Own Workforce (S1)

Our company vision – “Sparking Discovery, Elevating Humanity” – inspires our employees to help create a brighter, healthier and more sustainable world. They tackle complex challenges and cultivate a culture of innovation and inclusion. We encourage our workforce to pursue careers that resonate with their individual aspirations, skills and passions. This will not only boost employee satisfaction but also unlock our collective potential across the Group.

Definition of our own workforce

Our own workforce consists of employees and non-employees. Employees include all persons who are employed on a full-time or part-time basis, have a permanent or fixed-term formal employment relationship contract with one of our subsidiaries and are paid via the payroll of the respective business sectors or Group functions. We are actively working to gain insights into how individuals with specific characteristics may experience varying levels of risk.

Non-employees are those persons who do not have a formal employment relationship with any of our Group’s subsidiaries. This includes anyone engaged for training or educational purposes, such as apprentices, interns and working students. Contingent workers are also considered non-employees and are not paid via the payroll. They typically work on an interim basis for a specified period of time, for example, to complete specific projects, temporarily fill an open position, address short-term increases in workload, or perform a seasonal job. Our relationship with contingent workers depends on the scope of their assignment or project. Contingent workers include temporary workers provided to us by a third-party vendor as well as independent contractors, who are self-employed or sole proprietors providing specialized skills, training or services.

Workers in our upstream and downstream value chain who are or can be potentially impacted by activities connected to our own operations and value chain, including through our products or services, as well as through our business relationships, do not count as non-employees. Our reporting regarding workers in our value chain can be found under S2.

Our material impacts, risks and opportunities related to our own workforce (S1 SBM-3)

ESRS S1 SBM-3 – Gender equality and equal pay for work of equal value

Gender equality and equal pay for work of equal value

Identifier

 

S1-NI-01

Material impacts, risks and opportunities

 

Potential negative impact

Time horizon

 

Short-term

Value chain step

 

Own operations

Description

 

Equal pay:
If companies that operate globally and employ a large workforce, such as our company, fail to achieve equal pay among their employees, this could lead to negative impacts on the financial situation of employees and create dissatisfaction and reduced morale in the workplace.

ESRS S1 SBM-3 – Work-life balance

Work-life balance

Identifier

 

S1-NI-02

Material impacts, risks and opportunities

 

Potential negative impact

Time horizon

 

Short-term

Value chain step

 

Own operations

Description

 

Work-life imbalance:
Employees working in companies with complex operations and business models may face a higher risk of a potential work-life imbalance. Poor work-life balance can lead to increased stress and burnout among employees, negatively affecting their mental and physical health.

ESRS S1 SBM-3 – Secure employment; working time; adequate wages; collective bargaining, including rate of workers covered by collective agreements

Secure employment; working time; adequate wages; collective bargaining, including rate of workers covered by collective agreements

Identifier

 

S1-NI-03

Material impacts, risks and opportunities

 

Potential negative impact

Time horizon

 

Short-term

Value chain step

 

Own operations

Description

 

Inadequate working conditions:
As a global company, we also operate in countries and markets where adequate working conditions may not be mandated by law. Potential disrespect of adequate working conditions like the right to collective bargaining can lead to a lack of dialogue and unfair agreements between management and employees, which reduces employee motivation, collaboration and trust between both parties. This ultimately may negatively impact a culture of respect and partnership in our workforce.

ESRS S1 SBM-3 – Health and safety, collective bargaining, working time, diversity

Health and safety, collective bargaining, working time, diversity

Identifier

 

S1-R-01

Material impacts, risks and opportunities

 

Risk

Time horizon

 

Not applicable

Value chain step

 

Own operations

Description

 

Compliance with workplace-related laws:
Companies that operate globally must comply with local government and legal requirements related to working conditions and employee matters. This includes regulations on working hours, safety standards and programs that promote belonging and inclusion. If these requirements are not properly met, it can result in penalties that may harm the business locally.

ESRS S1 SBM-3 – Diversity

Diversity

Identifier

 

S1-PI-01

Material impacts, risks and opportunities

 

Actual positive impact

Time horizon

 

Not applicable

Value chain step

 

Own operations

Description

 

Inclusive workplace culture:
We promote an inclusive workplace that supports professional development, fosters a culture of acceptance for employees of all backgrounds, and leads to increased innovation and employee engagement.

ESRS S1 SBM-3 – Training and skills development

Training and skills development

Identifier

 

S1-PI-02

Material impacts, risks and opportunities

 

Actual positive impact

Time horizon

 

Not applicable

Value chain step

 

Own operations

Description

 

Professional development:
We provide employees with access to personalized development and various learning opportunities. They enhance their skills and advance their careers, which creates benefits for both individuals and the organization.

ESRS S1 SBM-3 – Health and safety

Health and safety

Identifier

 

S1-PI-03

Material impacts, risks and opportunities

 

Actual positive impact

Time horizon

 

Not applicable

Value chain step

 

Own operations

Description

 

Employee health and well-being:
We address employee health and well-being beyond occupational health and safety management systems. This can enhance employees’ mental and physical health, contributing to a positive work culture that boosts employee engagement and productivity.

ESRS S1 SBM-3 – Work-life balance

Work-life balance

Identifier

 

S1-PI-04

Material impacts, risks and opportunities

 

Actual positive impact

Time horizon

 

Not applicable

Value chain step

 

Own operations

Description

 

Work-life balance beyond legal obligations:
We offer work-life balance measures beyond statutory obligations, contributing to employees’ ability to reconcile work and family life.

Our strategy for empowering our own workforce

Our business model is designed to empower our employees through fair working conditions, including health and safety, alongside our dedication to belonging and inclusion. Our success derives from our employees. We support them in their development and promote an inclusive company culture. By fostering an environment in which every employee feels valued, engaged and empowered to contribute to our collective success is the core of our High-Impact Culture. This commitment enables us to continuously re-examine our ways of working and challenge long-held assumptions to advance human progress. More information regarding our High-Impact Culture can be found under “Corporate culture (G1)”.

Our Group Human Resources (HR) unit supports all business sectors and Group functions as regards our human capital. We want to ensure that our workforce strategies engage our people in alignment with Group-wide HR guidelines. This commitment includes offering attractive remuneration and benefits that reflect our dedication to nurturing talent and fostering an inclusive workplace.

The insights we gather from understanding workforce impacts are essential to our strategic planning and business model evolution. Our Chief People Officer leads the HR function, overseeing initiatives that create an environment where every employee feels valued and appreciated. This inclusive approach enhances overall performance and leads to positive outcomes for our customers, patients and partners.

To reinforce our commitment to Belonging & Inclusion, we have established a centralized Belonging & Inclusion Council. Comprising business leaders from the business sectors and Group functions, this council works collaboratively to build belonging and provide guidance for our collective effort in fostering an inclusive workforce. It champions Belonging & Inclusion to ensure that inclusive practices are woven into our enterprise-wide strategy, aligning workforce dynamics with our business objectives.

Understanding and addressing workforce impacts is crucial for cultivating an inclusive culture that enhances employee engagement and drives our strategic direction. We continually adapt our business model to reflect the needs and aspirations of our workforce, thereby positioning ourselves for sustained growth and success.

We aim to manage the identified material impacts and risks related to our own workforce with the following policies:

ESRS S1-1 – Social and Labor Standards Policy

Social and Labor Standards Policy

Connection to material impacts, risks and/or opportunities

 

Identifier S1-NI-01; S1-NI-02; S1-NI-03; S1-NI-04; S1-PI-01; S1-PI-02; S1-PI-03; S1-R-01

Material sustainability matter

 

Working conditions: secure employment; working time; adequate wages; collective bargaining; work-life balance; health and safety
Equal treatment and opportunities for all: gender equality and equal pay for work of equal value; diversity; training and skills development

Key contents

 

The policy defines our commitment to human rights and upholding international social and labor standards throughout our operations. It specifies our endeavors to foster a respectful and safe working environment while promoting accountability and compliance with labor standards in the following areas:
Forced labor, modern slavery and human trafficking: We prohibit all forms of forced or compulsory labor and emphasize ethical recruitment practices.
Child labor: We do not use child labor and we support protective actions for young workers.
Freedom of association and collective bargaining: We recognize employees’ right to organize and bargain collectively.
Fairness and respect: We promote an inclusive company culture and prohibit discrimination in the workplace.
Occupational health and safety: We are committed to protecting employees from work-related illnesses and accidents.
Working time and remuneration: We ensure appropriate remuneration and compliance with local laws regarding working hours.
Parental leave: We offer support for employees during and after childbirth.
The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees at our own operations.

Accountability

 

Managing Directors of our legal entities.

Third-party standards/initiatives

 

The policy is based on the International Bill of Human Rights, the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, the ILO Convention on Safety and Health at Work and the ILO Declaration on Multinational Enterprises. We are also committed to ethical recruitment, and the Employer Pays Principle.

Consideration of stakeholder interests

 

When setting the policy, we involved internal stakeholders such as our internal HR country heads and employees from our legal department.

Availability

 

The policy is available internally on the intranet and publicly on our website.

ESRS S1-1 – Human Rights Charter

Human Rights Charter

Connection to material impacts, risks and/or opportunities

 

Identifier S1-NI-01; S1-NI-02; S1-NI-03; S1-NI-04; S1-PI-01; S1-PI-02; S1-PI-03; S1-R-01

Material sustainability matter

 

Working conditions; health and safety;
Equal treatment and opportunities for all; gender equality and equal pay for work of equal value; diversity; training and skills development

Key contents

 

The policy outlines our commitment to respecting human rights and supporting its realization across our operations, supply chain, and business relationships. It addresses specific human rights issue areas such as social and labor standards, access to health, product stewardship, research ethics, privacy, supply chain and business relationships, investment decisions, communities, security, and bribery and corruption. Additionally, the policy describes our overarching human rights due diligence process including the handling of concerns and grievances. The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees at our own operations. Furthermore, we expect our business partners and other parties linked to our operations, products and services to respect human rights and practice human rights due diligence as articulated in our policy.

Accountability

 

Executive Board.

Third-party standards/initiatives

 

The policy is based on the International Bill of Human Rights; the UN Guiding Principles on Business and Human Rights (UNGP); the principles of the UN Global Compact; the ILO Declaration on Fundamental Principles and Rights at Work and its follow-up, and the ILO Declaration on Multinational Enterprises.

Consideration of stakeholder interests

 

When setting the policy, we considered the interests of external stakeholders such as trade unions, industry associations, and representatives of potentially impacted groups. We also drew on the knowledge of internal topic experts in these matters.

Availability

 

The policy is available internally on the intranet and publicly on our website.

ESRS S1-1 – Workforce Code of Conduct

Code of Conduct

Connection to material impacts, risks and/or opportunities

 

Identifier S1-NI-03; S1-NI-04; S1-PI-01; S1-PI-02; S1-PI-03; S1-R-01

Material sustainability matter

 

Working conditions: health and safety;
Equal treatment and opportunities for all: gender equality and equal pay for work of equal value; diversity; training and skills development

Key contents

 

The policy guides our workforce in conducting business ethically, in line with our company values and the law. It outlines our commitment to respect human rights, our principles in the workplace and for dealing with external business partners, customers, consumers and end-users. The policy also addresses our principles of responsible business conduct, for example, product safety, patient safety and the ethical conduct of clinical studies. Furthermore, the policy describes various reporting methods for employees if they suspect that internal or external rules are being breached. The update incorporated content and structural changes and improved user-friendliness to enhance readability and access to related governance documents and tools. Along with our values, it now addresses other important topics such as digital and data ethics, money laundering prevention and our High-Impact Culture. The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees at our own operations. It also applies to downstream business activities and relations with external stakeholders, such as consumers and end-users.

Accountability

 

Executive Board.

Third-party standards/initiatives

 

The policy follows the principles of the UN Global Compact.

Consideration of stakeholder interests

 

The policy was developed and reviewed with the involvement of internal stakeholders and experts.

Availability

 

The policy is available internally on the intranet and publicly on our website.

ESRS S1-1 – Group Policy Statement on Compliance with Human Rights and Environmental Due Diligence Obligations

Group Policy Statement on Compliance with Human Rights and Environmental Due Diligence Obligations

Connection to material impacts, risks and/or opportunities

 

Identifier S1-NI-01; S1-NI-02; S1-NI-03; S1-NI-04; S1-PI-01; S1-PI-02; S1-R-01

Material sustainability matters

 

Working conditions: secure employment; working time; adequate wages; collective bargaining; health and safety

Key contents

 

The policy emphasizes our commitment to human rights and environmental standards, detailing the processes and actions in place, such as risk management, preventive measures and remedial action, to uphold these principles across our operations and supply chain. The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees at our own operations and to the upstream and downstream value chain.

Accountability

 

Human Rights Officer.

Third-party standards/initiatives

 

The policy is based on the ILO core labor standards; the UN Global Compact; the International Covenant on Civil and Political Rights; the International Covenant on Economic; Social and Cultural Rights; the UN Guiding Principles on Business and Human Rights; and the OECD Guidelines for Multinational Enterprises.

Consideration of stakeholder interests

 

When setting the policy, we considered expertise from an external legal consultancy as well as our internal topic experts.

Availability

 

The policy is available internally on the intranet and publicly on our website.

ESRS S1-1 – Flexible Working Guideline

Flexible Working Guideline

Connection to material impacts, risks and/or opportunities

 

Identifier S1-NI-01; S1-NI-02

Material sustainability matter

 

Working conditions: working time; work-life balance

Key contents

 

This policy is designed to take account of today’s dynamic working world and create a high degree of working flexibility in our organization. The aim is to promote agility in collaboration by balancing remote and office-based working. The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees at our operations.

Accountability

 

HR People Recognition, Rewards & Relations unit.

Third-party standards/initiatives

 

None

Consideration of stakeholder interests

 

When setting the policy, we considered the interests of our employees by incorporating employee feedback gathered from our annual engagement survey and insights from local benchmarking within the employee market.

Availability

 

The policy is available internally on the intranet.

ESRS S1-1 – Workforce EHS Policy

EHS-Policy

Connection to material impacts, risks and/or opportunities

 

Identifier S1-PI-01; S1-R-01

Material sustainability matter

 

Working conditions: health and safety

Key contents

 

The policy clarifies our responsibility for Environment, Health and Safety (EHS) and commits to operating in a manner that reduces or eliminates risks to the environment, human health and safety while enabling sustainable business performance. Core elements include leadership accountability for a strong safety culture, robust compliance processes, integration of EHS into strategic business decisions, targeted EHS training and engagement, and product stewardship across the life cycle. The policy drives continual improvement via goals, programs and indicators to monitor and reduce injuries/accidents, energy and resource consumption, and waste, alongside emergency preparedness for environmental and safety protection and business continuity. The policy is continually monitored and part of our EHS management system.

Scope of application

 

The policy applies Group-wide to our own operations and to the upstream and downstream value chain.

Accountability

 

Chair of the Executive Board and CEO.

Third-party standards/initiatives

 

The policy is based on the principles of the UN Global Compact and the Responsible Care® Global Charter. It considers requirements of our global integrated management system, notably ISO 14001 Environmental Management System, ISO 45001 Occupational Health and Safety Management System, and ISO 50001 Energy Management System.

Consideration of stakeholder interests

 

When setting the policy, we considered the interests of our employees and customers.

Availability

 

The policy is available internally on the intranet and publicly on our website.

ESRS S1-1 – Group Employee Health Standard

Group Employee Health Standard

Connection to material impacts, risks and/or opportunities

 

Identifier S1-PI-01; S1-R-01

Material sustainability matter

 

Working conditions: health and safety

Key contents

 

The policy defines a systematic Group-wide recognition for the health of our employees. Protecting, maintaining and promoting the individual health and well-being of our employees is an integral part of the way we work. The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees at our own operations.

Accountability

 

Chief Sustainability Officer.

Third-party standards/initiatives

 

None

Consideration of stakeholder interests

 

When setting the policy, we considered the interests of our employees through, among other things, discussions with the Works Council as well as through our diverse, international and cross-functional teams.

Availability

 

The policy is available internally on the intranet.

ESRS S1-1 – Contractor EHS Management Standard

Contractor EHS Management Standard

Connection to material impacts, risks and/or opportunities

 

Identifier S1-PI-01

Material sustainability matter

 

Working conditions: health and safety

Key contents

 

The policy defines binding requirements for local management systems and their processes in order to manage contractors so that they work on our premises safely. This comprises five steps: (1) contractor selection, (2) work planning, (3) work execution, (4) monitoring, and (5) evaluation. The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees and contractors at our own operations.

Accountability

 

Managing Director or Site Manager.

Third-party standards/initiatives

 

None

Consideration of stakeholder interests

 

The policy was developed and reviewed with the involvement of internal stakeholders and experts.

Availability

 

The policy is available internally on the intranet.

ESRS S1-1 – Safety Culture Excellence Standard

Safety Culture Excellence Standard

Connection to material impacts, risks and/or opportunities

 

Identifier S1-PI-01

Material sustainability matter

 

Working conditions: health and safety

Key contents

 

The policy describes our efforts to create a culture of safety excellence by ensuring methods are in place to continuously improve and maintain the safety culture, including evaluating gaps, setting local targets, developing plans, and implementing actions. The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees at our own operations.

Accountability

 

Chair of the Executive Board and CEO.

Third-party standards/initiatives

 

None

Consideration of stakeholder interests

 

When setting the policy, we considered the interests of our employees.

Availability

 

The policy is available internally on the intranet.

ESRS S1-1 – Belonging & Inclusion Policy

Belonging & Inclusion Policy

Connection to material impacts, risks and/or opportunities

 

Identifier S1-NI-03; S1-NI-04; S1-PI-02

Material sustainability matter

 

Equal treatment and opportunities for all: gender equality and equal pay for work of equal value; diversity

Key contents

 

The policy creates a company-wide framework for Belonging & Inclusion activities at our organization. The aim is to foster an inclusive culture in which all employees can thrive, regardless of their backgrounds. The policy defines management responsibilities in promoting Belonging & Inclusion initiatives and includes commitments to equal opportunities for all and non-discrimination and to fostering an inclusive culture for all employees. The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees at our own operations.

Accountability

 

Chief Belonging and Inclusion Officer.

Third-party standards/initiatives

 

The policy is based on the fundamental conventions of the International Labour Organization (ILO).

Consideration of stakeholder interests

 

When setting the policy, we considered expertise from the Belonging & Inclusion Council, the legal team, our internal topic experts and external best practices.

Availability

 

The policy is available internally on the intranet and publicly on our website.

ESRS S1-1 – Group Standard – People Development and Learning

Group Standard – People Development and Learning

Connection to material impacts, risks and/or opportunities

 

Identifier S1-PI-03

Material sustainability matter

 

Equal treatment and opportunities for all: training and skills development

Key contents

 

The policy sets the framework within which our employees can develop. It takes a holistic view of the development opportunities within our company, particularly in the following areas: development and career planning, feedback tools, development and learning solutions. The policy is regularly monitored and updated.

Scope of application

 

The policy applies Group-wide to all employees at our own operations.

Accountability

 

Chief People Officer.

Third-party standards/initiatives

 

None

Consideration of stakeholder interests

 

The policy was developed and reviewed with the involvement of internal stakeholders and experts.

Availability

 

The policy is available internally on the intranet.

Our human rights commitment

Our Human Rights Charter, the Social and Labor Standards Policy and our Human Rights Policy Statement follow the principles of the UN Guiding Principles on Business and Human Rights as well as the International Labour Organization Declaration on Fundamental Principles and Rights at Work. In the Human Rights Policy statement, we additionally declare our commitment to the OECD Guidelines for Multinational Enterprises. Furthermore, all three documents explicitly address trafficking in human beings, forced labor and child labor.

Our Human Rights Charter is our overarching company directive that articulates our overall commitment to upholding human rights, including labor rights. It interlinks and complements our existing rules and regulations pertaining to human rights. We expect our employees as well as our suppliers and all companies with which we have business ties to comply with the Charter.

As a signatory to the UN Global Compact since 2005, we endeavor to prevent the risk of human rights violations as far as possible across our own sites and our supply chain. That is why we integrate human rights due diligence into our business processes. Our approach to human rights due diligence encompasses six main components:

  • Policy commitment: Human Rights Charter and Human Rights Policy Statement

  • Identifying human rights risks and violations

  • Addressing our impacts via defined responsibilities and management processes

  • Training and capability building on human rights throughout the entire organization and beyond

  • Reporting on human rights due diligence activities

  • Ensuring effective complaint systems are in place

We view our human rights due diligence approach as an ongoing process that requires continuous adaptation and improvement. We are constantly expanding our internal communications and engagement to better embed our commitment to human rights across the Group. For example, the implementation of the Social and Labor Standards Policy includes open dialogue and cooperation between employees and management. Furthermore, our cross-sectoral Human Rights Panel exchanges information on activities and the latest developments in the areas of business and human rights. As an active member of the Business & Human Rights Peer Learning Group within the UN Global Compact Network Germany, we engage with other companies to discuss challenges, current issues, experiences, and successful approaches in exercising human rights due diligence.

We have a Group-wide complaints system in place for reporting human rights and environmental concerns (more information can be found under S1-3). If we identify a violation of human rights or environmental obligations at our own operations or in our supply chain, we aim to take immediate action.

Fostering belonging and an inclusive culture

Our commitment to equal opportunity for all and non-discrimination is set out in our Human Rights Charter, Code of Conduct, Social and Labor Standards Policy as well as our Belonging & Inclusion Policy. These documents form a framework that aims to eliminate discrimination and harassment, and promote equal opportunities for all. Our Social and Labor Standards Policy specifically covers the following grounds for discrimination: gender identity, ethnicity, race, religion, faiths, sexual orientation, national origin, socioeconomic and family status, different mental or physical abilities, neurodiversity spectrum, age, military service, political perspective, or any other forms of discrimination prohibited by law.

Furthermore, our Belonging & Inclusion Policy reflects our commitment to recognizing the unique contributions of all individuals. We strive for equitable outcomes and actively work to identify and eliminate barriers that may hinder our colleagues’ contributions or ability to thrive. We are committed to fostering a truly inclusive culture for all employees; that is an environment in which all employees have a strong sense of belonging, a culture where we care about one another, everyone feels welcome, and everyone’s voice is heard. Additionally, our position papers on Belonging & Inclusion affirm that our company advocates disability inclusion and does not tolerate any form of discrimination, physical or verbal harassment or intolerance.

We have established various reporting channels to ensure employees have a clear point of contact if they believe that they have experienced harassment or discrimination in the workplace or any other violations of our standards. Their first points of contact are their supervisors, HR or compliance teams. They can also use the anonymous Compliance Hotline. All complaints are treated confidentially, and investigations are conducted by independent personnel. If violations are confirmed, we strive to implement appropriate preventive and remedial actions.

Creating a safe and healthy work environment

We are committed to going beyond EHS regulatory compliance by establishing a culture of continuous improvement and health and safety excellence. Our EHS Policy spells out our overall commitment to operating in a manner that reduces or eliminates risks to the environment, human health and safety. The complementary Safety Culture Excellence Standard describes our Group-wide approach to occupational health and safety including workplace accident prevention. Furthermore, we have a health and safety management system in place that covers the prevention of workplace accidents and is part of our globally integrated management system that comprehensively addresses quality, environmental, health, and safety aspects.

Our processes for engaging with our own workforce and employees’ representatives about impacts (S1-2)

We recognize that our workforce is a vital stakeholder in shaping our sustainability strategy and practices. To ensure that our employees’ perspectives inform our decisions concerning working conditions as well as equal treatment and opportunity for all, we have implemented the following processes:

Engagement surveys

We aim to increase employee engagement and promote individual accountability by creating regular opportunities for dialogue and participation within the company. In addition to topic-specific pulse surveys, our primary method is the annual global Employee Engagement Survey (EES), which serves as the central feedback channel for all our employees. The confidential survey allows employees to share their views on various aspects, such as employee satisfaction, leadership, workplace-related topics, (mental) health, and work-life balance. In some countries and markets, in compliance with local laws, it also includes voluntary self-identification questions related to disabilities, neurodiversity, LGBTQIA+ affiliation, and ethnic origin, helping us to foster a more inclusive environment for underrepresented groups. The EES results provide valuable data points for managers, employees and HR to reassess past and ongoing measures and develop new measures and initiatives that promote a culture of trust and collaboration in the workplace. By incorporating employee feedback, we aim to ensure that our decisions and activities align with our people’s needs and perspectives. The operational responsibility for the EES lies with our Chief People Officer.

Our Euroforum

Our Euroforum serves as our key platform to facilitate engagement between employer and employee representatives at a European level. It represents employees in all EU countries as well as Switzerland, Norway and the United Kingdom, although not all eligible countries send delegates. The members of the Euroforum represent employees in their respective countries and bring relevant topics to the Euroforum. For information and consultation, we maintain close contact with the Executive Committee, which represents our Euroforum. All delegates meet at least once a year during the forum’s annual meeting where they participate in internal consultations and social dialogue with senior management. The Euroforum thereby maintains direct access to top management, fostering transparency and trust through open communication with the Executive Board. It advocates employees’ interests and facilitates the sharing of knowledge and best practices among our European sites. The forum’s focus includes the current global (European) economic situation, employment rates and significant changes within our company affecting multiple countries. It holds regular exchanges and additional meetings as required. The Chair and Co-Chair of the Euroforum are responsible for ensuring that engagement regarding transparency and trust is not only encouraged but also effectively implemented. Their leadership plays a crucial role in integrating the insights gained from these engagements into the company’s strategic approach.

FutURe project

The FutURe project, which we launched in Europe in 2022, aims to actively involve younger generations in decision-making processes and to give them a voice in shaping the future – at our company and in society generally. The project is available in several countries in Europe and is built on three main pillars. First, we conduct the FutURe barometer, an annual survey of young employees at our operations in Europe. The purpose is to better understand their needs, priorities, and concerns. Second, we bring together young experts, senior leaders and policymakers to participate in roundtables in individual countries and at the European level. Together, they discuss key issues, such as emotional well-being, innovation and sustainable health. Third, we have established an internal advocacy platform that empowers talented young people at our company to work together on initiatives that promote topics like team leadership, cross-generational collaboration and the adoption of artificial intelligence and other innovations. The FutURe project is designed to enhance inclusion and representation, while helping position us as a pioneer in addressing the needs of next generations. It is led by the Senior Vice President Europe, Healthcare at our China & International organization.

Employee networks

We support multiple in-house Belonging & Inclusion employee groups and networks. There are nine clusters: well-being, disability, international communities, generational groups, LGBTQIA+, women, veterans, culture and ethnicity, and additional inclusion topics. These groups and networks are open to all employees and foster a strong sense of belonging for their members and allies. Their perspectives play a crucial role in informing our decisions and activities aimed at managing workforce impacts and enhancing our corporate culture and effectiveness. The groups and networks share their insights with the global Belonging & Inclusion team on a regular basis. This helps us ensure that our strategies align with our workforce’s needs and experiences. Our Chief Belonging & Inclusion Officer is responsible for our global strategy and for overseeing its activities.

Learning needs analysis

We conduct a comprehensive analysis of the skills that employees tell us they wish to develop. The analysis enables us to understand employees’ perspectives on required skills, knowledge, behaviors, and preferred learning experiences, ensuring that every voice is heard.

Group HR is responsible for ensuring that the results of the analysis inform the development of our learning catalogues at both the global and regional levels, thus shaping our approach to learning and development. The current process, driven by HR, emphasizes HR-owned learning content and portfolios, such as human skills and other cross-functional topics including change management and project management that support our High-Impact Culture. Additionally, we request feedback from all participants regarding the quality of their training sessions. The insights gathered from these feedback surveys are essential for guiding and shaping quality management activities related to our learning offerings.

Our processes to remediate negative impacts and channels for our own workforce to raise concerns (S1-3)

We have established comprehensive processes to identify, address and remediate potential material impacts on our workforce. These include readily accessible channels that encourage our workforce to report potential violations or other concerns. Our employees’ first point of contact is their supervisor, HR or our compliance units. In addition, we have other processes in place to address negative impacts on our workforce:

Our complaints system

We have set up a Group-wide whistleblowing and complaints system that can be used to report actual and potential violations. A central component of this is our free and anonymous Compliance Hotline. Our employees as well as any other person or organization can use the hotline – if they wish, anonymously – to report suspected violations or other concerns. It can be reached via our website and is available in more than 40 languages. Information on reporting channels and investigation procedures as well as general information (such as on protection from retaliation) is available to all employees in the Whistleblowing and Investigations Standard. This standard was updated in 2023 and rolled out to all employees worldwide via a training request. Every new employee is also assigned to this standard as mandatory training. More information can be found under Corporate culture (G1).

Protecting complainants from potential retaliation following a complaint is a central concern for us, to which we dedicate ourselves with utmost care. We have a compliance case management procedure in place to systematically process reports. This helps us to assess the effectiveness of the remedies provided while also aiming to address and resolve any substantiated complaint appropriately. All complaints are treated confidentially, and investigations are conducted by independent personnel. If violations are confirmed, we strive to implement appropriate preventive and remedial actions. Our complaints system is also designed with the aim of adhering to the established effectiveness criteria for non-judicial grievance mechanisms, as set out in the UN Guiding Principles on Business and Human Rights in order to be legitimate, accessible, predictable, fair, and transparent. Our complaints system is part of our commitment to creating a supportive work environment where employees can raise concerns without fear of retaliation and where their needs are addressed effectively.

Working time

We respect the right to rest and leisure and, in particular, to a reasonable limit on working hours and regular paid leave. As far as possible, we offer our employees various flexible working models to enable them to achieve a good work-life balance. We are guided by locally applicable regulations on working hours and believe that overtime should in principle be voluntary and not be demanded on a regular basis. Certain operational circumstances may, however, require overtime. Overtime may be requested to meet short-term business requirements and where permitted by national law and/or a relevant collective agreement. All employees receive at least one day off per seven-day period.

Work-life balance

We value our employees’ individuality and take their different life situations into consideration. We therefore support our employees worldwide with locally appropriate offers ranging from parental leave and childcare to support in caring for relatives in need.

We want to provide the best possible support for our employees who perform care work. Our services range from daycare centers in Darmstadt and Mumbai to emergency childcare services in Germany and the United States, as well as special networks and leave-of-absence opportunities for those who provide care to elderly or sick relatives. During 2025, we introduced the Caregiver Leave Benefit to provide emergency leave during critical situations, such as critical illness or palliative care of dependent family members. Our Colleagues Supporting Colleagues initiative creates opportunities for parents and carers to provide each other with valuable support. In addition to paid maternity leave of at least eight weeks worldwide, we offer further options for paid parental leave in many countries and markets for people who are directly involved in childcare.

Occupational safety training

Experience shows that most workplace accidents can be prevented through proper conduct. It is therefore crucial that our employees are qualified and trained in EHS issues. We not only inform them but also actively involve them, for example during inspections or when selecting personal protective equipment. In doing so, we aim to continuously improve occupational health and safety. Training as part of our BeSafe program, for example, is carried out at our locations worldwide in accordance with local regulations.

Equal pay for work of equal value

We are dedicated to ensuring equitable remuneration for all employees. To achieve this, in compliance with local laws, we have established a robust approach to pay equity that includes continuous monitoring of salary information and regular analyses to identify and address any pay disparities. When necessary, we implement individual salary adjustments to uphold equity.

We also prioritize training for our HR department as well as people managers on pay equity, empowering them to make informed and unbiased salary decisions. To assess the effectiveness of our initiatives, we evaluate the outcomes of our salary adjustments and monitor the adjusted global gender pay gap over time. This ongoing commitment enables us to drive meaningful improvements in pay equity across our organization.

We have implemented comprehensive processes to identify and address potential and actual negative impacts on our employees. This includes regular impact assessments, stakeholder engagement initiatives and data analysis to monitor workforce well-being and job satisfaction. With our approach we aim to develop and implement targeted action plans, such as enhanced health support programs and inclusion training, aimed at mitigating identified material impacts and risks. We continuously evaluate the effectiveness of these actions through feedback mechanisms and specific indicators, thereby aiming to ensure transparency in our reporting.

We prioritize the well-being of our workforce and are committed to ensuring that our practices do not cause or contribute to material negative impacts on our employees. We implement rigorous policies and procedures across all business sectors, to uphold high ethical standards and protect our workforce. Our procurement practices include thorough supplier assessments to ensure compliance with labor standards and human rights, while our sales strategies are guided by principles that prioritize employee welfare and customer integrity. In managing data, we aim to adhere to strict privacy and security protocols, safeguarding employee information and promoting responsible use of data.

In instances where tensions arise between the prevention or mitigation of material negative impacts and other business pressures, we adopt a balanced approach that emphasizes dialogue and collaboration. We engage relevant stakeholders to assess the situation, considering both the potential impacts on our workforce and the broader business objectives. This commitment to open communication enables us to make informed decisions that align with our values while maintaining operational effectiveness. Ultimately, we strive to maintain a work environment that not only meets business targets but also fosters a culture of respect, safety and well-being for all employees.

To date, we have not taken any measures to mitigate negative impacts on our workforce related to the transition to a greener, climate-neutral economy, as we have not identified any such impacts. Since we understand the significance of addressing potential challenges related to a greener transition, we remain committed to monitoring external developments that may affect our workforce and plan to evaluate the need for future actions as the situation evolves.

Fertility Benefit Program

We continued to offer the Fertility Benefit Program in 2025 as an additional service reflecting our commitment to health, well-being and Belonging & Inclusion. The program, which builds on a policy started in 2023, reimburses employees for fertility treatments and gives them access to in-house and outside support resources. It is available to all employees and/or their partners – regardless of marital status, gender identity, or sexual orientation – in all countries and markets where we operate, subject to local law. In 2025, we increased the maximum lifetime claim amount to € 100,000 for all employees, enhanced access to educational resources and advertised the program to employees across our operations.

Caregiver leave benefit

We expanded our family-friendly offerings in 2025 by introducing a caregiver leave benefit under the title Moments That Matter Leave. It reflects our ongoing commitment to employee well-being and supporting those who are carers. The benefit gives employees worldwide caring for critically and terminally ill immediate family members a minimum of ten days of paid leave. This includes but is not limited to parents, children and partners. The program reinforces our dedication to responding to employees’ personal circumstances and offering them essential support during challenging times.

BeHealthy Toolbox

As part of our global health employee strategy BeHealthy, we again offered various health promotion services in 2025, including training courses, self-tests, risk analyses, checklists, advice on mental, physical and workplace-related health. Our Mindfulness Community comprises a group of employees, including the Mindfulness Ambassadors, that regularly shares information on mindfulness, which is an awareness technique for stress regulation. We aim to anchor the topic in the workforce, and several mindfulness sessions are available globally to attend every week. We also held information campaigns and events on various health topics, such as mental health, movement and community engagement. In addition, we conducted our company’s first-ever global BeHealthy Day, consisting of various health-related online sessions as well as in-person activities at many sites.

The Employee Assistance Program (EAP), which HR offers as part of the BeHealthy Toolbox, is a confidential telephone counseling service that provides our employees with independent and holistic support. Employees can turn to the EAP for help with numerous problems. It offers short-term counseling and support for stress, anxiety, depression, relationship problems, or other personal, practical or professional problems.

Another core element of our health strategy is mandatory training for managers to promote a health-oriented leadership culture. We aim to continuously improve the concepts and related materials we provide to managers for this purpose and plan to complete the rollout by the end of 2026.

In 2025, we analyzed employee medical insurance claims in Germany based on anonymized and aggregated data from 2024 and identified health trends within our workforce. Further analyses in Indonesia and the Philippines showed two areas – dengue fever and dental hygiene – in which employee health outcomes were below expectations compared with local market norms. In response, we conducted health education campaigns in these countries to raise awareness and encourage preventive care. Employee engagement was strong. The educational materials are now part of our BeHealthy Toolbox and will be used to support similar programs in other countries in 2026 and beyond.

We use the annual Employee Engagement Survey to calculate our healthiness index and track the effectiveness of our actions. This is intended to show the health status of our employees throughout the Group. We also measure the implementation progress of the BeHealthy strategy by the extent to which our employees use the BeHealthy Toolbox and participate in the Mindfulness Community.

Analysis of pay differences

In line with our company values of integrity and respect, in compliance with local laws, we are driving pay equity, a crucial aspect of our Belonging & Inclusion strategy. The journey toward global gender pay equity started in 2021 by analyzing ten of our largest countries and markets, which encompassed approximately 80% of our total workforce. We extended the analysis in 2023 to all countries and markets where we operate (except for the United States) and repeated this global analysis in 2025. More information can be found under S1-16.

Daily commitment to inclusion

Our framework for Belonging & Inclusion education, tools and best practice sharing along with empowerment measures supports intentional inclusion in our organization. For example, an Inclusive Leadership Workshop, which is mandatory for all our leaders, helps maximize their effectiveness in building belonging-oriented and inclusive teams. The workshop combines global leadership interactions, peer coaching and continuous self-reflection. It also emphasizes the importance of psychological safety.

In 2025, we launched the Belonging & Inclusion Learning Hub as a one-stop resource, enabling everyone at our organization to help foster a more inclusive and supportive workplace. It provides employees at all levels with structured learning opportunities to deepen their Belonging & Inclusion awareness. It consists of self-guided learning materials, digital leaning modules and the new Inclusive Leadership Workshop, which is now available to our entire workforce. The Belonging & Inclusion Learning Hub embeds inclusive practices into daily work to support our broader sustainability objectives.

Further, our ongoing Tech4Inclusion initiative is part of our global Belonging & Inclusion strategy and embeds accessibility as well as inclusive design into our digital experience and infrastructure. The initiative helps remove barriers and fosters an equitable workplace. Examples include enabling live captions in meetings, providing multiple content formats and leveraging inclusive design principles.

In addition, we offer numerous opportunities for employees to learn how to be more inclusive colleagues, reduce unconscious bias at work and foster psychological safety, particularly in countries where such training is permitted. In 2025, we continued to implement a mandatory e-learning module on preventing workplace harassment for our employees across all countries and markets, as allowed by law.

Neurodiversity

Our approach to accessibility and neuroinclusion focuses on eliminating social barriers and recognizing neurodiversity as a natural variation in human cognition, identity and communication. We are committed to fostering a more inclusive culture by engaging in sustained socialization and awareness initiatives to enhance organizational understanding of neurodiversity and accessibility. These efforts are designed to address cultural nuances, foster validation and flexibility, and close knowledge gaps across our global operations.

Our Global Accessibility Strategy Roadmap to 2030 reflects this proactive, multi-layered and data-driven approach. In 2025, we introduced a comprehensive Inclusive Workplace Toolkit to guide facility design, inclusive engagement practices and welcoming workspaces – adapted to local needs and contexts. Our Success Enablers pilot service empowers employees to explore personalized support options that reflect their lived experiences and help remove traditional barriers.

Individual development

In 2025, we continued the MyGrowth initiative. With this, we aim to further strengthen our commitment to a competency-oriented company. Enabled by a growth mindset and our AI-driven platform, MyGrowth represents a commitment to development that enables employees to shape their professional journey at our company. By providing access to tailored learning opportunities, mentorship programs and internal job prospects, and more, MyGrowth promotes a continuous learning culture that aligns employee growth with the strategic needs of the company.

Continuous advancement of learning and development

Our global Learning & Development experts are revising our global learning and development landscape with the aim of improving our employees‘ learning experience. The objective is to come up with a refined training standard, establishing well-defined roles and responsibilities for managing learning content, overseeing the portfolio and coordinating the learning processes across all business sectors and Group functions. We want to implement this strategic approach throughout the company over the next three to five years.

Roles and responsibilities

Global HR is responsible for advising all business sectors and Group functions on matters concerning human capital, such as topics related to recruiting, vocational training and advanced training. Across all our sites, HR employees work with leaders from various functions and business sectors to employ strategies that engage our people in line with Group-wide HR guidelines and requirements, including attractive compensation and benefits.

The Chief People Officer and Member of the Executive Board is responsible for Group HR. The Chief People Officer also serves as our Chief HR Officer, leading the HR function and overseeing all our HR activities. Our Business Services unit oversees the operational tasks of HR work, such as drafting contracts and payroll accounting. The Chief Financial Officer is responsible for this unit. Our Chief Belonging Officer reporting to the Chief People Officer and member of the Executive Board is responsible for our global strategy and for steering its related activities.

Our health and safety management system is the responsibility of Corporate Sustainability, Quality and Trade Compliance (SQ), which in turn reports to the Chief People Officer and Member of the Executive Board. SQ sets objectives, oversees the respective initiatives globally and conducts internal EHS audits. Local EHS managers and their teams work towards ensuring that our individual sites comply with all occupational health and safety laws and regulations. The EHS managers also implement local projects, campaigns and onsite programs.

ESRS S1-5 – Lost Time Injury Rate (LTIR)

Lost Time Injury Rate (LTIR)

Reference to material impacts, risks and/or opportunities

 

Identifier S1-PI-01

Material sustainability matter

 

Working conditions: health and safety

Target

 

Our target is to reduce our lost time injury rate (LTIR) to below 1.0 by the end of 2025.

Reference value/year

 

1.2 (2021)

Methodology

 

LTIR measures all work-related accidents resulting in injuries worldwide that have resulted in at least one day of missed work per one million hours worked. We determine Group-wide LTIR for our employees. It is one of our strategic key indicators which is monitored by the Group Sustainability Council.

Consideration of stakeholders

 

When setting safety targets, we take the employee perspective into account, aiming to protect their safety with a reduced LTIR. We continuously consider internal stakeholders while monitoring our performance.

Changes from the previous year

 

No changes were made.

Performance/Key figures

 

Our LTIR amounted to 0.98 (2024: 1.16).

ESRS S1-5 – Injury Count Rate (ICR)

Injury Count Rate

Reference to material impacts, risks and/or opportunities

 

Identifiers S1-PI-01

Material sustainability matter

 

Working conditions: health and safety

Target

 

Our target is to reduce our injury count rate (ICR) to 1.8 or below at the end of 2030.

Reference value/year

 

2.15 (December 2025)

Methodology

 

ICR measures all work-related accidents resulting in injuries worldwide that have resulted in at least one day of missed work per one million hours worked as well as all medical treatment cases. We determine Group-wide ICR for our employees. It is one of our strategic key indicators which is monitored by the Group Sustainability Council.

Consideration of stakeholders

 

When setting safety targets, we take the employee perspective into account, aiming to protect their safety with a reduced ICR. We continuously consider internal stakeholders while monitoring our performance.

Changes from the previous year

 

New target.

Performance/Key figures

 

Our ICR amounted to 2.15.

ESRS S1-5 – Workforce representation and equal opportunity: Women in leadership

Workforce representation and equal opportunity: Women in leadership

Reference to material impacts, risks and/or opportunities

 

Identifiers S1-NI-04; S1-PI-02

Material sustainability matter

 

Equal treatment and opportunities for all: gender equality and equal pay for work of equal value; diversity

Target

 

We provide equal opportunities for all backgrounds to join and succeed at our company based on performance and potential. We aim to achieve workforce balance, including diverse representation such as gender balance in management positions outside the United States by 2030.

Reference value/year

 

36% (2021, including U.S.)

Methods

 

To calculate the share of women in leadership outside the United States, we consider the number of women from middle and top management (role level 4+) in relation to the total number of middle and top management employees. The indicator is monitored by the Belonging & Inclusion Council, which is responsible for integrating Belonging & Inclusion activities into the company’s strategy and identifying areas for improvement to develop targeted initiatives.

Consideration of stakeholders

 

We have involved internal stakeholders such as the HR department, Employee Resource Groups, the Belonging & Inclusion Council, and Executive Board when setting the aspiration, and are in continuous communication with affected internal stakeholders when tracking progress.

Changes from the previous year

 

We combined our initial target for gender equity, culture and ethnicity into a comprehensive focus on workforce representation and equal opportunities for all. This approach allows us to track our workforce more cohesively. We have removed numerical aspirations for the United States.

Performance/Key figures

 

The share of women in leadership (middle and top management, role 4+, without United States) amounted to 39.2%.

ESRS S1-5 – Belonging & Inclusion: Participants in Inclusive Training Offerings

Belonging & Inclusion: Participants in Inclusive Training Offerings

Reference to material impacts, risks and/or opportunities

 

Identifier S1-NI-03

Material sustainability matter

 

Equal treatment and opportunities for all: diversity

Target

 

We build inclusive leadership and learning practices into our global culture, fostering a sense of belonging for all. To achieve this, all employees and people managers have access to inclusion training offerings. We aim to maintain a participation rate of >90% by 2030.

Reference value/year

 

37% (2021, people managers)

Methods

 

To calculate the proportion of participants in Belonging & Inclusion trainings, we consider the number of participants since 2021 in relation to the total number of employees. The indicator is monitored by the Group Sustainability Council and the Belonging & Inclusion Council, which is responsible for integrating Belonging & Inclusion activities into the company’s strategy and identifying areas for improvement to develop targeted initiatives.

Consideration of stakeholders

 

We have involved internal stakeholders such as the HR department, Employee Resource Group, the Belonging & Inclusion Council, and the Executive Board when setting the aspiration and are in continuous communication with affected internal stakeholders when tracking progress.

Changes from the previous year

 

We expanded the target to include more than the Inclusive Leadership Workshops and added additional inclusion training offerings, broadening the target audience to include all employees and not only people managers.

Performance/Key figures

 

The cumulative participation rate for all employees amounted to 88%.

We have not set measurable, outcome-oriented targets in accordance with ESRS requirements for the material sustainability matters of adequate wages, collective bargaining, secure employment, working time, work-life balance, or training and skills development. Nevertheless, we track the effectiveness of our policies and measures related to these sustainability matters through engagement processes (see S1-2) or by monitoring progress with specific indicators (see S1-6, S1-8, S1-10, S1-13).

Unless otherwise stated, we report our employee-related figures in headcount and as of December 31, 2025. The actual workforce size is defined as the number of people (‘heads’) who work for us, considering only active employees based on their status. All active regular employees count as one person. Regular employees include those working either full-time or part-time and have either a limited or unlimited formal contract with one of our subsidiaries. Non-employees are not included.

For the employee breakdown by gender, we use the following three gender categories: ‘female’, ‘male’ and ‘other’ (including ‘not reported’). To determine gender, we use information provided in accepted identification documents in the country of location of the employee. The country breakdown only consists of countries where we employ 50 or more employees representing at least 10% of our total number of employees. The measurement of any employee-related metric has not been validated separately by an external body.

Characteristics of our employees (S1-6)

In the following table, we disclose the total number of employees, broken down by gender:

ESRS S1-6 – Total number of employees by gender

 

 

20251

 

2024

 

2025
thereof: Merck KGaA, Darmstadt, Germany

 

2024
thereof: Merck KGaA, Darmstadt, Germany3

Male

 

34,962

 

35,168

 

2,190

 

2,248

Female

 

27,478

 

27,245

 

1,442

 

1,467

Other2

 

21

 

144

 

1

 

Total employees

 

62,461

 

62,557

 

3,633

 

3,715

1

The Group also employs people at sites of subsidiaries that are not fully consolidated. This number refers to people employed in fully consolidated subsidiaries.

2

In 2024, most employees in the category "other" belonged to the acquired subsidiary, Unity-SC SAS, France. The integration process resulted in incomplete gender demographic data from the acquired company.

3

A dash indicates that a value was collected that corresponds to 0 when rounded.

The following table displays the number of employees in each country where we have 50 or more employees representing at least 10% of our total number of employees. We determine the employee’s country allocation by the work location of the respective employee.

ESRS S1-6 – Number of employees in each country

 

 

2025

 

2024

 

2025
thereof: Merck KGaA, Darmstadt, Germany
1

 

2024
thereof: Merck KGaA, Darmstadt, Germany1

Germany

 

12,540

 

13,236

 

3,633

 

3,715

United States

 

14,383

 

13,976

 

 

 

 

1

A gray background indicates that the value was not collected.

The most representative numbers in the Financial Statements that are related to the general characteristics of our employees can be found in the Notes to the Consolidated Financials Statements under (31) “Number of employees” and under (8) “Segment Reporting”.

In general, we aim to ensure the safe employment of our employees and to comply with legally prescribed country-specific exemptions. The following table presents the number of employees by contract type and broken down by gender:

2025

 

 

Female

 

Male

 

Other

 

Total

Total number of employees

 

27,478

 

34,962

 

21

 

62,461

Number of permanent employees

 

25,763

 

33,294

 

20

 

59,077

Number of temporary employees

 

1,715

 

1,668

 

1

 

3,384

1

The Group also employs people at sites of subsidiaries that are not fully consolidated. This number refers to people employed in fully consolidated subsidiaries.

2024

 

 

Female

 

Male

 

Other

 

Total

Total number of employees

 

27,245

 

35,168

 

144

 

62,557

Number of permanent employees

 

25,381

 

33,495

 

144

 

59,020

Number of temporary employees1

 

1,864

 

1,673

 

 

3,537

1

A dash indicates that a value was collected that corresponds to 0 when rounded.

2025
thereof: Merck KGaA, Darmstadt, Germany

 

 

Female

 

Male

 

Other

 

Total

Total number of employees

 

1,442

 

2,190

 

1

 

3,633

Number of permanent employees1

 

1,394

 

2,138

 

 

3,532

Number of temporary employees

 

48

 

52

 

1

 

101

1

A dash indicates that a value was collected that corresponds to 0 when rounded.

2024
thereof: Merck KGaA, Darmstadt, Germany

 

 

Female

 

Male

 

Other1

 

Total

Total number of employees

 

1,467

 

2,248

 

 

3,715

Number of permanent employees

 

1,426

 

2,189

 

 

3,615

Number of temporary employees

 

41

 

59

 

 

100

1

A dash indicates that a value was collected that corresponds to 0 when rounded.

The figures disclosed for permanent employees include all active employees who have an unlimited contract with one of our subsidiaries. The figures disclosed for temporary employees include all active employees who have a limited contract. We do not apply non-guaranteed hours employment contracts. Therefore, we do not report this category.

The total number of employees who have left the company during fiscal 2025 amounted to 5,036 (2024: 5,746). Thus, in 2025, the employee turnover rate amounted to 8.0% (2024: 9.2%). The employee turnover rate is calculated by dividing the total number of leavers (including voluntary as well as involuntary fluctuation) during the reporting period by the average employee headcount in the same period multiplied by 100. The turnover indicators exclude employees who pause due to parental leave or a long-term illness as well as employees who are transitioning to the non-working phase of partial retirement. Employees who leave the company due to a divestment e.g. our Surface Solutions business unit are excluded as well.

Collective bargaining coverage and social dialogue (S1-8)

The following table presents the overall collective bargaining coverage among our employees. We apply the phase-in option per ESRS 1 Appendix C and thus the figures only contain the total percentage across countries and markets where we operate, that are part of the European Economic Area (EEA). Within the EEA, we have multiple collective bargaining agreements:

ESRS S1-8 – Collective bargaining coverage and social dialogue

 

 

20251

 

2024

 

2025
thereof: Merck KGaA, Darmstadt, Germany

 

2024
thereof: Merck KGaA, Darmstadt, Germany

Total employees covered by collective bargaining agreements (in %)

 

85.7

 

86.0

 

16.0

 

16.0

1

The Group also employs people at sites of subsidiaries that are not fully consolidated. This number refers to people employed in fully consolidated subsidiaries.

Furthermore, the following table shows the percentage of our employees covered by collective bargaining agreements broken down by country for countries that are part (or not part) of the EEA. We only disclose the coverage for EEA countries where we employ at least 50 employees (by headcount) collectively representing at least 10% of our total number of employees. We cluster the countries according to their coverage rate. Applying the same approach, we also disclose the percentage of employees covered by workers’ representatives by EEA country.

2025

 

 

Collective bargaining coverage

 

Social dialogue

Coverage Rate

 

Employees – EEA (for countries with >50 employees representing >10% total employees)

 

Employees – Non-EEA (estimate for regions with >50 employees representing >10% total employees)

 

Workplace representation (EEA only) (for countries with >50 employees representing >10% total employees)

0 – 19%

 

 

Phase-in option

 

20 – 39%

 

 

Phase-in option

 

40 – 59%

 

 

Phase-in option

 

60 – 79%

 

 

Phase-in option

 

80 – 100%

 

Germany; Merck KGaA, Darmstadt, Germany

 

Phase-in option

 

Germany; Merck KGaA, Darmstadt, Germany

2024

 

 

Collective bargaining coverage

 

Social dialogue

Coverage Rate

 

Employees – EEA (for countries with >50 employees representing >10% total employees)

 

Employees – Non-EEA (estimate for regions with >50 employees representing >10% total employees)

 

Workplace representation (EEA only) (for countries with >50 employees representing >10% total employees)

0 – 19%

 

 

Phase-in option

 

20 – 39%

 

 

Phase-in option

 

40 – 59%

 

 

Phase-in option

 

60 – 79%

 

 

Phase-in option

 

80 – 100%

 

Germany; Merck KGaA, Darmstadt, Germany

 

Phase-in option

 

Germany; Merck KGaA, Darmstadt, Germany

In countries and markets where collective agreements do not apply due to different administrative, commercial and legal structures, we work closely with trade unions to implement operational decisions and coordinate relations between management and employees. The working conditions and terms of employment of employees in these countries are determined by legal requirements and our global guidelines.

Regarding employee representation, we have an agreement on the establishment of our Euroforum. More information on the Euroforum can be found under S1-2.

Adequate wages (S1-10)

We are committed to the principle of “equal pay for equal work” and offer our employees competitive remuneration including additional benefits. The remuneration at least meets or exceeds the local remuneration conditions and guidelines and is intended to ensure a decent standard of living for our employees and their families. Our remuneration is based on the requirements of the respective position and the employee’s performance. Our remuneration structures are benchmarked externally and updated based on prevailing local conditions. We empower our managers to decide on employees’ pay, based on local conditions and the requirements of the job, within the framework of the company’s remuneration structures and philosophy. Managers are responsible for enabling employees to understand our remuneration structures and addressing any concerns. If there are further concerns, our HR Business Partners may be contacted by the employees as well.

To calculate whether all our employees are paid an adequate wage, we record the local minimum wage requirements and the wage of the lowest-paid employee per country and compare the two. The cut-off date for the data collected was December 31, 2025.

We comply with local regulations for appropriate remuneration in all countries and markets in which we operate worldwide. In the reporting period, we paid all our employees an adequate wage, in line with the methodology described above.

Health and safety metrics (S1-14)

The following table discloses the share of our own workforce that is covered by our occupational health and safety management system. The calculation is based on head count:

ESRS S1-14 – Share of workforce covered by occupational health and safety management system

 

 

2025

 

2024

Total (in %)

 

100.0

 

100.0

Our occupational health and safety (OHS) management system considers the key positions of ISO 45001 and is established Group-wide as part of our globally integrated management system. This approach enables us to ensure, among other things, the occupational health and safety of all employees. Furthermore, as part of a Group certificate, our OHS management system is annually ISO 45001-certified at selected sites. The sites individually define the scope of their certification. For example, at the Darmstadt site, the ISO 45001 certificate covers employees in the production units as well as those working in infrastructure. For the coverage percentage disclosed above, we consider the coverage of our OHS management system and thus, the number includes exclusively our own employees. This also applies to employees who work at non-certified sites as well as those who are active at sites that are not included in the Group certificate, since our OHS management system is established at all our locations.

The following tables disclose figures regarding work-related accidents. A work-related accident is defined as an event that occurs during the course of work that results in injury or ill health. This encompasses sudden personal injuries that happen on site or during business trips, as long as they are connected to the employee’s work and not caused by internal factors, such as heart attacks or epilepsy. Additionally, pre-existing damage to ligaments, joints, or back issues is typically not included. Injuries that occur while commuting or during company sports activities are also not counted in the figures below. Work-related ill health refers to any illness that can be attributed to the workplace and is verified by an occupational physician.

2025

 

 

Employees1

 

Non-employees1

 

Total1

Number of fatalities as a result of work-related injuries

 

 

 

Number of recordable work-related accidents

 

236

 

27

 

263

Rate of recordable work-related accidents

 

2.1

 

2.9

 

2.1

Number of cases of recordable work-related ill health

 

38

 

 

 

 

Number of days lost to work-related injuries and fatalities from work-related accidents

 

2,643

 

 

 

 

1

A dash indicates that a value was collected that corresponds to 0 when rounded. A gray background indicates that the value was not collected.

2025
thereof: Merck KGaA, Darmstadt, Germany

 

 

Employees1

 

Non-employees1

 

Total1

Number of fatalities as a result of work-related injuries

 

 

 

Number of recordable work-related accidents

 

16

 

 

16

Rate of recordable work-related accidents

 

1.9

 

 

1.8

Number of cases of recordable work-related ill health

 

 

 

 

 

Number of days lost to work-related injuries and fatalities from work-related accidents

 

136

 

 

 

 

1

A dash indicates that a value was collected that corresponds to 0 when rounded. A gray background indicates that the value was not collected.

2024

 

 

Employees2

 

Non-employees2

 

Total2

Number of fatalities as a result of work-related injuries

 

 

 

Number of recordable work-related accidents

 

287

 

14

 

301

Rate of recordable work-related accidents

 

2.5

 

1.6

 

2.5

Number of cases of recordable work-related ill health

 

36

 

 

 

 

Number of days lost to work-related injuries and fatalities from work-related accidents

 

2,9111

 

 

 

 

1

The value for 2024 (5,783) has been adjusted retrospectively (see also ESRS 2 Basis and standards of reporting).

2

A dash indicates that a value was collected that corresponds to 0 when rounded. A gray background indicates that the value was not collected.

2024
thereof: Merck KGaA, Darmstadt, Germany

 

 

Employees2

 

Non-employees2

 

Total2

Number of fatalities as a result of work-related injuries

 

 

 

Number of recordable work-related accidents

 

37

 

1

 

38

Rate of recordable work-related accidents

 

3.4

 

64.7

 

3.5

Number of cases of recordable work-related ill health

 

4

 

 

 

 

Number of days lost to work-related injuries and fatalities from work-related accidents

 

3251

 

 

 

 

1

The value for 2024 (1,789) has been adjusted retrospectively (see also ESRS 2 Basis and standards of reporting).

2

A dash indicates that a value was collected that corresponds to 0 when rounded. A gray background indicates that the value was not collected.

The number of fatalities as a result of work-related injuries of other workers working on our sites, such as contractors, amounted to 0 in fiscal 2025 (2024: 0).

The rate of recordable work-related accidents represents the number of respective cases per one million hours worked without taking into account whether these cases resulted in missed days of work. Additionally, we report the lost time injury rate (LTIR) under S1-5 and ESRS 2 as it is one of our strategic sustainability key indicators used to gauge the success of our occupational safety efforts. LTIR measures work-related injuries resulting in at least one day of missed work per one million hours worked (see S1-5 and ESRS 2).

Additionally, we use our Environment, Health and Safety Incident Rate (EHS IR) to track incidents. Under our EHS IR, we track and evaluate all major and minor accidents, environmental incidents as well as EHS non-compliances. It covers both our own employees as well as those of contractors. To calculate it, we state the number of incidents and the severity of the event in relation to the number of hours worked. The EHS IR represents an average value. The lower the EHS IR, the better the EHS performance of the site. In 2025, the ratio was 1.85 (2024: 2.23). As one of our strategic key indicators, we also report the EHS IR under ESRS 2 (SBM-1).

Incidents, complaints and severe human rights impacts (S1-17)

The following table shows the number of work-related incidents and complaints concerning a violation of our Social and Labor Standards Policy within our own workforce. We distinguish between the number of reported violations filed through our existing grievance system as well as the number of confirmed violations of our Social and Labor Standards Policy during 2025. Confirmed violations comprise reported violations that were confirmed following investigations. Additionally, we disclose the number of reported and confirmed incidents of discrimination, including harassment as a specific form of discrimination.

ESRS S1-17 – Work-related incidents and complaints concerning a violation of our Social and Labor Standards Policy within our own workforce

 

 

2025

 

2024

Total number of complaints filed through channels for people in our own workforce to raise concerns: reported incidents of our Social and Labor Standards Policy

 

231

 

183

thereof: number of complaints of discrimination, including harassment: reported incidents

 

37

 

28

Total number of complaints filed through channels for people in our own workforce to raise concerns: confirmed incidents of Social and Labor Standards Policy

 

60

 

57

thereof: total number of complaints of discrimination, including harassment: confirmed incidents

 

16

 

10

The total number of confirmed violations of the Social and Labor Standards Policy is one of our strategic key indicators which we use to measure the progress of our sustainability strategy in the focus area of ‘Our people and communities; providing a diverse and inclusive environment’, see ESRS 2 (SBM-1).

In 2025, fines, penalties and compensation for damages as a result of incidents and complaints disclosed in the table above totaled € 0 (2024: € 0). During the reporting period, no complaints in connection with our company and related to matters concerning our employees were filed to the National Contact Points for OECD Guidelines for Multinational Enterprises.

The following table discloses the number of severe human rights incidents connected to our own workforce. We consider incidents of forced labor, modern slavery, human trafficking and child labor as severe human rights incidents.

ESRS S1-17 – Number of severe human rights incidents connected to our own workforce

 

 

2025

 

2024

Number of severe human rights incidents connected to own workforce1

 

 

thereof: cases of non-respect of the UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises1

 

 

1

A dash indicates that a value was collected that corresponds to 0 when rounded.

In 2025, fines, penalties and compensation for damages as a result of severe human rights incidents disclosed in the table above totaled € 0 (2024: € 0).

Diversity metrics (S1-9)

The following table discloses the gender distribution at our top-management level:

ESRS S1-9 – Gender distribution at our top-management level

 

 

20251

 

2024

 

2025
thereof: Merck KGaA, Darmstadt, Germany

 

2024
thereof: Merck KGaA, Darmstadt, Germany

Number of female employees at top management level

 

61

 

58

 

18

 

15

Share of female employees at top management level (in %)

 

31.3

 

29.9

 

32.0

 

30.6

Number of male employees at top management level

 

134

 

136

 

38

 

34

Share of male employees at top management level (in %)

 

68.7

 

70.1

 

68.0

 

69.4

Number of employees with other gender at top management level2

 

 

 

 

Share of employees with other gender at top management level (in %)2

 

 

 

 

Total number of employees at top management level

 

195

 

194

 

56

 

49

1

The Group also employs people at sites of subsidiaries that are not fully consolidated. This number refers to people employed in fully consolidated subsidiaries.

2

A dash indicates that a value was collected that corresponds to 0 when rounded.

We define top management level as all employees in senior management positions (Role 6+). We use a market-oriented system to rate positions within the company. To facilitate consistency across the organization, each position is assigned to a specific role with an overarching job architecture classifying each role as one of 11 levels, 15 functions and a range of career types (Core Operations, Services & Support Groups; Experts; Managers; Project Managers).

The following table shows the total number of employees, broken down by age:

ESRS S1-9 – Total number of employees, broken down by age

 

 

20251

 

2024

 

2025
thereof: Merck KGaA, Darmstadt, Germany

 

2024
thereof: Merck KGaA, Darmstadt, Germany

Number of employees under 30 years old

 

7,750

 

8,174

 

483

 

504

Number of employees between 30 and 50 years old

 

40,046

 

39,520

 

2,107

 

2,099

Number of employees over 50 years old

 

14,665

 

14,862

 

1,043

 

1,112

1

The Group also employs people at sites of subsidiaries that are not fully consolidated. This number refers to people employed in fully consolidated subsidiaries.

Based on birth year, we determine employees’ age and allocate them to their respective age group.

Training and skills development metrics (S1-13)

The following table discloses employees’ participation in regular performance and career development reviews, including a breakdown by gender as well as the average number of training hours per employee:

ESRS S1-13 – Participation among our employees in regular performance and career development reviews, including a breakdown by gender:

 

 

2025

 

2024

Share of employees that participated in regular performance and career development reviews (in %)

 

98.0

 

98.0

by gender

 

 

 

 

Female (in %)

 

98.0

 

99.0

Male (in %)

 

98.0

 

98.0

Other (in %)

 

29.0

 

3.0

Performance and career development indicators are based on the number of performance reviews (year-end conversations) documented in our central HR system. Year-end conversations are considered valuable input for career and development conversations. The majority of employees in the category “other” belongs to a in 2025 acquired subsidiary. As Employee data related to performance management is not yet fully integrated into our database Therefore, the actual percentage of employees in the gender category “other” may be higher.

Work-life balance (S1-15)

100% of our employees were entitled to take family-related leave, ensuring that all employees have access to one or more of these leave options. Family-related leave includes maternity (or primary carer) leave, paternity (or secondary carer) leave, general leave related to children, and specific leave for critical situations related to immediate family (or carer) leave.

Remuneration metrics (pay gap and total remuneration) (S1-16)

Our remuneration is based on the requirements of the respective position on the one hand and the performance of the individual employee on the other hand. We make no distinctions based on gender or any other demographic characteristics. To ensure a competitive remuneration structure, we regularly review our salary policy using data analyses and industry benchmarks. Before we make changes, we thoroughly analyze current market conditions and practices and involve relevant stakeholders as well as important stakeholder groups, such as employee representatives, where applicable. In addition to individual performance, our annual and long-term incentive plans measure company performance on the basis of financial and non-financial indicators. The latter are intended to drive forward our High-Impact Culture and sustainability strategy. In addition to a competitive salary, we offer attractive additional and social benefits through our benefits programs, such as a company pension scheme, health insurance and other employee insurances as well as other local offers, such as bicycle leasing or discount programs.

The percentage gap in pay between female and male employees, expressed as a percentage of the average pay level of male employees, amounted to 7.3% (2024: 8.8%) in 2025 (unadjusted pay gap). For the calculation, we considered the difference in average pay levels between female and male employees. Additionally, we opt to analyze the adjusted gender pay gap as we understand that this metric provides a more accurate representation of pay disparities by controlling for various factors such as education, experience and job roles. The adjusted gender pay gap defines the difference in average pay levels between female and male employees after controlling for various factors that can influence pay. In the most recent analysis of all countries and markets where we operate (except the United States), the adjusted (unexplained) gender base pay gap was identified to be less than 1.5% in favor of men. While this outcome is positive and below the established benchmark, we remain committed to monitoring pay data and taking appropriate actions as necessary.

The ratio between the remuneration of our highest-paid individual and the median remuneration for our employees amounted to 122 in fiscal 2025 (2024: 97.3). The underlying calculations for both indicators are based on taxable employee compensation; they include annual base salary, short-term and long-term incentives, all other recurring payments (such as allowance and profit sharing), and all benefits in kind (taxable benefits). Various objective factors influence the pay gap as well as the total annual remuneration, including the type of work, the country/market and business sector in which employees are employed as well as individual factors such as educational qualifications, length of service, age, performance, and work experience. To calculate the median annual total remuneration, we included all employees who worked for us the full year, excluding the highest paid individual and employees on unpaid leave.

Share this page: