Merck's centralized environmental, health & safety (EHS) information system allows us to collect, manage, learn from and share our safety & environmental (S&E) performance data more efficiently.

Both leading and lagging metrics are collected and the data are analyzed and used to drive performance improvement. The system is designed to support the user through logic-driven drop-down menus and other reporting aids. In 2010 we further expanded the system to include former Schering-Plough facilities and to enable tracking internal audit activities. We will continue to seek ways to expand use of EHS information systems to enhance our ability to collect, maintain, analyze, learn from and report EHS data.

Regulatory Inspections

In 2010, Merck received 308 inspections by EHS regulatory agencies around the world. This represents a comparable number of environmental inspections and a 20% decrease in safety inspections in 2010 over 2009. These inspections helped to confirm the positive compliance status of our facilities around the world. Where compliance issues were identified, they did not represent significant risks to human health or the environment and are not expected to result in significant enforcement actions. Corrective actions to address identified issues were implemented in a timely manner.

Environmental Events

Merck sites reported 123 spills and releases in 2010. This number is higher than previous years because of more stringent internal reporting requirements that were established in 2010 as part of the harmonization of reporting definitions between the two former companies. The reported events were either greater than 55 gallons or were smaller-volume incidents that required reporting to a regulatory authority.

Merck experienced 92 water permit exceedances in 2010, versus 130 in 2009, and 12 air permit exceedances in 2010 versus 13 in 2009. These events were generally minor temporary excursions, but site staff actively investigate each incident and develop corrective action plans to address identified root causes.

Citations, Notices of Violation, Fines & Settlements

Merck received 123 safety notices of violation (NOVs) in 2010, which is much higher than the prior year due to more stringent internal reporting requirements that were established in 2010 as part of the harmonization of reporting definitions with the integration of the former Schering-Plough organization. The number of safety NOVs increased primarily in areas related to elevator and cafeteria inspections. Merck paid one safety-related fine of $631 in 2010.

Merck received 30 NOVs for environmental matters in 2010. The total number of environmental NOVs received is consistent year on year. Merck paid $70,201 in fines associated with environmental enforcement actions in 2010.