Engagement update with Merck & Co on Animal Testing and Packaging

At a recent External Advisory Committee meeting, the committee highlighted increasing numbers of animals being used in animal testing across the pharmaceutical sector. Around the same time, we also received a client query relating to the use of animal derived ingredients in pharmaceutical products. This engagement therefore focused on three material topics for the pharmaceutical industry: animal testing, the use of animal derived ingredients in products, and plastic use.

In its initial response, Merck explained that it makes extensive use of non animal research methods, including in vitro techniques, computer modelling and advanced imaging, prior to or instead of animal studies. The company shared that approximately 96% of its research animals are rodents and confirmed that it maintains detailed records on animal use across species, purpose and site, including research carried out by third party organisations on Merck’s behalf.

As Merck has confirmed that it maintains this data internally, we have encouraged greater transparency through public disclosure. We also encouraged the company to consider setting reduction targets on this topic.

While this response suggests a baseline level of governance and oversight, we believe there is scope for further progress. We have followed up and are awaiting further written responses.We note that some peers, including French pharmaceutical company Sanofi, which is also held in the World Equity Fund, publish the total number of animals used for scientific research on an annual basis. As Merck has confirmed that it maintains this data internally, we have encouraged greater transparency through public disclosure. We also encouraged the company to consider setting reduction targets on this topic.

On animal derived ingredients, Merck highlighted the use of specialised tools to identify potential non animal alternatives, indicating consideration of reduction and substitution where scientifically feasible. On plastics, the company shared that it has developed a long term roadmap aimed at reducing the environmental impact of its packaging, suggesting an acknowledgement of plastics as a material environmental issue within its operations.

Overall, while Merck provided high level information across all three topics, the most detailed discussion related to animal testing, reflecting its materiality to the sector.

Overall, while Merck provided high level information across all three topics, the most detailed discussion related to animal testing, reflecting its materiality to the sector.

Outcome: Our engagement confirmed that Merck has a level of baseline governance on these topics. However, further engagement with the company is required, particularly in relation to transparency and disclosure on the number of animals used in scientific testing.

Written by Ffion Spencer

This article was originally published as part of our Q1 2026 Investment Management Report (IMR).

Information is accurate as at 20.04.2026. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.