Merck Issues $1 Billion Inaugural Sustainability Bond - Smart Energy Decisions

GHG Emissions, Hydro, Solar, Sourcing Renewables, Wind  -  December 13, 2021

Merck Issues $1 Billion Inaugural Sustainability Bond

Merck, known as MSD outside the U.S. and Canada, announced its inaugural issuance of a $1 billion sustainability bond, which was part of an $8 billion underwritten public offering of notes that closed on Dec. 10, 2021.

Merck intends to use the net proceeds from this bond offering to support projects and partnerships in the company’s priority ESG areas and contribute to the advancement of the United Nations Sustainability Development Goals. These company projects and partnerships include:

  • Renewable energy generation projects such as new onsite or offsite solar or wind generating capacity, as well as electricity generated from renewable sources
  • Energy efficiency expenditures related to the company’s operations, such as energy-efficient heating, ventilation, air conditioning, refrigeration, lighting, roofing or electrical equipment, energy monitoring, control solutions, and energy assessments, including smart meters and control automation devices
  • Green buildings, including the design, development, construction, and certification costs for new/existing facilities to meet LEED Gold or Platinum standards (or equivalent), as well as those which achieve at least a 30% improvement in energy use or GHG emissions
  • Sustainable water and wastewater management to improve water quality or water efficiency, such as wastewater treatment, recycling and harvesting, overall reductions, and reuse
  • Pollution prevention and control projects to reduce and manage emissions to air or water, as well as recycling projects and efforts to divert non-hazardous and/or hazardous waste away from landfills

“Today’s announcement is an important step to further integrate ESG into the core of our business, accelerate the achievement of our ESG goals, and measure and continue to be transparent about our progress,” said Caroline Litchfield, CFO of Merck, in a statement.

Merck has committed to annual reporting on the allocation of bond net proceeds to actual spend by social and/or environmental category, along with the remaining balance of unallocated proceeds. Where feasible, Merck will report estimated social and/or environmental quantitative impact metrics and provide qualitative case studies on eligible projects. For eligible social projects, Merck will seek to report impact metrics by target population to show how expenditures are enhancing access to the stated target population.

 

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