to new launches; also agreed to repatriate and share a portion of foreign revenue gains from trade policy outcomes.

Alters U.S. pricing/access practices; financial and access implications not fully quantified in provided excerpts.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Merck & Co., Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Merck & Co., Inc. in the app for interactive charts and portfolio building.

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