Engagement update with Merck & Co on diversity and access

As part of a co-ordinated investor engagement with the pharmaceutical industry, we contacted the US pharma firm Merck to understand how the company is responding to recent announcements from the US administration on diversity and public health issues.

With the launch of our World Equity Fund, we have been working to ensure that we can continue to vote and engage with companies in new markets. US businesses account for a significant proportion of the World Equity Fund’s holdings and to support our engagement efforts in the United States, we have joined an organisation called the Interfaith Center for Corporate Responsibility (ICCR), a coalition of over 300 institutional investors representing $4 trillion in assets.

ICCR co-ordinates investor engagements, primarily in the US, and invited us to join a project with the pharmaceutical sector. The aim of the project is to encourage pharmaceutical firms to retain commitments to diversity, equity and inclusion (DEI) despite the criticism such initiatives have received in recent months. In addition, the engagement asked companies to explain how they will continue to channel products to underserved communities, particularly where usual conduits such as USAID have undergone funding cuts.

The engagement asked companies to explain how they will continue to channel products to underserved communities.

Our role in the engagement was to contact Merck, and ask for their perspective on these issues.

On DEI, Merck was keen to highlight its track record in – and continued support for - ensuring that its clinical trials are accessible to under- represented communities. It cited a number of trial sites that are situated within marginalised communities in the US, thereby facilitating easier access for participants. Merck’s response went on to reference a number of industry-led initiatives that the company is supporting to ensure the diversity of clinical trial participants.

Next, we asked about Merck’s intentions to continue its distribution of pharmaceuticals in developing economies and under-served communities. Again, the company was keen to highlight the longstanding partners and projects that it supports to widen access to medicines. The company cited, for example, a partnership with the Gates Foundation on phase 3 clinical trials for HIV medicines, including a dedicated trial for women and girls in Sub-Saharan Africa. In addition, Merck pointed out its role as a key supplier of HPV vaccine to the Gavi initiative and its work with UNICEF to maintain an Ebola vaccine stockpile. Merck also outlined some of its domestic access programmes in the US, to provide access to medicines to those without health insurance coverage.

In its response to us, Merck went on to explain that the company remains committed to working with officials within local and national government structures to ensure that the company can continue to meet patients’ needs, and that the company also works via industry bodies to advance its goals in this area.

Outcome: The interaction with Merck has given us an insight into how the company is navigating the impact of the US administration’s decision-making on issues like DEI, domestic healthcare and overseas aid. It has been reassuring to hear directly from the company that their commitments in this area have not diminished. The engagement has also been a great opportunity to work with our new partners at ICCR and better understand how stewardship works in practice in the US market.

Written by Ita McMahon

Information is accurate as at 07.11.2025. 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.