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 38 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. These indicators are measured globally unless otherwise noted and cover all our business units with the exception of joint ventures.

Research & Development	2011
Top 20 global burdens of illness addressed by our products and pipeline (as defined by the WHO, and excluding accidents, premature birth and self-inflicted injuries)	53%
GCP/PV audits by regulatory agencies of Merck or clinical trial investigators that led to significant fines, penalties, warning letters or product seizures	0
Initiated (new) licenses for new technologies	52
Narrative of compounds provided to Product Development Partnerships1	Online
Manufacturing & Supply
Product recalls in the United States	0
Countries we currently supply with our products	140
Local and regional manufacturing partnerships	130
Products available via local and regional manufacturingpartnerships2	N/A
Registration	2011
New product and device registrations by region3,4	334
Local regulatory agency GCP/PV training requests fulfilled that will help strengthen agency capabilities with their GCP/PV compliance oversight role5	Online
Products submitted that have achieved WHO prequalifications	10
Commercialization
Products for which we have access pricing6	17
Countries where at least one product has intra-country pricing of public and private sectors7	49
Investment in patient-and-provider-education programs	$93.9M
Community Investment
Healthcare workers trained through our major programs and partnerships8	51,600
Investment in partnerships for activities that address underlying barriers to health, such as nutrition and access to clean water9	$34.7M
People reached through our major programs and partnerships8,10	272.7M
1 For information on Product Development Partnerships, visit the "Partnership" tab at: www.merckresponsibility.com/focus-areas/access-to-health/research-and-development/home.html 2 We aim to make the majority of our product portfolio available through these partnerships. Total product number will need to be confirmed due to ongoing product rationalization. 3 Data includes new products and new indications. 4 For information on new registrations by region, visit: www.merckresponsibility.com/focus-areas/access-to-health/research-and-development/clinical-research/home.html 5 For information on local regulatory agency GCP/PV training requests, visit: www.merckresponsibility.com/focus-areas/access-to-health/research-and-development/clinical-research/home.html 6 Differential pricing intended to facilitate access for the at-need population. 7 Countries with an MSD trading entity. 8 "Major" is defined as an investment by Merck's Office of Corporate Philanthropy and/or The Merck Company Foundation of more than $300,000 per year and/or an engagement with a national government. 9 Includes investments by Merck’s Office of Corporate Philanthropy and/or The Merck Company Foundation; also includes funding for health system strengthening and capacity building. 10 Includes treatments approved for river blindness and lymphatic filariasis through the Merck MECTIZAN® Donation Program. N/A: Not Available.

	2011
Total greenhouse gas (GHG) emissions (as CO2e) (million metric tons)	2.09
Emissions of volatile organic compounds (VOCs) (metric tons)11	931
Total water usage (billion gallons)	9.2
Hazardous waste generated (metric tons)12	81,000
Hazardous waste recycled	30%
Nonhazardous waste generated (metric tons)13	62,000
Nonhazardous waste recycled	47%
11 Data should be considered an estimate. 12 Includes all waste that requires special handling, as defined by a national, state/provincial or local regulatory agency (e.g., RCRA, special waste, chemical waste, dangerous waste). It also includes petroleum products, pharmaceutical actives/intermediates, medical/biological/infectious materials, or any other materials or compounds that are specially regulated due to the hazard they pose to human health and/or the environment. 13 Data should be considered estimated, because many of these waste streams are not weighed prior to disposal.

	2011
Employees trained on our Code of Conduct14	90%
Substantiated allegations to concerns/issues raised to the Office of Ethics/Ombudsman/AdviceLine	65%
Reported concerns regarding privacy practices, breaches of privacy and losses of personal data that were substantiated15	68%
14 As a result of the merger, data for 2009 & 2010 does not fully reflect a harmonized training process for the combined company. By the end of 2013, we will have the ability to report on global training. 15 "Privacy" concerns include all concerns escalated to the Merck Privacy Office about the company's privacy practices.

Diversity & Inclusion	2011
Women in executive roles (U.S.)16	35%
Women on the Board	17%
Underrepresented ethnic groups on the Board	11%
Underrepresented ethnic groups in the workforce (U.S.)	29%
Well-Being
Employees "engaged" or "fully engaged" (Merck Culture Survey)	49%
Employees who completed health assessment (U.S.)	58%
Overall turnover rate17	14%
Employee Lost-Time Injury Rate (LTIR)18	0.30
Employee Recordable Injury Rate (RIR)19	0.74
Volunteerism
Employees who took release time, according to the global policy on employee volunteerism (estimated)20	8,162
Volunteer hours (estimated)	210,500
16 Executive is defined as one to two levels below the chief executive officer. 17 Overall turnover incorporates all types of turnover, including restructuring. 18 LTIR: Calculated per OSHA methodology. 19 RIR: Calculated per OSHA methodology. 20 Employees are not required to report volunteer hours; metrics are based on self-reported employee data.