Merck China and China Resources Power signed a long-term green power agreement to comprehensively reduce their carbon footprint in production and operation in China

The procurement agreement is for a period of ten years, and the total amount of green electricity purchased reaches300Gigawatt hour（GWh）The full lifecycle traceability of green power products

Merck China significantly increases the proportion of green electricity used in production and operation in China to60%

The purchased green electricity fully covers Merck's three major businesses of pharmaceuticals and health, life sciences, and electronic technology

Merck China announced today its partnership with China Resources Power Holdings Limited (referred to as“China Resources Power”）Sign a ten-year green power procurement agreement（Power Purchase Agreement, PPA）. This is Merck in ChinaLong term green power procurement project, with a total green power purchase of 300 in ten yearsthousandMegawatt hour（GWh）. After the implementation of the agreement, Merck's proportion of green electricity used in production and operation in China will increase to60%, Scope2*Reduce carbon emissions18.510000 tons, further promoting Merck's commitment to sustainable development globally——to2030Year, achieved80%The purchased electricity comes from renewable energy sources; to2040In the year, achieve climate neutrality.

Merck China President He Muqi（Marc Horn）Expressing:

Merck is actively exploring more environmentally sustainable production and operation methods in China. By signing a long-term agreement with China Resources Power, we will further increase the proportion of renewable energy used in China, not only achieving energy conservation and emission reduction in our own operations, but also making positive contributions to China's decarbonization goals. In addition, we are pleasantly surprised by the breadth and depth of business of our partners in the Chinese market. Merck and China Resources Group have previously cooperated in the fields of medicine, health, and life sciences. This time, they have reached an agreement on green power procurement, further consolidating their partnership in the field of sustainable development.

According to the newly signed green power procurement agreement, China Resources Power2024year1Starting from [month], we will provide green electricity to Merck's five production bases and one warehouse located in Jiangsu. Meanwhile,PPAThe transaction process is based on blockchain technology to achieve traceability of the entire lifecycle of renewable energy, ensuring the authenticity of green electricity consumption. After each transaction is completed, Merck China will receive an award from the National Renewable Energy Information Management Center“Green Electronic Certificate”.

China in2021The pilot program for green electricity trading was officially launched in the year, opening up a new mode of green electricity consumption. Since the launch of the pilot work, Merck China has actively participated in green power trading: its pharmaceutical and health production base and life science production base in Nantong have joined the first batch of green power trading in Jiangsu Province;2023In the third quarter of the year, Merck China's electronic technology production base in Shanghai also conducted green power procurement. But these green power transactions are all short-term annual purchases. By signing a ten-year green power procurement agreement with China Resources Power, Merck China will obtain long-term stable green power products to meet the electricity needs of its pharmaceutical and health, life sciences, and electronic technology businesses for production and operation in China“A game of chess”demand

Han Yuewei, Deputy General Manager of China Resources Group, said:

We are honored to further our cooperation with Merck, expanding from pharmaceutical and health, life sciences to new fields of green energy. By providing long-term stable renewable energy power supply, China Resources Power helps Merck achieve low-carbon operation and fulfill its commitment to sustainable development. We are willing to work shoulder to shoulder with Merck to accelerate the pace of technological innovation, drive the construction of a more scalable and resilient renewable energy industry chain, and promote the global energy clean, green, and low-carbon transformation.

Merck China will continue to explore a sustainable development path of green and low-carbon through multiple measures, including certification of green electricity, construction of photovoltaic and wind power facilities in the factory area, and deployment of carbon and energy management systems that can monitor and optimize energy consumption（Carbon & Energy Management System）Take measures to comprehensively build green factories, fulfill Merck's commitment to sustainable development, and help China achieve“carbon peaking and carbon neutrality”Goal.

Merck Group takes concrete actions to2030Annual achievement80%The purchased electricity comes from renewable energy sources.2023year11In the month, Merck signed a virtual power purchase agreement（VPPA）, will be from2025Starting from this year, purchase approximately every year300Gigawatt hours of renewable energy, covering the company's current operations in Europe100%The demand for purchasing electricity. Last year, Merck also announced the signing of a solar project in Liberty County, Texas for a period of time16The renewable energy purchase contract for the year will enable the company to achieve in the United States90%The purchase of electricity comes from renewable energy sources. As one of the global sustainability commitments, Merck Group is committed to2040Achieving climate neutrality annually.