In 2010, we began to reevaluate how we measure our corporate responsibility efforts. With more than 80 separate key performance indicators (KPIs), we recognized a need to focus these measurements with our new corporate responsibility framework.

First, we categorized the existing measurements according to the priority areas of our new framework: Access to Health, Environmental Sustainability, Employees, and Ethics and Transparency. If measurements did not fit into these categories, they were evaluated for materiality and either kept as a measurement for our overall reporting efforts or discontinued.

We then presented the distilled measurements under each framework category to various stakeholders in relevant business areas to test whether each metric was a useful business assessment and whether it measured progress and improvement effectively.

After several reviews, including input from senior management responsible for each area of the framework, we settled on a set of 36 KPIs that directly align with this framework and our business priorities to help us measure our progress.

The following list of KPIs serve as a baseline measurement for our corporate responsibility activities. Many of these metrics belong to a subset of the existing metrics and, where applicable, were carried over to this data set, while others have been newly created. We will begin reporting on this complete list of measurements in our 2011 corporate responsibility report. These indicators are measured globally unless otherwise noted and cover all our business units with the exception of joint ventures.

Research & Development

Percentage of top 20 global burdens of illness addressed by our products and pipeline (as defined by WHO and excluding accidents, premature births and self-inflicted injuries)

Number of GCP/PV audits by regulatory agencies of Merck or clinical trial investigators that led to significant fines, penalties, warning letters or product seizures

Number of (new) initiated licenses for new technologies

Narrative of compounds provided to Product Development Partnerships

Manufacturing & Supply

Number of product recalls in the United States

Number of countries we currently supply with our products

Number (and examples) of local and regional manufacturing partnerships (globally)

Number of products available via local and regional partnerships

Registration

Number of new registrations (per year) by region

Percent of local regulatory agency GCP/PV training requests fulfilled that will help strengthen agency capabilities with their GCP/PV compliance oversight role

Enumeration of products that are submitted or have achieved WHO prequalification

Commercialization

Number of products for which we have access pricing

Number of countries where at least one product has intra-country pricing of public and private sectors

Amount of investment into patient and provider education programs

Community Investment

Number of healthcare workers trained through our major programs and partnerships

Amount of investment in partnerships for activities to address underlying barriers to health, such as nutrition and access to clean water.

Number of patients reached through our major programs & partnerships

Total Greenhouse Gas (GHG) emissions (as CO2e) (million metric tons)

Emissions of Volatile Organic Compounds (VOCs) (metric tons)

Total water usage (billions of gallons)

Hazardous waste generated/recycled (metric tons)

Nonhazardous waste generated/recycled (metrics tons)

Diversity & Inclusion

Percentage of women in executive roles** (US)

Percentage of women on the Board

Percentage of underrepresented ethnic groups on the Board

Percentage of underrepresented ethnic groups in the workforce (US)

Well-being

Percentage of employees engaged or fully engaged (Merck Culture Survey)

Percentage of employees who have completed health assessment (U.S.)

Overall turnover rate *** (%)

Employee Lost Time Incident Rate (LTIR)

Employee Recordable Injury Rate (RIR)

Volunteerism

Percentage of employees who took release time according to the global policy on employee volunteerism

Total number of volunteer hours

Percentage of employees trained on our Code of Conduct

Number of substantiated concerns raised to the Office of Ethics/Ombudsman/AdviceLine

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

^* Metrics in the access to health section align with our new Access to Health Guiding Principles

^**Executive is defined as one to two levels below the Chief Executive Officer (CEO).

^***Overall turnover incorporates all types of turnover, including restructuring.