THE POWER
OF MOMENTUM

2023 SUSTAINABILITY REPORTTable of Contents
Chairman and CEO’s Letter  .  .  .  .  .  .  .  .  .  .  .  .  . 3

Product Lifecycle and Packaging  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .19Recycling  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .19

Leadership Perspectives  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4

ISO Certified Management Systems
for Environment, Energy, and  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .20

Corporate Overview  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5Our Company  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .5

Strengthening Communities .  .  .  .  .  .  .  .  .  .  .  . 21

Our Visions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .5

Health, Safety, and Wellbeing  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .21

Our Values  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .5

Diversity, Equity, and Inclusion  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .23

Our Products and Services  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .5

Employee Engagement and Development  .  .  .  .  .  .  .  .  .24

Our Scale and Geographic Footprint  .  .  .  .  .  .  .  .  .  .  .  .  .  .6

Philanthropy  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .25

Key Figures at a Glance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .7
Our Approach to Sustainability  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .8
Our 2030 Goals and Progress  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .9
Sustainability Oversight and Governance  .  .  .  .  .  .  .  .  .10Materiality Assessment  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .12

Creating Value  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 26
Board Overview  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .26Enterprise Risk Management  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .27Compliance and Ethics  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .27Affordability & Pricing .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .28

Caring for the Planet  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13

Supply Chain Management  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .29

Addressing Climate Risks & Opportunities  .  .  .  .  .  .  .  .13

Quality Assurance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .29

Scenario Assumptions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .142023 Direct Suppliers in Numbers  .  .  .  .  .  .  .  .  .  .  .  .  .  .32

Climate-Related Risks at Merit  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .14

Awards & Recognition .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .34

Climate-Related Opportunities for Merit  .  .  .  .  .  .  .  .  .  .15Energy  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .16

Report Parameters  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 35

Energy Use and GHG Emissions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .16Renewable Energy  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .17Water  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .18

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORTGRI Index  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 36
SASB Index  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 38

2

Chairman andCEO’s Letter
At Merit Medical, our priority is to save lives. This has been our
purpose for more than three decades, and every year, as we strive
to improve and move forward, we gain the power of momentum.
This momentum is a powerful tool that allows us to deliver
innovative quality products and technology for our customers,
creating improved outcomes for patients and families.
As a team, we are committed to driving momentum throughout
the organization to include responsible growth for shareholders,customers, team members, and suppliers. We are uniﬁed by ourcore mission to understand, innovate, and deliver. This mission
shapes our culture, guides our approach to business, encourages
our outreach in the community, and inspires our commitment
to sustainability and environmental stewardship.
In 2023, Merit completed our third year of progress toward
our 2030 Operational Sustainability Goals. We are seeing
more evidence of momentum as we consistently reach and

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

surpass each of our targets for energy, water, and greenhousegas emissions. Our sustainability program drives operational
improvements by reducing carbon emissions through energy
eﬃciency and utilizing renewable energy, as well as reducing
water use and waste generation across Merit facilities.
I am proud of our organization’s signiﬁcant accomplishments
last year. I am conﬁdent that Merit will continue to demonstrate
how sustainable business practices enable superior solutions forour customers and contribute to the power of momentum for
decades to come.

Fred P. Lampropoulos
Founder, Chairman, and CEO

3

Leadership Perspectives
Merit Medical key leaders speak to the value of the company’s sustainability program and highlight some recent achievements.

“Progress made on our 2030

“The collective capabilities and“We have an unwavering commitment“We are proud to share our 2023

sustainability goals demonstrates

performance of our talented workforce

to sustainable and responsible quality

annual sustainability report andour drive for operational excellence.

is a key source of competitive

assurance practices. In 2023, Meritupdated disclosures that include theWe’re accelerating our commitment

advantage for Merit, and ourcontinued to ensure that global

ﬁnancial impact of climate change toto environmental stewardship andpeople strategy is fundamental

harmonization of processes supported

our organization. We have identiﬁed

improving the resilience of ourto sustaining our company. We

our strong enterprise-wide quality

risks and opportunities as webusiness through the maturity ofunderstand that the creation ofculture and strategy.”

innovate to respond to our changing

our systems.”

value over the long term depends

world and do our part to address ouron our ability to identify, attract,

Kim Ruzek

Neil Peterson

develop, motivate, and retain a

Senior Vice President,

Chief Operating Oﬃcerhighly skilled, diverse workforce.”

Global Quality Assurancerole as a global organization.”

Alisha Jerauld
Vice President,

Mike Voigt

Environment, Social & Governance

Chief Human Resources Oﬃcer

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4

Corporate Overview
Merit Medical Systems, Inc. is a global leader in healthcare technology. We are committed to creating better patient outcomesthrough innovation that treats complex clinical challenges, offering real-world solutions to help advance the care physicians
provide.

Our Company

Our Values

Merit was founded in 1987 by Fred P. Lampropoulos, Kent W. Stanger, Darla Gill, andWilliam Padilla. Initially, we focused our operations on injection and insert molding ofplastics. Our ﬁrst product was a specialized control syringe used to inject contrast solution
into a patient’s arteries for a diagnostic cardiac procedure called an angiogram. Since
that time, our products and product lines have expanded substantially through internal
research and development projects and by strategic acquisitions.

We believe long-term value is only created for our patients, employees, shareholders, andcommunities when we are outwardly focused and determined to deliver an exceptionalcustomer experience. When our focus is aligned with customer interests, we build loyalty,
trust, and lasting value for future generations.

Our Vision
Our vision is to be the most customer-focused company in healthcare. We make adiﬀerence by understanding physician needs and innovating and delivering a diverse rangeof products that improve the lives of people, families, and communities worldwide.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORTOur Products and Services
We are a leading manufacturer and marketer of proprietary medical devices used ininterventional, diagnostic, and therapeutic procedures, particularly in cardiology,
radiology, oncology, critical care, and endoscopy.

5

Our Scale andGeographic Footprint
We serve client hospitals with a domestic
and international sales force and clinicalsupport team. Our world headquarters is
in Salt Lake City, Utah, with our principal
oﬃce for European operations located in
Galway, Ireland, and our principal oﬃce for
Asian distribution in Beijing, China. We
also support our European operations froma distribution and customer service facility
located in Maastricht, the Netherlands.

Approximate Manufacturing, Commercial, Distribution, and Research Space

1.9

1.0

0.9

MILLION FT2MILLION FT2MILLION FT2

TOTAL

OWNED

LEASEDIn addition, we lease commercial space inIndia, Hong Kong, Italy, Dubai, Australia,
Canada, Brazil, Malaysia, South Korea,
Japan, South Africa, Singapore, Great Britain,
Vietnam, Taiwan, New Zealand, Indonesia,
and France as well as in California and Texas.
Our major manufacturing and packaging
facilities are in Utah, Virginia, Texas, Ireland,Brazil, France, Singapore, Mexico, and theNetherlands.
Our research and development activities are
conducted mainly at facilities located in Utah,
California, Texas, Ireland, and France. Our
total manufacturing, commercial, distribution,and research space is approximately 1.9
million ft2, of which approximately 1.0 million
ft2 are owned, and 0.9 million ft2 are leased.

GLOBAL HEADQUARTERS
PRINCIPAL OFFICE FOR EUROPEAN OPERATIONSPRINCIPAL OFFICE FOR ASIA PACIFIC DISTRIBUTION
DISTRIBUTION AND CUSTOMER SERVICE FACILITY
MANUFACTURING AND PACKAGING FACILITIESRESEARCH AND DEVELOPMENT

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6

Key Figures at a Glance
UNIT

2023

2022

2021

20201
(baseline year)

Net Sales$ Thousands

1,257,366

1,150,981

1,074,751

963,875

Gross Proﬁt$ Thousands

583,872

519,099

485,333

401,777

Net Income (loss)$ Thousands

94,411

74,51648,454(9,843)Operating Cash Flow

$ Thousands

145,151

114,291

147,231

165,270

Capital Expenditures for Property & Equipment$ Thousands

34,29045,02927,93945,988

GJ = gigajoules

Free Cash Flow3$ Thousands

110,861

69,262

119,292

119,282

MT CO2e = metric tons carbon dioxide equivalentLong-Term Debt

$ Thousands

823,013

186,759

234,397343,722m3 = cubic meter

Equity$ Thousands

1,202,000

1,144,397

1,039,799

958,575

m3/$KRev = cubic meter per thousand dollars of revenue earned

ECONOMY2
Revenues

GJ/$KRev = gigajoules per thousand dollars of revenue earned

ENVIRONMENT

MT/$KRev = metric ton per thousand dollars of revenue earned

4

Total Energy Consumption

GJ

273,118

269,717265,455

260,373

Percentage Energy from Renewable Sources

%

36

26

20

5

Total Greenhouse Gas (GHG) Emissions5

MT CO2e17,656

17,23919,15020,897

Total Water Withdrawal6

m3

251,937

242,274

243,553

233,826

Water Intensity

m3/$KRev

0.20040.21050.22640.2426

Energy Intensity

GJ/$KRev

0.2172

0.23430.24700.2701GHG Emissions Intensity

MT/$KRev

0.01400.01500.01780.02171.

During 2023, Merit adjusted its 2020 baseline toincorporate data that had previously been omitted forsome of its sales and distribution organizations.

2.

Figures taken from Merit’s 10-K, ﬁled with the Securities
and Exchange Commission (SEC) on February 28, 2024.

3.

Free cash ﬂow is a non-Generally Accepted Accounting
Principles (GAAP) metric deﬁned as cash ﬂow fromoperations calculated in accordance with GAAP lesscapital expenditures for property and equipment
calculated in accordance with GAAP.

4.

Environmental data are based on eight manufacturinglocations and seven sales/distribution centers.

5.

Total GHG emissions for scope one and scope two.

6.

Total water withdrawal in 2020 was restated in 2021
due to the addition of certain distribution centers thatwere added into the environmental tracking data for the
corporation.

7.

According to North American Industry Classiﬁcation
System (NAICS) for Medical Equipment and Supplies
Manufacturing: NAICS Industry 33910.

SOCIETY
Regular Full-Time Associates

6,950

6,532

6,692

6,096

US-Based Associates

2,796

2,770

2,926

2,925

Non-US Associates

4,154

4,087

3,766

3,171

0.8

0.7

0.8

1.1

1.6

1.5

1.6

1.8

0

0

0

0

Total Recordable Incident Rate (TRIR)
Medical Equipment & Supplies Manufacturing
TRIR Industry Average7
Fatal Work-Related Accidents

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7

Our Approach to Sustainability
As a global leader of healthcare technology, Merit Medical has a signiﬁcant role to play incontributing to a sustainable future. Driven by a desire to make a diﬀerence in the world,
our sustainability priorities are critical to our overall success and to our relationships withstakeholders. We understand the long-term health of our customers, patients, team members,
and communities relies on a more sustainable, healthier, and equitable world.
Merit’s corporate sustainability strategy focuses on adding business value by assessing therisks and opportunities associated with our insights from stakeholder input and industrytrend analysis. In 2022, we engaged a third party to help us complete a comprehensive
materiality assessment. In addition, in 2023, we conducted workshops within ourorganization in accordance with the Task Force on Climate-Related Financial Disclosures(TCFD) to better understand Merit’s risks and opportunities related to climate change.

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Utilizing the insights from our materiality assessment, TCFD workshops, and theoutcomes from our enterprise risk management program, we have identiﬁed opportunities
to enhance our business.
Our vision is for sustainability to be understood and adopted at every level of ourbusiness. By investing in employee education and training, sustainability can advance aswell as be prioritized and driven by every team member. An annual sustainability report isan important part of this journey. To demonstrate commitment and transparency aroundour strategy and performance, this report has been prepared using Global Reporting
Initiative (GRI), Sustainability Accounting Standards Board (SASB), and TCFD
reporting standards.

82030 Water Goal

Our 2030 Goals and Progress
The following 2030 operational sustainability targets provide focus across Merit Medical. They are approved by the Merit Board of
Directors and overseen by the Corporate Sustainability Council.

Decrease water intensity by
10% from the 2020 baseline year,
indexed to revenue .

2030 Energy Goals

2030 GOAL

2023 RESULT

2022 RESULT

2021 RESULT

Energy from renewable/carbon-free Sources

50% renewable sources

31% increase

21% increase

15% increase

Energy Intensity

10% decrease

20% decrease

13% decrease

8% decrease

GHG Emissions Intensity (scope 1 and 2)

15% decrease

35% decrease

31% decrease

18% decrease

Water Intensity

10% decrease

17% decrease

13% decrease

7% decrease

These targets are measured against the baseline year of 2020. We adjust this baseline for changes in our portfolio, assessment
methods, and boundary deﬁnitions to provide consistent measurement of our progress.

Performance Trends and Drivers

Decrease energy intensity by
10% from the 2020 baseline year,
indexed to revenue . Increase theproportion of Merit’s energy fromrenewable sources to 50%
of total usage .

We saw an improvement in 2023 for all of our 2030 operational sustainability goals. GHG intensity improvement was driven by
our overall increase in using renewable and carbon-free energy sources, such as wind, solar, hydroelectric, and nuclear energy. Water
intensity improvement during 2023 was driven by water-reduction and eﬃciency projects, such as xeriscaping and installing waterrecirculation systems at our largest site in Salt Lake City, Utah. The reduction in our energy intensity is a combination of energy
eﬃciency projects at our manufacturing sites along with a steady increase of revenue in each year since 2020.
In 2023, we enhanced our methodology and data processing for scope 1 and scope 2 energy and emissions data. We worked with athird party to verify our data for energy and GHG emissions for 2020 through 2023. This resulted in more accurate baseline andadjustments to our 2020 baseline and subsequent years’ performance.

2030 GHG Emission Goal

Decrease GHG emissions
intensity by 15% from the 2020
baseline year, indexed to revenue .

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9

Sustainability Oversight and Governance

Board of Directors

Making progress in sustainability is vital for the success of ouroverall business strategy. As such, it is important that we dedicate
the right resources to oversee, manage, and promote our relevant
initiatives. Two key groups are dedicated to sustainability within
our corporate governance structure.

Board of Directors
Merit Medical’s Board of Directors is the highest governancebody within our organization. Nine of its ten members are
independent or “non-executive.” Fred Lampropoulos serves as thechief executive oﬃcer of the company and chairman of the board.
Explore the committees our board members serve.

Fred Lampropoulos

F. Ann Millner

Lonny J. Carpenter

President
Chief Executive Officer
Chairman of the Board

Lead Independent Director

Director

David K. Floyd

Thomas J. Gunderson

Laura S. Kaiser

Michael R. McDonnell

Director

Director

Director

Director

Sylvia M. Perez

Lynne N. Ward

Director

Director

Rear Admiral,
US Navy (retired)

Stephen C. Evans
Director

Governance and Sustainability Committee
Our sustainability eﬀorts are guided by the Governance andSustainability Committee of our board of directors, comprising
ﬁve independent directors and chaired by David K. Floyd.
Our Governance and Sustainability Committee is responsible forthe oversight of Merit’s reports to promote business operations
that encourage environmental and social consciousness, including
climate-related issues, sustainability initiatives, the environment,
and other social topics. The committee also oversees the Corporate
Sustainability Council and communicates the ﬁndings of bothgroups with the full board on a quarterly basis.

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10

Corporate Sustainability Council
Our Corporate Sustainability Council is sponsored by Chief Operating Oﬃcer Neil Peterson and chaired by Vice President of Environment, Social &Governance (ESG) Alisha Jerauld. The council comprises senior representatives from Merit Medical’s global divisions and key functions.
Members direct the development of the Corporate Sustainability program and cultivate a common framework for it, ensuring strategic alignment among thedivisions, functions, and executive team.

Neil Peterson

Alisha Jerauld

JoAnne Alkire

Jennifer Allan

Ricardo Alvarez

Mark Butler

Sarah Comstock

Chief Operating Officer
Executive Sponsor

Vice President
Environment, Social &Governance, Council Chair

Executive Vice President
Global Marketing& Strategy

Director
Enterprise Risk Management

Managing Director
Operations
Merit Medical Tijuana

Executive Vice President
Merit Medical EMEA

Vice President
Global Communications

William WrightGeorge Frioux

David Lewis

Jim Mottola

Jason Reber

Rick Russell

Mike Voigt

Managing Director
Operations

Vice President
Global Real Estate & Facilities

Chief Compliance Officer

Executive Vice President
Global Research &Development

Vice President
Operations

President
Sensors

Chief Human Resources
Officer

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11

Working with an external consultancy, we identiﬁed a listof topics informed by voluntary disclosure standards andframeworks, leading sustainability-rating agencies, andinvestor priorities.
The importance of each issue identiﬁed during the researchphase was then validated through a stakeholder-engagement
process with key internal and external stakeholders. Surveys
were completed by ﬁfty-eight senior Merit employees as wellas key customers.
By undertaking this exercise, we now have a better
understanding of the key sustainability issues that matter toour stakeholders. With that information, we can focus our
strategy and commitments on those areas we believe will
have a greater positive impact across our value chain.
Our materiality matrix shows the key topics we identiﬁed as
being important to both internal and external stakeholders.
Our areas of focus will be those of high priority forboth groups.

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Board
Composition

Climate Change& GHG Emissions(degree of stakeholder concern)

Material sustainability issues are those we believe could havean impact, either positive or negative, on our business modeland value drivers, such as revenue growth, margins, required
capital, or risk.

External Stakeholder Perspective

To identify and understand the most critical elements ofour sustainability proﬁle, we conducted a comprehensive
materiality assessment in 2022.

Increasing
Importance

2022 Materiality Assessment

Product
Quality & Safety
Supply Chain
Management

Environmental
Impact of Products& Services

Ethical Marketing

Environmental
Management
Diversity, Equity& Inclusion

Affordability& Pricing

Employee Engagement,
Well-Being & Retention
Energy Management& Usage

Board Oversightof Sustainability

Business
Ethics/Code of
Conduct

Employee
Recruitment,
Training &Development

Risk Management
Water Management& UsageAccess to Healthcare

Waste Management

Internal Business Perspective(impact on business)

Increasing
ImportanceTop 6 Material Topics
Product Quality & Safety

Business Ethics/Code of Conduct

Ethical Marketing

Employee Engagement, Well-Being& Retention

Supply Chain Management

Board Composition

12

Caring for the Planet
We are committed to reducing the environmental footprint of our organization because it is beneficial to our business and to
our stakeholders, both now and in the future. We care about being responsible and minimizing the long-term impact we may
have on future generations. Our focus on environmental improvements also makes business sense, leading to efficiencies and,ultimately, financial savings.
We acknowledge the scientiﬁc evidence presented by the Intergovernmental Panel on
Climate Change (IPCC) concerning the need to limit the global average temperature
increase to avoid the catastrophic eﬀects of climate change. We also recognize that climatechange provides risks and opportunities for Merit Medical as a global organization.
We are mindful of the eﬀect our business activities have. Our single-use medical devices playa signiﬁcant role in patient safety and outcomes, but even when disposed of properly, they
have an impact on the environment.

Addressing Climate Risks & Opportunities
As a part of our Enterprise Risk Management program, climate-related risk and opportunity
drivers are key considerations for our long-term success and resiliency as a leader in the
medical technology industry. We believe it is our responsibility to understand and actively

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

address how those drivers will aﬀect our business. Our assessment process identiﬁes key
physical and transitional drivers qualitatively in the short, medium, and long term.
Drivers are categorical risks and opportunities that are manifested via speciﬁc climate-relatedrisks. We use three time horizons when assessing climate-related risks and opportunities:
short term (1–3 years), medium-term (4–10 years), and long-term (beyond 10 years). Basedon our assessment of plausible global economic, social, and environmental scenarios, we
assess physical climate-related drivers in the long term, while transitional drivers are assessedover the short to medium term.
We have taken a qualitative approach to analyzing the ﬁnancial and strategic impacts ofrelevant climate-related risks and opportunities to our business. Our process is to evaluate
the likelihood and impact of risks and opportunities that a climate-focused set of drivers
presents to the corporation.

13

Scenario Assumptions
Below 2°C Scenario
Merit will likely face increasing physical climate risks now through 2050 because of the locked-in eﬀects frompast global greenhouse gas (GHG) emissions. Many physical climate impacts may continue to increase and thenplateau toward mid-century. Global average temperatures may slowly begin to decline after mid-century because ofstringent, near-term regulation and policy to decarbonize globally.
Such transition eﬀorts will likely increase the cost of doing business and may impact the aﬀordability of our products aswell as others in our industry. Taking action to decarbonize may result in opportunities for a competitive advantage.

Above 2°C Scenario
Merit will likely face increasing physical climate risks now until well beyond 2050 with a low likelihood ofplateau or decline through 2100. New climate policy or regulation is possible after 2050 in reaction to physicalchange. Customer needs are likely to shift only minimally in the near term related to eﬃciency and lifecycle carbon
due to limited pressure from government regulatory policy.

Climate-Related Risks at Merit
Physical Risks
We have operations in geographic areas prone to climate-related risks, such as in Tijuana, Mexico; Salt Lake
City, Utah; and Pearland, Texas. To date, there have been minimal physical property damage from natural
disasters at these locations. Furthermore, during our scenario analysis, it was determined that rising sea levels
would not have a signiﬁcant impact on any of our operating locations worldwide. However, changing weather
patterns could increase drought or severe storms at some of our global locations. We could incur signiﬁcant
costs to improve the resiliency of our infrastructure and supply chain and otherwise prepare for, respond to,and mitigate the eﬀects of climate change.

Transition Risks
We may see costs rise, such as within energy or materials, because of policies aﬀecting other sectors of the economy.
Scarcity and GHG-based costs are expected to drive up the price of materials globally. As externalities are factored
into product costs in the form of carbon pricing, Merit may see costs rise throughout the supply chain. Althoughmost of these increased costs may be recoverable through pricing, we may be less competitive in the future, resulting
in lower demand from our customers.

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14

Future laws, regulations, or policies in response to concerns over GHG emissions—including carbon taxes,
mandatory reporting and disclosure obligations, and changes in procurement policies—could signiﬁcantly increase
our direct and indirect operational and compliance burdens and costs. In the long term, we expect placing a priceon carbon will be a key driver toward integrating climate-related costs into market supply and demand. In addition,
climate change-related litigation and investigations have increased in recent years. Any claims or investigations
against us could be costly to defend, and our business could be adversely aﬀected by the outcome.

Climate-Related Opportunities for Merit
Physical Opportunities
Opportunity exists to eﬃciently recover operations from a natural disaster or climate-related event ahead of ourcompetitors. Merit’s Business Continuity and Crisis Management System (BCMS) establishes a strategic frameworkthat directs prompt mobilization of resources to protect employees and assets prior to, during, and after an emergency.
Under the direction of our Enterprise Risk Management program, our BCMS teams conduct tabletop exercises andtesting of systems to measure the readiness of mitigating scenarios in the face of an actual event.
Capital expenditures (CAPEX) to mitigate physical climate-change risks, such as drought or severe storms, could
present a competitive advantage. Merit has invested CAPEX over the past three years at our drought vulnerable
operations to conserve and store water, as well as at facilities where solar power may create an advantage if there are
power disruptions. Additional CAPEX investments at sites to mitigate risk from changing weather patterns may
provide additional competitive advantages over our peers.

Transitional Opportunities
Merit can design, develop, and innovate medical technology to address climate-related concerns. This includes
the replacement of certain product inputs to create a competitive advantage by addressing changing customer
expectations before our peers.
Staying ahead of future laws, regulations, or policies in response to concerns over GHG emissions andenvironmental strategy and performance could result in access to capital at reduced interest rates or in investor
interest. Merit currently tracks and reports on energy eﬃciency and GHG emissions and has shown steady
performance improvements since 2020.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

15

Energy
Our 2030 Operational Sustainability Targets demonstrate our commitment to reducing
our environmental impact. Our approach is based on making sound decisions, leveraging
our culture of innovation and continuous improvement to move beyond the status quo, andconsidering how we can do things diﬀerently. We engage with our employees, customers,
and suppliers to understand how we can evolve our manufacturing and distribution of
products to achieve better results.

3,072

14,584

These emissions include stationary
combustion from company-managed andcompany-operated facilities over 10,000 ft2 aswell as facility vehicle usage.

These emissions include purchased nonrenewable energy at our global operation sitesof more than 10,000 ft2.

273,1180.2172

Energy includes purchased electricity and fuelsconsumed by Merit-managed and operated
sites of more than 10,000 ft2.

We used 0.2172 GJ of energy forevery thousand dollars of revenue
earned in 2023.

0.014036%

MT CO2e
Scope 1 Emissions

MT CO2e
Scope 2 Emissions

Energy Use and GHG Emissions
As a manufacturer, energy is a signiﬁcant resource we require across our global operations,and GHG emissions can be a negative consequence. We recognize the need to address
climate change and the emissions that contribute to it; therefore, energy eﬃciency andconservation are key areas of focus for our business. We have made long-term commitments
to reduce our energy usage and emissions as well as increase the use of renewable andcarbon-free energy companywide.
By 2030, we have committed to decreasing our energy intensity, measured in gigajoules (GJ)
per thousand dollars of revenue ($KRev), by 10% or more. We also planned to decrease our2030 GHG emissions intensity by 15% from our baseline year of 2020. We are pleased toreport that we have met and exceeded these goals.
In comparison to our 2020 baseline year, we have experienced a 20% total decrease in ourenergy intensity. Due to our increased usage of renewable and carbon-free energy over the past
three years, we achieved a 35% total decrease in scopes 1 and 2 GHG emissions intensity.
During 2023, our total energy usage was 273,118 GJ compared to 260,373 GJ in our2020 baseline year. Our 2023 energy intensity was 0.2172 GJ/$KRev compared to 0.2701
GJ/$KRev in 2020.
Our 2023 scope 1 GHG emissions were 3,072 metric tons (MT) of carbon dioxide
equivalent (CO2e) compared to 2020 scope 1 emissions of 3,101 MT of CO2e. Scope 2
emissions during 2023 were 14,584 MT compared to 17,795 MT in our 2020 baseline
year. Total GHG emissions intensity in 2023 was 0.0140 MT of CO2e/$KRev
compared to 0.0217 MT of CO2e/$KRev in 2020.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORTGJ Energy
Consumed

MT CO2e

GHG Emissions Intensity
We emitted 0.0140 MT of CO2e
for every thousand dollars of revenue
earned in 2023.

GJ/$KRev
Energy Intensity

Energy from Renewable
and Carbon-Free Sources
We sourced 36% of our total energy
consumed from renewable and carbon-freesources in 2023.

By 2030, we have committed to decreasing ourenergy intensity (GJ revenue) by 10% or more anddecreasing our 2030 GHG emissions intensity by
15% from our baseline year of 2020.

16

In 2023, 36% of Merit’s totalenergy usage came fromrenewable and carbon-freesources compared to 5% of
total energy from renewable
and carbon-free sources inour 2020 baseline year.

In addition to our focus on using energy eﬃciently within our facilities, we have also implemented programs that help
to reduce emissions from transportation. At our facilities in Salt Lake City, Utah; Galway, Ireland; and Paris, France,
we promote the usage of electric vehicles by providing employees with on-site, electric vehicle charging stations.
At our facility in Tijuana, Mexico, we operate our employee transportation program to reduce emissions andencourage employee safety. We contract twenty-one fuel-eﬃient buses to transport over 2,000 employees toand from the facility each workday. These buses provide safe, eﬃcient, and comfortable transportation for our
employees in Tijuana.

ISO 50001 Energy Management System
Using energy eﬃciently is an important part of our strategy at all our operating sites. We have worked to certify
some of our manufacturing sites to ISO 50001 and seek to continually improve our energy management system.
Currently, our sites located in Salt Lake City, Utah; Galway, Ireland; Venlo, the Netherlands; and Paris, France, holdISO 50001 certiﬁcations. To date, 50% of our manufacturing sites are ISO 50001 certiﬁed.

Renewable Energy
Growing our use of renewable and carbon-free energy is an important part of our long-term climate change strategy.
We have committed to purchasing 50% of our total energy from renewable and carbon-free sources by 2030.
Procuring more renewable and carbon-free energy also contributes to our emissions-reduction goal.
In 2023, 36% of Merit’s total energy usage came from renewable and carbon-free sources compared to 5% of
total energy from renewable and carbon-free sources in our 2020 baseline year. We are actively engaging with ourenergy providers to purchase more renewable and carbon-free energy where possible and have paid a premium todo so at several sites. In 2023, our distribution site located in Melbourne, Australia, has utilized renewable energy
derived from on-site solar panels. In 2024, we approved the installation of solar panels at our distribution site in
Johannesburg, South Africa.
In 2024, we also plan to continue purchasing more renewable and carbon-free energy and explore opportunities toinstall solar panels. In addition, we are investigating the potential of carbon-oﬀset credits, given the large amount ofenergy required by our operations.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

17

Water
Water is one of our key environmental challenges and opportunities, and it is a resource we have committed to using
more eﬃciently. We have worked to understand the impact of water use at each of our operating facilities and toenact programs that improve water eﬃciency. Goals and initiatives are addressed at the site level by understanding
local/regional water basin activity and stress.

Our water intensity
decreased by 17% comparedto our 2020 baseline year
due to our investments inwater-efficiency initiatives.

Our 2030 Operational Sustainability goals include a 10% reduction in water withdrawal per dollar of revenue
earned. During 2023, our total global water withdrawal at sites more than 10,000 ft2 in size was 251,937 m3,
an increase of 18,111 m3 from our 2020 baseline year of 233,826 m3. Due to our investments in water eﬃciency
initiatives and overall increase in our revenues, our water intensity decreased by 17% compared to our 2020
baseline year.
At our sites with intensive water use, we have undertaken projects to recirculate water where possible . We have
had two successful projects of this nature at Salt Lake City in 2022, a cooling-water recirculation project and aprocess-water recirculation project within our sensor operations . We are presently pursuing a similar project at
our facility in Tijuana, Mexico, our second largest site for water consumption and one where water scarcity riskhas been identified.

Water issues vary signiﬁcantly depending on the operating location. In 2023, we utilized the Water Risk Filter
provided in collaboration between the World Wildlife Fund for Nature (WWF) and KFW DEG to understandbasin water risk at our operating locations. We have identiﬁed three manufacturing locations (Tijuana, Mexico; Salt
Lake City, Utah; and Pearland, Texas) as water-stressed sites. The methodology disclosure for the Water Risk Filter
notes: “The logic that underpins the water risk assessment is to evaluate average, recent water risk conditions, as well
as some level of future risk.”
The following table summarizes Merit-operating sites located in identiﬁed water-stressed regions:

Water
Depletion*

Baseline
Water Stress*

Available
Water
Remaining*

Drought
Frequency
Probability*

Site

Country

River Basin

Tijuana

MexicoTijuana

4

5

4

4

Salt Lake City

USA

Great Salt Lake

3

2

5

4

Pearland

USA

Texas

3

3

2

3

* Assessed risk from 1 (very limited risk) to 5 (very high risk)

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

18

Product Lifecycle and Packaging
The single-use medical devices we create cannot be recycled due to patient safety and outcomes risk. Therefore, we
prioritize ﬁnding ways to reduce the impact of their production and distribution.
As discussed in the above energy and water sections and in line with our 2030 goals, we are actively working to
reduce the energy and water associated with the production of each device. The materials used in our devices are also
under review as we try to ﬁnd more eco-friendly alternatives or to improve their recyclability.

During 2023,
we recorded savingsof approximately
146,000 lb in eliminatedmaterials, includingboxes and film.

In 2021, we began a multi-year project within our Merit Smart Shipping initiative to
reduce unnecessary packaging associated with our products by assessing how they areordered and used by our customers. In the second full year of this project, we continue
to see strong results. During 2023, we recorded savings of approximately 146,000 lb
in eliminated materials, including boxes and ﬁlm. In total, since its inception, ourmaterial savings have resulting in 600,000 lb of packaging materials eliminated. Today,
our customers can spot products that have undergone packaging and packaging-wasteeliminations by seeing our red Merit Smart Shipping symbol on the box.
Our eWORQ program makes a big diﬀerence in paper reduction. Transitioning work orders from paper to our
digital system, eWORQ has saved 2,569,710 pieces of paper in 2023 alone. Currently, this digital work-order system
is in place at our manufacturing facilities located in Salt Lake City, Utah; Galway, Ireland; and Tijuana, Mexico. In
2024, we are planning to roll eWORQ out to manufacturing facilities in Pearland, Texas; and Richmond, Virginia.

Recycling
During 2023, ourglobal manufacturing
facilities recycled
more than 2,500 MTof waste produced byour operations.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

Although we see reducing the amount of waste we generate as our main focus and recycling as a secondary area of
focus, we strive to reduce the impact of production on the communities we serve by recycling corrugated materials,
plastics, metals, pallets, and motor oil.
During 2023, our global manufacturing facilities recycled approximately 2,500 MT of waste produced byour operations.
We strive to utilize reusable plastic totes and pallets for intercompany shipping of components and products.
Across our intercompany and customer shipping, our Merit Smart Shipping program evaluates and enhances our
system to reduce the materials we use, saving more than 100 MT of corrugated boxes and plastic bubble wrap
materials per year.

19ISO Certified Management Systems forEnvironment, Energy, and Occupational
Health & Safety
These ISO certiﬁcations for Environment (14001), Energy (50001),
and Occupational Health and Safety (45001) management systems
are an important part of our strategy. They also demonstrate ourcommitment to lessening our impact on the environment andour team members. Below is a chart showing our sites that are
currently certiﬁed to these ISO systems.
Merit Site

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORTISO 14001

ISO 50001

ISO 45001

Salt Lake City, Utah







Tijuana, MexicoGalway, IrelandRichmond, VirginiaPearland, Texas

2024

2024

Venlo, the Netherlands

Maastricht, the NetherlandsParis, FranceSingapore

2024













2025

20

Strengthening Communities
Merit Medical is a company that prioritizes people. We deliver high-quality products that positively impact patient lives
worldwide. Our company culture is one where employees feel valued and respected, and we collaborate actively within ourcommunities to help lift the places where we live and work.
At our facilities, we strive to develop and improve our approach to important topics, suchas health, safety, well-being, and inclusion and diversity for the beneﬁt of our internal
stakeholders and our business. Our team works hard to maintain an inclusive global culturethat reﬂects the diversity of the customers we serve and fosters an environment where
everyone feels welcome. We also aim to create meaningful work for our employees andensure they understand their importance in delivering our purpose and mission.
We strongly believe in giving back to our communities. Through our local operations, we
actively support projects that create positive change and improve lives.

Health, Safety, and Well-Being
We prioritize the health, safety, and well-being of our team members because they are thedriving force behind our success.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

Health and Safety
Occupational health and safety (OHS) is a top priority for Merit and is overseen by
our Governance and Sustainability and Operating committee. We have developed andadopted a range of policies, systems, and tools designed to allow us to embed our cultureof innovation within OHS for our people and the planet.
OHS training is mandatory for all employees, and additional job-speciﬁc training isrequired for relevant employees. Training is completed through our learning management
system (LMS), live sessions at onboarding and annually thereafter, or when changes are
made to policies, processes, and/or procedures.
We hold ISO 45001 certiﬁcation at six of our manufacturing sites and one of ourdistribution centers. We have plans to obtain ISO 45001 certiﬁcation at two othermanufacturing sites in 2024 and 2025. These certiﬁcations were supported by an increasein campaigns and training to drive awareness and greater utilization of tools to identify

21and monitor incidents. Our ISO 45001 system is designed to identify hazards, assess
risk within our processes, and mitigate risks through procedures, training, andpersonal protective equipment.
An important part of our OHS system is our programs that encourage consultationand participation in our workforce. Through safety councils, monitoring and measuring
procedures, employee-encouraged reporting, and annual campaigns, we cultivate aculture of safety as a top priority at Merit.
This work has been reflected in our total recordable injury rate (TRIR) of 0.8 in
2023 . We believe this is well below the US medical device industry average andmoves us closer to our global goal of 0 .5 .

Moving forward, we intend to continue to encourage and support our employees intaking responsibility for their own safety with the support of our OHS teams.

Well-Being
At Merit, we recognize that the well-being of our employees both in and out of
the workplace is integral to achieving our company goals. In 2023, we continued
our commitment to fostering a culture of wellness through various initiatives andprograms aimed at promoting the eight pillars of well-being.
Employee wellness activities and events are planned and led by our Wellness
Coordinator and supported by several individuals on the Wellness Communications
team. This team meets monthly to discuss past and upcoming initiatives, address
barriers, and develop new ideas for continued employee well-being.
Our wellness calendar for the 2023 year included topics that have been highly
appreciated by Merit employees. Overall, this calendar serves as a helpful tool toorganize and plan various health events, activities, and educational materials eachmonth. Topics covered included heart health, skin health, brain health, ﬁnancial
wellness, and diversity awareness. Employees participated in various wellness talks
and events that were held both online and in person. These events were hosted byinternal and external speakers and received a positive response from attendees.
We continue to oﬀer on-site health clinics at our largest facilities in Salt Lake City,
Utah, and Tijuana, Mexico. Our clinics are staﬀed with highly qualiﬁed medical
professionals who oﬀer a range of services and treatments.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

22

Throughout 2023, our Salt Lake City facility
remained committed to promoting employee healthand wellness. As part of our ongoing health-related
initiatives, we oﬀered a quarterly mammogram bus
and courtesy A1C checks in March, August, andNovember. These programs were very popular among
our employees and helped to raise awareness aroundthe importance of preventive health measures. In
September, the National Diabetes Prevention Program
was successfully continued with high participationand excellent results. We also provided employees
complimentary skin checks every other Tuesday in theclinic, conducted by a dermatologist. We are proud tohave provided these valuable services and will continue
to oﬀer them in the future.
At Merit, we believe in promoting healthy eating
habits among employees. To support this, we oﬀer
a free Healthy Choice meal in our Salt Lake City
cafeterias. Our meals are carefully curated by our
in-house dietitian, ensuring they are nutritious andbeneﬁcial for employee health. On average, we serve
approximately 2,200 Healthy Choice meals per week
to our employees. Every other month, we provide
employees with nutritious “food as medicine”
samples as an excellent way to introduce newhealthy recipes they can try at home.
Our 2024 calendar reﬂects both new and previously
well-received topics. In the upcoming year, we alsoplan to initiate various projects that aim to foster awellness-oriented culture at Merit. Our goal is to create
more opportunities for our employees to prioritize
their well-being and improve their overall healthDiversity, Equity, and Inclusion
We believe a diverse workforce brings valuable beneﬁts
to the entire organization. Advantages include accessto varied perspectives, more opportunities for learning,
greater innovation, and higher productivity—all ofwhich drive growth.

27%

Women make upof our board of directors .

We are committed to providing equal opportunity in all
aspects of employment and do not tolerate harassment
or discrimination based on race, religion, ethnicity
or national origin, gender, sexual orientation, gender
identity or expression, age, disability, protected veteranstatus, or any other characteristics protected by law.
In 2023, women made up 27% of Merit Boardof Directors. Additionally, more than 37% of
our management team are women. Of our global
workforce, 55% are female, and 57% of our teammembers in the United States come from diverse
minority backgrounds.
We have continued to develop our diversity andinclusion policies and initiatives during 2023, bringing
in gender-neutral facilities and enhancing our parental
leave policy in the United States. Having launched
the Merit Asia Women’s Leadership Network and theNorth America Women’s Leadership Initiative (WLI)
with tremendous success, we brought the initiative
to the Europe, Middle East & Africa (EMEA)
region. Led by women and open to everyone, thegroup employs a comprehensive program to cultivate
employee engagement and retention by holding
meaningful events that facilitate both personal andprofessional development.

37%

Women make upof our management team .

Of our global workforce,are female .

55%

57%

Of our team members,
comefrom diverse minority backgrounds .

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT23

To provide oversight and encourage further progress, in early 2023 we created a global
Inclusion and Diversity Council with representation from our senior leadership. Its
mission is to bring greater focus to our inclusion and diversity strategy.

Employee Engagement and Development
We strive to be the employer of choice for a diverse range of talent, and we are committed
to treating our employees fairly and in accordance with our chosen values. This approachaims to help us attract, retain, reward, and unlock talent and potential.
Developing our people is a vital part of growing our business sustainably. We havecreated global incentive plans that enable our employees to beneﬁt from strong groupperformance. In 2022, we partnered with Gallup and carried out our ﬁrst global
employee-engagement survey to explore how our talent feels about the company, theirteams, and their roles.
We continued this eﬀort in 2023, improving both our overall engagement scores andparticipation rate compared to 2022. The overall results showed that our people feela strong connection to our mission and are proud of the quality of our products andservices. Additionally, employees feel Merit is a place where they can do their best work
every day. Our overall progress was considered signiﬁcant by Gallup, but we recognize
there is still room to improve.
The feedback from our 5,000+ employees worldwide has led to 500+ local team actionplans and a global action plan aimed at company-wide initiatives. Among these global
initiatives are additional investments in management and leadership development andrevamping the company’s onboarding process. In addition, we have provided further
training, tools, and resources to our commercial teams and have made improvements toour recognition programs in our manufacturing sites. To drive our important work inthese areas, we have tied a portion of our management’s compensation to achieving theaction plans they have developed with their teams. We are continuing to hold quarterly
town halls to ensure our team members stay connected and informed.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

24

Philanthropy
From its founding, Merit set out to improve lives around the globe. Through ﬁnancial
contributions and product donations, employee time and dedication, and collaboration
with global and local nonproﬁt organizations, our teams foster stronger communities andcreate positive change in the areas we serve and beyond.

Jordan Pre-freshman
Engineering Program (PREP)
Our corporate headquarters in Utahsupports many local charitable organizations.
Combining our passion for science,technology, engineering, and mathematics(STEM) and helping local youth, we
continue to be a major sponsor of the Jordan
Pre-freshman Engineering Program (PREP),an annual six-week summer enrichment
for middle school students with an interest
and aptitude in STEM. Through courses,
research, ﬁeld trips, and a statewide STEM
fair, Jordan PREP aims to motivate andprepare students for success in STEM ﬁelds.

Primary Children’s
Medical Center
Each year our corporate oﬃce sponsors an
employee and vendor beneﬁt golf tournament
where we match all funds raised. Over theyears we have donated to many diﬀerent
charitable organizations. In 2023, we chosePrimary Children’s Medical Center andraised money to support advanced pediatric
medical research and patient care programs.
Through this contribution, we are proud
to support the Primary Children’s Medical

Center’s mission statement: “Since ourfounding in 1922, we’ve been driven by
our dedication to The Child First andAlways. Everything we do, each decision
we make, is about what’s best for the child,now, and forever.”Utah Clean Air (UCAIR)
Merit is a proud supporter of Utah Clean
Air (UCAIR). UCAIR is a statewide cleanair partnership created to make it easier forindividuals, businesses, and communities
to make small changes to improve Utah’s
air. Every small change adds to a collective
bigger step toward better health andimproved quality of life for all.

Blood Bike West
Teams at our Galway location havecontinued their support of Blood Bike
West, a volunteer organization dedicated toproviding an emergency, out-of-hours freetransport service to hospitals and hospicegroups in the West of Ireland. Blood Bike
West aims to relieve sickness and protect
health by transferring urgently needed blood,
blood products, patient records, drugs,
and other medical requirements between
hospitals and blood transfusion banks.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

Medical Missions & Mending Kids
Our philanthropy activity is not limited to our immediate communities. Every year ourGrant Committee oversees product donations to nonprofit organizations on medical
missions. During 2023, we supported missions in Haiti, Honduras, Brazil, Belize,
Nicaragua, and Tanzania.
In 2023, we again joined hands with Mending Kids, a nonprofit organization thatprovides free lifesaving surgical care to sick children worldwide. To improve pediatriccardiac care around the world where children face poor health and inadequate medicalcare, volunteer clinicians come together to donate their time and services. Their goal is
to not only care for children but to provide valuable hands-on training to local cliniciansand health education to communities.

Other Groups
Through financial donations, we are pleased to support the missions and goals ofimportant organizations, such as the American Heart Association, the Mobile School
Pantry through the Utah Food Bank, ASK Childhood Cancer Foundation, Mothers
Against Prescription Drug Abuse, Huntsman Cancer Foundation, Special Olympics
Utah, Women’s Leadership Institute, and Women in Innovation through the Society for
Cardiovascular Angiography and Interventions.

25

Creating Value
In creating sustainable value for our customers, investors, employees, suppliers, and communities, Merit Medical strives for thehighest standards of corporate governance and ethical business conduct.
Our commitment to sustainability, quality, and responsible conduct is promoted fromthe most senior levels of our business. We hold ourselves accountable to high standards ofhonesty, fairness, and integrity, and we expect the same standards of conduct throughout
our organization and our supply chain partners.

Operating Committee. Each of these committees has a written charter available at merit.
com. The board and its committees have an appropriate balance of relevant skills, diverse
experience reﬂecting our markets, and suitable independence to provide scrutiny andoversight of our executive leadership.

Board Overview

Board of Directors

Our board of directors is the highest governing body within our organization.
It is responsible for overseeing our governance practices and demonstrating leadershipas we work to achieve optimal economic, environmental, and social outcomes.
The board is supported by an executive corporate governance structure withspeciﬁc responsibilities delegated to ﬁve committees: Audit, Compensation andTalent Development, Governance and Sustainability, and Finance and

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

Audit
Committee

Compensation
and Talent
Development
Committee

Governanceand Sustainability
Committee

Finance andOperatingCommittee .

26

Enterprise Risk Management (ERM)

Business Continuity Management

We established an Enterprise Risk Management (ERM) program tosupport the company’s corporate vision, values, and objectives. Our
ERM is aligned with the Committee of Sponsoring Organizationsof the Treadway Commission (COSO) Enterprise Risk
Management and ISO 31000:2018 frameworks. The ERM teamalso manages Merit’s Business Continuity Management System(BCMS), in accordance with ISO 22301:2019.

Merit is a complex global organization with varying disruptive risk
factors in diﬀerent regions of the world. We maintain a BCMS ateach of our worldwide sites to support crisis management, business
continuity, and disaster recovery planning.
We continue to integrate BCMS procedures and perform periodic
testing at our facilities to enhance our readiness.

Merit’s Compliance Policies

We recognize that risks and opportunities are present in all businessactivities. Eﬀectively managing these is a critical factor in meetingand exceeding the expectations of our stakeholders. The ERM
program is designed to actively engage executive leadership, withboard oversight, in monitoring corporate risks in our operations
and preparing for emerging opportunities on the horizon.

Third-Party Risk Management

Code of Conduct for Employees

We value our relationships with many third parties, who are an
integral part of our success. Through managing our supply chain
and mitigating potential disruptions, we maintain a continuous
supply of products to our customers.

Code of Conduct for Suppliers

Our board of directors delegate speciﬁc oversight responsibilities toeach of its ﬁve committees. We have also implemented enhanced
ERM review practices to provide comprehensive reports regarding
fourteen tier-one risks.
Integral to Merit’s overall corporate governance, our ERM program
addresses a broad portfolio of risks that support the continuity andsustainability of our organization. Our ERM team continuously
conducts risk assessments at manufacturing locations aroundthe world, examining the potential impacts of both acute andchronic climate threats. Many additional environmental-related
topics are included in our portfolio, such as policy change, legal,
technological, reputational, and market risks. We also consider
social opportunities to enhance the trust of our stakeholders.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

Third-party risks related to information technology can comethrough interruption or data loss from technical service providers
or can result from cyber threats to Merit’s systems. We continuously
test our infrastructure and cybersecurity programs with a strong
focus on minimizing risk and protecting data.

Compliance and Ethics
Merit Medical is committed to a strong compliance and ethics
culture. Responsible business practices are essential to fulﬁlling
our mission of saving and improving lives. Corruption andunethical conduct of any kind undermines our reputation and iscontrary to our values for long-term success. We demonstrate thisadvocacy by maintaining, monitoring, and enforcing ethical andresponsible policies through all levels of the organization. We holdourselves accountable to high standards of honesty, fairness, andintegrity. Company compliance and anti-corruption policies aredesigned to ensure interaction with healthcare professionals andhealthcare organizations will beneﬁt patients and enhance thepractice of medicine.

California Transparency Act

Conflict Minerals Policy
Conflict Minerals Report
Declaration of Compliance with
California Law
Global Anti-Corruption Policy
Human Rights and Labor
Standards Policy
Open Payments and Transparency
UK Modern Slavery and Human
Trafficking Statement27All officers, directors,
employees, andqualifying contractors
complete code of
conduct training
delivered by Human
Resources upon newhire and once annually
as a refresher.

We publicize the Merit
Medical ethics hotline,a system administeredby a third party, forconfidential and optional
anonymous reportingof potential or actual
misconduct without fearof retaliation.

Every Merit employee is responsible for adhering to these policies
as well as complying with all laws and regulations, e.g., the US
Anti-Kickback Statute, the False Claims Act, the Foreign Corrupt
Practices Act, export and import regulations, advertising andpromotion laws, and applicable Sunshine/Transparency laws.
These control systems are overseen by Merit’s Chief ComplianceOﬃcer, who reports regularly to an established Compliance
Committee and the Merit Board of Directors. Our complianceand ethics policies can be accessed at merit.com.
We administer role-dependent, compliance-related training programsfor our team. All oﬃcers, directors, employees, and qualifying
contractors complete code of conduct training delivered by Human
Resources upon new hire and once annually as a refresher.
Additionally, any sales contractors meeting the 160-hours/year
threshold and employees of Sales and Marketing, Regulatory Aﬀairs,
Medical Aﬀairs, commercial sales attorneys in Legal, Accounts
Payable, Customer Service, members of Merit’s Grants Committee,
and R&D employees who interact with healthcare professionals
complete training courses including, but not limited to, healthcarecompliance, US Advertising and Promotion, US Sunshine Act,
Reimbursement Guidance, US Food and Drug Administration(FDA) requirements, Clinical Conduct, and other healthcare laws.
We promote and enforce a compliance program throughout theorganization. Our ethics hotline, a system administered by a third
party, is publicized for conﬁdential and optional anonymous
reporting of potential or actual misconduct without fear of
retaliation. All hotline reports are accessible by Merit’s Directorof Internal Audit, Chief Compliance Oﬃcer, Chief Legal Oﬃcer,
and the Audit Committee Chair. The Director of Internal Audit is
responsible for notifying appropriate entities of received cases andassigning the case to those in management, Human Resources,and Legal, who will investigate and determine necessary actions.
At least quarterly, the Audit Committee is notiﬁed of the status of
all new cases as well as any actions taken.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

During 2023, we continued making progress on compliance. We
have approved new iterations of our twelve compliance policies toprovide a consistent look and feel across documents.
In the United States, we have approved a policy to formalize
our Sunshine Act reporting procedures. We have also adopted
a Field Inventory Policy, which sets standards for how sales
representatives use inventory (trunk stock) when in the ﬁeld. This
ensures inventory is free of expired or recalled items and supports
our compliance with anti-bribery and anti-kickback regulations.
Moving forward, this will be translated to other regions of theworld and integrated into our learning management system.
In the Asia-Paciﬁc region, we restructured and expanded ourcompliance team, including hiring a seasoned auditor who will
monitor and audit the region. Our Privacy Council, led by theEurope, Middle East & Africa (EMEA) Compliance Director,
brings together team members from diﬀerent locations to ensure
our global systems, policies, and processes follow the highstandards set by European regulations.
Looking ahead, we are rolling out a new software platform
to screen and monitor external third parties, providing more
automation to our processes. We are also launching a new
escalation policy to formalize managing administrative lapses our
employees may make.

Affordability & Pricing
Our products are sold to both direct and indirect customers
within several global marketplaces. Merit’s pricing-change
cadence is consistent with the US Federal Medical Device Price
Index. The application of this cadence is dependent upon theterms of the legal framework of our pricing agreements. Meritcustomers receive written notiﬁcation of pricing changes and acorresponding list of updated pricing by product.

28

Supply Chain Management
When considering new and existing suppliers, our focus has historically prioritized
quality above all else, with audits and testing of parts and products key to our approach.
However, we are aware of the need for greater consideration of environmental and social
factors throughout our supply chain. We are partnering with Sedex, a leader in making
global supply chains more socially and environmentally sustainable, to design andimplement a new platform. Through this system, Merit can connect with suppliers to gaintransparency into their social and environmental metrics and make decisions about new
suppliers. With this partnership, Merit aims to gain more momentum in driving our value
system throughout our supply chain.
We monitor risks to our supply chain and maintain redundancies, including but notlimited to:Finished goods are supported regionally with two to seven weeks of inventory on hand;• Critical services and materials are dual sourced where possible and reasonable; and• Supplies of critical raw materials and components are evaluated and safety stocks aremaintained based on risk.
Modern slavery and conﬂict minerals are both risks we take seriously across our supply chain.
We have identiﬁed and considered our exposure on an ongoing basis as reported in our
Conﬂict Minerals Policy and Report and Human Rights and Labor Standards Policy.

Quality Assurance
We are committed to delivering excellence across all aspects of our business. Patient careand providing high-quality, innovative products that are safe and eﬀective are our primarygoals. However, quality is also important in turnaround time on shipping and deliveries
and in our clinician training programs.
Our commitment to quality begins with our Quality Policy, as developed by a crossfunctional senior leadership team led by our Chief Executive Oﬃcer. Our Quality Policy is
on display throughout our facilities, has been translated into relevant local languages, and is
attached to each employee’s security/access badge. Employees are introduced to this policy
at the time of hire and during annual training.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORTThe Quality Policy is supported by a Quality Management System (QMS), designed todeliver innovative products and services throughout all stages of a product’s lifecycle. We
have an independent Quality Assurance function that establishes, monitors, and maintains
the QMS, including a designated quality leader at each manufacturing, design, anddistribution center.

Quality Management TeamOur independent Quality Assurance function establishes, monitors, and maintains
the QMS. The Merit Sr. Vice President of Global Quality Assurance also serves as the
Global Quality System Management Representative (GQSMR). The GQSMR has
the authority/responsibility to:• Establish, implement, and maintain processes needed to ensure the QMS iscompliant with current Global Regulatory Requirements;• Monitor and report on the performance of the QMS and identify any need for
improvement to executive management and annually to the Operating Committeeof the board of directors;• Interact with external bodies on matters relating to the quality system; and• Ensure awareness of all applicable regulatory, customer, and quality management
requirements throughout the organization.

Quality Compliance
Merit’s QMS is designed to closely align with the requirements of ISO 13485:2016 forMedical Device Operations and that of ISO 9001:2015 for General Manufacturing
Operations at a minimum. International and customer-speciﬁc requirements are blended
into our systems as required. Merit maintains certiﬁcation to both these standards, inaddition to Medical Device Single Audit Program (MDSAP) certiﬁcation.
We welcome external and internal reviews and assessments of our QMS in order to
identify opportunities to improve. External reviewers include regulatory agencies andcustomers, while the assigned QMS representative at each manufacturing, design
center, and distribution site is responsible for developing an annual internal audit
schedule and coordinating its completion with suitably trained audit team members.

29

product lifecycle management processes go through an extensive
risk management process, as deﬁned by ISO 14971 (Medical
Devices—Application of Risk Management to Medical Devices).
Design input, output, and risk controls are veriﬁed to ensure we
produce safe and eﬀective medical device products that meet ouruser’s needs. Product use and performance are validated througha simulated or actual clinical environment by trained clinicalprofessionals or application experts. Once all veriﬁcation andvalidation processes are complete, products enter production,
where all risk controls are properly implemented to create safe andeﬀective medical devices.

Number of Audits in 2023

5
35
16

We are committed to improving products by reducing residual
risks based on internal and external vigilance to ensure our devices
meet or exceed the commercial state of the art.

regulatory audits

customer audits

internal audits

Proactive Feedback
When opportunities for improvement are identiﬁed, corrective
and preventive actions are taken locally and globally when
deemed appropriate.
We engage with various advocacy and trade association
network groups (e.g., AdvaMed) around the world. These groups
encourage knowledge sharing with industry peers, regulatory
bodies, and learning institutions with respect to regulatory
expectations and implementation, incorporating state-of-the-art
practices and applying new regulations for the bettermentof patients and the environment.

Product Safety
Creating high-quality, innovative products that are safe andeﬀective is our primary goal. We begin with a robust designcontrol process that establishes performance, safety, and user
requirements (input) that transitions into a physical design(output) to achieve intended use. Merit’s design control and

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORTThe expectation within the medical device industry is that
manufacturers will develop a comprehensive system forcontinuously collecting, evaluating, and acting upon post-market
data related to the performance and safety of all marketed devices.
Information gained from this feedback allows product support
teams to continuously assess the safety and performance of Meritdevices so that we can deliver safe and eﬀective medical devices tocommunities across the world.
Once commercialized, product performance characteristics
are monitored through post-market surveillance (PMS). The
European Union Medical Device Regulation (EU MDR) requires
a PMS plan for each device. The FDA has similar current Good
Manufacturing Practice (cGMP) expectations. Merit complies withthese requirements by collecting data through proactive post-market
surveillance (PPMS) activities and post-market clinical follow-up(PMCF) activities. Using this model, Merit has implemented a
global harmonized PMS system that assesses device safety andperformance across all regions where Merit devices are marketed.

30

The primary component of the PMS system consists of a
PMCF program that oﬀers healthcare partners the opportunity
to anonymously provide clinical performance feedback on
Merit devices. Participants in this program are qualiﬁed in theclinical ﬁeld applicable to each device by a third-party program
management organization. Practitioners provide anonymous
feedback, relating their experiences with device safety andperformance for those devices classiﬁed as IIa, IIb, and III (EUMDR). The data collections are designed to focus on clinicalperformance (outcomes), new and emerging risks, potential oﬀlabel use as well as customer needs, expectations, understandings,
and product improvement.

Reactive Feedback• Product customer complaints• Worldwide safety and performance data accumulated throughcountry-speciﬁc databases (e.g., FDA-MAUDE, Total Product
Lifecycle or TPLC, and the Therapeutic Goods Administration
Database of Adverse Event Notiﬁcations or TGA-DAEN)

Reactive performance metrics:• Zero class I recalls• 64 (2015–2024) products listed in the
FDA’s MedWatch database• Zero FDA enforcement actions
These activities monitor the totality of the risks presented throughtypical use of a device (i.e., product risk proﬁle) to ensure that the
proﬁle is not increasing over time. If safety or performance signals
are detected through the PMS system that indicate an increased
risk, the system is designed to drive corrections or improvement toreturn to—or improve upon—the original, approved risk proﬁle.
The PMS system is a highly interactive safety and performancemonitoring process that leverages real-time, reactive, and proactive
quality data in combination with well-established, closed-loop,
interdependent quality systems to monitor performance and safety
throughout the product lifecycle.

Delivery Performance• Product recall history for Merit products as well as similar or
equivalent products available

In addition to product performance metrics, delivery performance isalso assessed by measuring delivery times, accuracy, and complaints.

• Product safety and performance as a measure of the volume of
product soldWe have consistently exceeded our goal of delivering products
to the direct market within three days or less of order placement,
92% of the time during 2023. In addition, approximately 97%
of orders were delivered correctly the ﬁrst time.

• Comparison of clinical research or clinical literature pertinent
to Merit products or equivalent products in the market

Reactive
Performance Metrics

064Class I recalls

products listed
in the FDA’s
MedWatch database

0

FDA
enforcement actions

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

31

Supplier Quality Management
Our global procurement team manages $250 million in annual direct purchases (i.e.,
items/services that may directly aﬀect product quality). These direct suppliers share our
responsibility for delivering high-quality, innovative products that are safe and eﬀective.
Our purchasing and supplier management processes are deﬁned by documented
procedures that are compliant with ISO 13485 (Medical Devices—Quality Management
Systems). The Quality department ensures all purchased products and services conformto speciﬁed requirements. Supplier selection, qualiﬁcation, and monitoring are dependent
upon the product or service type and quality impact and are proportionate to the levelof risk associated with the device (e.g., applicable regulatory requirements, design input/
output, supplier performance, current/previous relationships, Merit requirements, etc.).
Suppliers are approved prior to use and are subject to ongoing monitoring of performance(e.g., incoming inspection results, supplier corrective action response, supplier quality
audits, etc.) throughout the commercial arrangement.

2023 Direct Suppliers in Numbers

5,796
DIRECT SUPPLIERS

45
COUNTRIESSterility Assurance
Our medical devices are terminally sterilized utilizing several process modalities, including
ethylene oxide, radiation, and moist heat. Each of these sterilization modalities complies
with the requirements set forth within the following, respective international standard:
ISO 11135: Sterilization of Healthcare Products—Ethylene Oxide—Requirements for thedevelopment, validation, and routine control of a sterilization process for medical devices.
The eﬀectiveness of our validated ethylene oxide sterilization process is monitored for eachsterilized load utilizing biological indicators in accordance with ISO 11138: Sterilization of
Healthcare Products—Biological Indicators.

98.6%
2023 FIRST-PASS(INCOMING QUALITY INSPECTION)

46
2023 SUPPLIER AUDITS

We have consistently exceeded our goal ofdelivering products to the direct market within
three days or less of order placement, 92% of thetime during 2023. In addition, approximately 97%
of orders were delivered correctly the first time.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

156
2023 SUPPLIER CORRECTIVE ACTION REQUESTS

32

ISO 11137: Sterilization of Healthcare Products—Radiation—Requirements for thedevelopment, validation, and routine control of a sterilization process for medical devices.
ISO 17665: Sterilization of Healthcare Products—Moist Heat—Requirements for thedevelopment, validation, and routine control of a sterilization process for medical devices.
Speciﬁc to ethylene oxide sterilization: In April 2023, the US Environmental Protection
Agency (EPA) proposed regulations to address the health and safety concerns associatedwith ethylene oxide emissions. One of the proposed regulations imposed a limit on theconcentration of ethylene oxide permitted within a sterilization cycle. We engaged with our
ethylene oxide sterilization providers to strategize and plan for compliance to the proposed
regulations. In March 2024, the EPA released the ﬁnal rule on ethylene oxide emissions
with the proposed maximum ethylene oxide concentration limit removed. Although the
ethylene oxide concentration of our sterilization cycles is not limited, we, in partnershipwith our sterilizers, plan to optimize our ethylene oxide sterilization cycles, resulting in a
reduced amount of ethylene oxide required to sterilize our products.
Our sterile barrier packages are designed and qualiﬁed to prevent contamination andtampering. These packages adhere to the strict requirements set forth in ISO 11607(Packaging for Terminally Sterilized Medical Devices). Our Quality Department ensures
all packaging materials and ﬁnished goods packages meet speciﬁcation.
Our manufacturing environments are classiﬁed, validated, and monitored in accordancewith ISO 14644 (Cleanrooms and Associated Controlled Environments). Our Quality
Department ensures that eﬀective environmental controls are implemented andmaintained throughout our manufacturing space.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT33

Awards & Recognition
We believe true success happens when we challenge ourselves to grow and improve. We are proud to announce the following Merit achievements, recognized by notable organizations.
Each award demonstrates the momentum of our mission to improve the lives of people, families, and communities throughout the globe.
Barron’s 100 Most Sustainable US Companies 2024
We are thrilled to have our performance recognized byBarron’s as one of the 100 Most Sustainable US Companies
in 2024. We are honored to be recognized alongside othercompanies who are making a diﬀerence in many ways, suchas increasing workplace diversity and reducing greenhousegas emissions.
Top Employer 2023: China
For the second year in a row, Merit is proud to be therecipient of the Top Employer China award. We arehonored that our people-ﬁrst culture is recognized, where
all employees are valued and encouraged to reach theirfull potential.

100 Companies Inspiring Women
Merit was recognized by Inspire Utah in its 100 Companies
Inspiring Women award for oﬀering family-friendly policies
and practices as well as women-speciﬁc initiatives known to
impact recruiting, hiring, retaining, and advancing women
employees, managers, and leaders.
Utah Business CXO of the Yearand Utah Business CHRO of the Year
Merit celebrates with Utah Business in honoring ourhardworking C-suite executives. In 2023, Merit’s Chief
Financial Oﬃcer, Raul Parra, and Chief Human Resources
Oﬃcer (CHRO), Mike Voigt, were recognized alongsideother hardworking nominees by Utah Business magazine as
CXO and CHRO of the year.

National Irish Safety Organization
Safety Awards: Best MedTech Company
for High Achiever Award
The National Irish Organization (NISO) Awards havebecome Ireland’s premier safety awards for companies
that showcase the health and safety performance of theirbusinesses. Winning a NISO High Achiever Awarddemonstrates the positive and proactive culture of safety
management that exists within a business. Congratulations
to Merit Ireland for outstanding performance in obtaining
overall winner within the Medical Device category.

The Top 50 Women Leaders of Salt Lake City 2023
Our Vice President of Global Communications,
Sarah Comstock, was recognized among other women
making a diﬀerence as one of the Top 50 Women
Leaders of Salt Lake City 2023.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

34

Report Parameters
This report has been prepared using Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), andTask Force on Climate-Related Financial Disclosures (TCFD) standards, which are disclosed and referenced within the report and the
GRI, SASB, and TCFD indices. We have followed GRI, SASB, and TCFD standards where indicated. We report our sustainability
performance on an annual basis. Except where stated otherwise, this report includes data from January 1 through December 31, 2023.
For this 2023 sustainability report, we considered input from third-party inquiries we have made, external ratings, and general indices.
The metrics and data provided in this report reﬂect input from Merit Medical-owned and/or controlled sites as well as third-party
suppliers and/or vendors who have an approved business relationship. The report includes data from Merit enterprises where we haveoperational control. The data reported have been obtained primarily from our ﬁnancial management reporting systems, various humanresources information systems, and the Merit corporate reporting systems for sustainability-reporting indicators.
We are conﬁdent in the overall reliability of the data reported but recognize that some of these data are subject to uncertainty, inherent
to limitations associated with measuring, calculating, and estimating data. Minor corrections in historic data may be due to data errors
or other approved reasons. Each year, energy consumption and environmental emission estimates are recalculated and revised for all years
in the annual sustainability report. Attempts are made to improve both the analyses, using better methods or data, and theoverall usefulness of the report.
Please contact us at merit.com with any questions or comments about these changes.

Notes:
Environmental data are based on Merit-owned and/or controlled operating locations that are greater than 10,000 ft2 This includes
manufacturing and distribution/sales locations. During 2021, we began reporting our total energy usage in units of joules instead ofkilowatt hours to better align with GRI reporting standards.
Intensity is measured as a given metric divided by the total yearly net revenue dollars earned.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

35

GRI Index
GRI Standard

Disclosure

Location

2-1

Organizational Details

Annual Report (10K), Item 1. Business, p. 1

2-2

Entities Included in the Organization's Sustainability Reporting

2023 Sustainability Report, Report Parameters, p. 35

2-4

Restatements of Information

In 2023, we enhanced our methodology and data processing for scope 1 andscope 2 energy and emissions data. We worked with a third party to verify ourdata for energy and GHG emissions. This resulted in more accurate baseline
and adjustment to our 2020 baseline and subsequent years' performance.

2-7

Employees

Annual Report (10K), Our People, p. 17

2-9

Governance structure and composition

2023 Sustainability Report, Board Overview, p. 26
2023 Proxy, P. 14

2-10

Nomination and selection of the highest governance body2024 Proxy, p. 5

2-11

Chair of the highest governance body2023 Sustainability Report, Board Overview, p. 26
2023 Proxy, p. 13

2-12

Role of the highest governance body in overseeing the management of impacts

2023 Sustainability Report, Board Overview, p. 26

2-13

Delegation of responsibility for managing impacts

2023 Sustainability Report, Enterprise Risk Management, p. 27
Annual Report (10K), p. 20

2-26

Mechanisms for seeking advice and raising concerns

Merit Alert Line

General Disclosures

GRI 201: Economic Performance
201-2

Financial implications and other risks and opportunities due to climate change

2023 Sustainability Report, Climate Related Risks for Merit, p. 15
Climate Related Opportunities for Merit, p. 16

305-1

Direct (scope 1) greenhouse gas (GHG) emissions

2023 Sustainability Report, Our 2030 Targets and Progress, p. 9

305-2

Energy indirect (scope 2) GHG emissions

2023 Sustainability Report, Our 2030 Targets and Progress, p. 9

305-4

GHG emissions intensity

2023 Sustainability Report, Key Figures at a Glance, p. 7

305-5

Reduction of GHG emissions

2023 Sustainability Report, Our 2030 Targets and Progress, p. 9

302-1

Energy consumption within the organization

2023 Sustainability Report, Key Figures at a Glance, p. 7

302-3

Energy intensity

2023 Sustainability Report, Our 2030 Targets and Progress, p. 9

302-4

Reduction of energy consumption

2023 Sustainability Report, Key Figures at a Glance, p. 7

GRI 305: Emissions

GRI 302: Energy

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT36

GRI Standard

Disclosure

Location

GRI 303: Water and Effluents
303-5

Water consumption

2023 Sustainability Report, Key Figures at a Glance, p. 7

GRI 401: Occupational Health & Safety
403-1

Occupational health and safety management system

2023 Sustainability Report, Health & Safety, p. 21

403-2

Hazard identiﬁcation, risk assessment, and incident investigation

2023 Sustainability Report, Health & Safety, p. 21

403-3

Occupational health services

2023 Sustainability Report, Health & Safety, p. 21

403-4

Worker participation, consultation, and communication on occupational health & safety2023 Sustainability Report, Health & Safety, p. 21

403-5

Worker training on occupational health and safety2023 Sustainability Report, Health & Safety, p. 22

403-6

Promotion of worker health2023 Sustainability Report, Well Being, p. 23

403-8

Workers covered by an occupational health and safety management system

2022 Sustainability Report, ISO Certiﬁed Management Systems forEnvironmental, Energy, and Occupational Health & Safety, p. 20

GRI 416: Customer Health and Safety
416-2

Incidents of non-compliance concerning the health and safety impacts of products and services

2023 Sustainability Report, Quality Assurance—Reactive Feedback, p. 31

GRI 405: Diversity and Equal Opportunity
405-1

Diversity of governance bodies and employees

2023 Sustainability Report, Diversity, Equity & Inclusion, p. 23

405-2

Ratio of basic salary and remuneration of women to men

Merit Medical Ireland—Gender Pay Gap Report 2022

GRI 413: Local Communities
413-1

Operations with local community engagement, impact assessments, and development programs2023 Sustainability Report, Philanthropy, p. 25

GRI 205: Anti-Corruption Behavior
205-1

Operations assessed for risks related to corruption

Global Anti-Corruption Policy

205-2

Communication and training about anti-corruption policies and procedures

2023 Sustainability Report, Compliance & Ethics, p. 27

GRI 206: Anti-Competitive Behavior
206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

Annual Report (10K), p. 36 “Legal Proceedings” with reference to Note 10“Commitments and Contingencies” to consolidated ﬁnancial statements in
Item 8 of the report.

37

SASB Index
Topic

SASB Code

MetricHC-MS-240a.1

Not disclosed at this time.
Ratio of weighted average rate of net price increases (for all products) to the annual increase in
the US Consumer Price Index

HC-MS-240a.2

Description of how price information foreach product is disclosed to customers or
to their agents

Merit’s pricing change cadence in totality is consistent with the US Federal Medical
Device Price Index. The application of this price change cadence is dependent upon theterms of the legal framework of the pricing agreements we are engaged in. Regardless ofthe cadence, upon pricing changes Merit customers receive written notiﬁcation of pricing
changes and a corresponding list of updated pricing by product. For more information,
see Aﬀordability & Pricing on p. 28.

HC-MS-250a.1

Number of recalls issued, total units recalled

Zero Class I recalls. For more information, see Quality Assurance on p. 31 and the FDA
Medical Device Recall database.

HC-MS-250a.2

List of products listed in the FDA’s MedWatch
Safety Alerts for Human Medical Products
database

64 products listed (2015–2024). For more information, see Quality Assurance on p. 31
and FDA MedWatch database.

HC-MS-250a.3

Number of fatalities related to products asreported in the FDA Manufacturer and User
Facility Device Experience

Seven fatalities in FDA MAUDE database but none attributed to failure of products.
For more information, see FDA MAUDE database.

HC-MS-250a.4

Number of FDA enforcement actions taken in
response to violations of cGMP, by type

Zero FDA enforcement actions. For more information, see Quality Assurance on p. 31.

HC-MS-270a.1

Total amount of monetary losses as aresult of legal proceedings associated withfalse marketing claims

Material legal proceedings will be reported in Exchange Act ﬁlings.

HC-MS-270a.2

Description of code of ethics governing promotion of oﬀ-label use of products

Merit’s employees are committed to never promoting “oﬀ-label” or unapproved uses of
products. For more information, see p. 17 of Merit’s Code of Conduct and Ethics.

Affordability and Pricing

Product Safety

Ethical Marketing

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

Disclosure/Explanation

38

TopicSASB Code

MetricDisclosure/Explanation

HC-MS-410a.1

Discussion of process to assess and manage
environmental and human health considerations
associated with chemicals in products and meetdemand for sustainable products

Merit is reviewing materials used in our devices to ﬁnd eco-friendly alternatives andimprove recyclability. Merit has also embarked on a multi-year project to reduce unnecessary product packaging. For more information, see Product Lifecycle and Packaging
on p. 19.

Product Design and Lifecycle
Management

Merit is focused on recycling throughout our global manufacturing facilities and employs the Merit Smart Shipping program to reduce shipping materials used. For more
information, see Recycling on p. 19.
HC-MS-410a.2

Total amount of products accepted for takeback
and reused, recycled, or donated, broken downby: (1) devices and equipment and (2) supplies

Due to patient safety concerns, Merit does not currently accept products for takeback.

HC-MS-430a.1

Percentage of (1) entity’s facilities and (2) Tier I
suppliers’ facilities participating in third-party audit
programs for manufacturing and product quality

Responsibilities and methods for the purchasing process are deﬁned and controlled bydocumented procedures. Suppliers are assessed and approved prior to use and are subject
to ongoing monitoring of performance throughout the commercial arrangement. In
2023, Merit conducted 42 supplier audits. See Supply Chain Management on p. 29 andSupplier Quality Management on p. 32 for more details.

HC-MS-430a.2

Description of eﬀorts to maintain traceability
within the distribution chain

Supplier selection and the degree of control exercised are dependent upon the product/
service type and quality impact and are proportionate to the level of risk associated withthe device, compliance with applicable regulatory requirements, supplier performance,
previous relationships, and Merit requirements. Suppliers are assessed and approved
prior to use and are subject to ongoing monitoring of performance (e.g., Incoming
Inspection Results, Supplier Corrective Action Response, Supplier Quality Audits, etc.)
throughout the commercial arrangement. See Supplier Quality Management on p. 32
for more details.

HC-MS-430a.3

Description of the management of risks associated with the use of critical materials

Merit manages the risks associated with the use of critical materials through a numberof mechanisms, including but not limited to, ﬁnished goods supported regionally with
two to seven weeks of inventory on hand; critical services and materials are dual sourced
where possible and reasonable; supplies of critical raw materials and components areevaluated; and safety stocks are maintained based on risk.

Supply Chain Management

In addition, Merit focuses on Modern Slavery and Conﬂict Minerals risks across our
supply chain, having identiﬁed and considered our exposure on an ongoing basis asreported in our Conﬂict Minerals Policy and Report and Modern Slavery Statement.
For more information, see Supply Chain Management on p. 29.

THE POWER OF MOMENTUM | 2023 SUSTAINABILITY REPORT

39

TopicSASB Code

MetricDisclosure/Explanation

HC-MS-510a.1

Total amount of monetary losses as a result oflegal proceedings associated with bribery or
corruption

Material legal proceedings will be reported in Exchange Act ﬁlings.

HC-MS-510a.2

Description of code of ethics governing interactions with healthcare professionals

Sales contractors meeting the 160 hours/year threshold and employees of the Sales andMarketing department, Regulatory Aﬀairs, Medical Aﬀairs, commercial sales attorneys
in the Legal department, Accounts Payable department, Customer Service, membersof Merit’s Grants Committee, and those R&D employees who interact with healthcare
professionals complete training courses, including but not limited to, healthcare compliance, US Advertising and Promotion, US Sunshine Act, Reimbursement Guidance,
FDA requirements, Clinical Conduct, and other healthcare laws. For more information,
see Compliance and Ethics on p. 21 and Merit’s Compliance website.

Business Ethics

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40

merit.com