INNOVATING THE FUTURE
2022 SUSTAINABILITY REPORTTable of Contents
President and CEO’s Letter  .  .  .  .  .  .  .  .  .  .  .  .  . 3Corporate Overview  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4

Social  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18
Health, Safety, and Wellbeing  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .18Diversity, Equity, and Inclusion  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .20

Our Company  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .4

Employee Engagement and Development  .  .  .  .  .  .  .  .  .21

Our Products and Services  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .4

Philanthropy  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .22

Our Values  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .4
Our Scale and Geographic Footprint  .  .  .  .  .  .  .  .  .  .  .  .  .  .5
Key Figures at a Glance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .6
Our Approach to Sustainability  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .7
Our 2030 Targets and Progress .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .8
ESG Oversight and Governance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .9
Materiality Assessment  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .12

Environmental .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13
Energy Use and GHG Emissions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .13

Governance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 23
Board Overview  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .23Enterprise Opportunity Management  .  .  .  .  .  .  .  .  .  .  .  .24Compliance and Ethics  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .24Affordability & Pricing .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .26Supply Chain Management  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .26Quality Assurance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .262022 Direct Suppliers in Numbers  .  .  .  .  .  .  .  .  .  .  .  .  .  .29Awards & Recognition .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .30

Renewable Energy  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .15Climate Risk and Opportunity  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .15

Report Parameters  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 31

Water  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .16Product Lifecycle and Packaging  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .17

GRI Index  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 32

Recycling  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .17

SASB Index  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 34

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

2

President andCEO’s Letter
Saving lives, sustainably
Every day, Merit Medical’s products andservices improve and save lives around theglobe. To continue positively impacting
our customers and their patients, we mustbe sustainable.
We have always striven for efficiency, thisdrive for advancement becoming closely
integrated with environmental and social
factors over recent years. Environmental,social, and governance (ESG) initiatives are
now integral to and embedded within our
long-term strategies, offering many benefits
to our business and to our stakeholders.
We continue to invest in and dedicate
resources to making progress. This effort
has resulted in Merit being named one ofAmerica’s Most Responsible Companies for2023 by Newsweek. I am proud of what wehave accomplished so far, and I am honored
the company received this recognition forthe positive, lasting impact it is having.
An important step forward this year wasincreasing the understanding of our material

ESG issues. Working with an external
consultancy has provided a comprehensive
picture of what our stakeholders and ourindustry expect of us. We intend to use thisinformation to guide and refine our efforts
and goals.
Our culture of understand, innovate,
and deliver is at the heart of many
notable actions we are taking to further
companywide sustainability. Our 2022
Sustainability Report details these significant
steps, each carried out to achieve ourcorporate sustainability goals. This includes
making progress against many of our 2030
Operational Sustainability Targets. We
have also launched our first formal calendarof employee-wellness activities, and wehave completed our first global employeeengagement survey.
Our focus this year and beyond will be tocontinue delivering on our ambitions withmeaningful action. We have a new global
Inclusion and Diversity Council withgreat potential, and I am excited about the
progress and collaboration it will bring to

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

the company. I look forward to acting on the
climate risk and opportunity information
gathered by our teams throughout the year.
These are both key areas for our business.
Merit team members across the globe are
our most important and greatest assets,
and I would like to thank them for theircontributions again this year. The progress
they continue to make inspires me, and I
am grateful.
Healthcare is an evolving industry, always
increasing its efforts to make positivechange—and so are we, welcoming growth
and the opportunity to improve. As wefocus on maturing our sustainability goals,
programs, and initiatives, we are driven by
our passion and our innovation, each of
us guided by our desire to have a positive
impact on the world around us.

Fred P. Lampropoulos
Founder, Chairman, and CEO

3

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

Our Company

Our Vision

Merit Medical was founded in 1987 by Fred P. Lampropoulos, Kent W. Stanger, Darla Gill,
and William 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 thattime, our products and product lines have expanded substantially, both through internal
research and development projects and through strategic acquisitions.

Our vision is to be the most customer-focused company in healthcare. We make a difference
by understanding physician needs, and innovating and delivering a diverse range of productsthat improve the lives of people, families, and communities throughout the world.

Our 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.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORTOur Values
We believe that long-term value is only created for our patients, employees, shareholders,and communities 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.

4Our Scale and Geographic
Footprint
We serve client hospitals worldwide with adomestic and international sales force andclinical support team.
Our global headquarters is in Salt Lake City,
Utah, with our principal office for European
operations located in Galway, Ireland, and ourmain office for Asia Pacific distribution locatedin Beijing, China. We also support our Europe,
Middle East, and Africa (EMEA) operations
from a distribution and customer service facility
located in Maastricht, The Netherlands.

Manufacturing, Commercial, Distribution, and Research Space is approximately

1.9

1.0

0.9

MILLION FT2MILLION FT2MILLION FT2

TOTAL

OWNED

LEASED

Key manufacturing and packaging facilities
are located in Utah, Virginia, Texas, Ireland,Brazil, France, Singapore, Mexico, and
The Netherlands.
We conduct our research and development
activities primarily at our facilities in
Utah, California, Texas, Ireland, France,
and Singapore.
Our team also leases commercial space in India,
Hong Kong, Italy, Dubai, Australia, Russia,
Canada, Brazil, Malaysia, South Korea, Japan,
South Africa, Singapore, Great Britain, Vietnam,
Taiwan, New Zealand, Indonesia, and France aswell as in California and Texas.
Our total manufacturing, commercial,
distribution, and research space isapproximately 1.9 million square feet (ft2),
of which approximately 1.0 million ft2 isowned, and 0.9 million ft2 is leased.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORTGLOBAL HEADQUARTERS
PRINCIPAL OFFICE FOR EUROPEAN OPERATIONSPRINCIPAL OFFICE FOR ASIA PACIFIC DISTRIBUTION
DISTRIBUTION AND CUSTOMER SERVICE FACILITY
MANUFACTURING AND PACKAGING FACILITIESRESEARCH AND DEVELOPMENT

5Key Figures at a Glance
UNIT

2022

2021

2020
(baseline year)

Net Sales$ Thousands

1,150,981

1,074,751

963,875

Gross Profit$ Thousands

519,099

485,333

401,777

Net Income (loss)$ Thousands

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

$ Thousands

114,291

147,231

165,270

Capital Expenditures for Property & Equipment$ Thousands

45,02927,93945,988

Free Cash Flow2$ Thousands

69,262

119,292

119,282Long-term Debt

$ Thousands

186,759

234,397343,722Equity$ Thousands

1,144,397

1,039,799

958,575

ECONOMY1
Revenues

GJ = gigajoules
MT CO2e = metric tons carbon dioxide equivalentm3 = cubic meter
m3/$KRev = cubic meter per thousand dollars of revenue earned

ENVIRONMENT

3

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

Total Energy Consumption

GJ

270,273

204,404

201,513

%

26

20

5

Total Greenhouse Gas (GHG) Emissions

MT CO2e

16,593

18,20021,400Total Water Consumption5

m3

242,274

243,299

233,82630.21050.22640.2426Percentage Energy from Renewable Sources
4m /$KRev

Water Intensity

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

1.

Figures taken from Merit’s 10-K, filed with the SEC on
February 24, 2023.

2.

Free cash flow is a non-GAAP Metric defined as cash flowfrom operations calculated in accordance with GAAP
less capital expenditures for property and equipment
calculated in accordance with GAAP.

Energy Intensity

GJ/$KRev

0.23480.19020.2091GHG Emissions Intensity

MT/$KRev

0.01440.01690.0222

3.

Environmental data are based on eight manufacturinglocations and seven sales/distribution centers. During2021, the method of reporting energy was changed fromkilowatt hours to units of joules to better align with
Global Reporting Initiative (GRI) standards of reporting.

Regular Full-Time Associates

6,532

6,692

6,096

4.

Total GHG emissions for scope 1 and scope 2.

US-Based Associates

2,770

2,926

2,925

5.

Non-US Associates

4,087

3,766

3,171

0.7

0.8

1.1

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

1.5

1.6

1.8

6.

0

0

0

According to North American Industry Classification
System (NAICS) for Miscellaneous Manufacturing,
Medical Equipment and Supplies Manufacturing: NAICS
Industry 3391.

SOCIETY

Total Recordable Incident Rate (TRIR)
6

Medical Equipment & Supplies Manufacturing TRIR Industry Average
Fatal Work-Related Accidents

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

6

Our Approach to Sustainability
As a leading global manufacturer and marketer of healthcare technology, Merit has asignificant role to play in contributing to a sustainable future.
Driven by a desire to make a difference in the world, our ESG priorities are critical now morethan ever to our overall success and to our relationships with stakeholders. We understandthe long-term health of our customers, patients, team members, and communities relies on amore sustainable, healthier, and equitable world.

Our vision is for sustainability to be understood and adopted at every level of our business.
By investing in employee education and training, sustainability can advance as well as beprioritized and driven by every team member. An annual sustainability report is an importantpart of this journey. To demonstrate commitment and transparency around our strategy
and performance, this report has been prepared using GRI and Sustainability AccountingStandards Board (SASB) reporting standards.

Merit’s corporate sustainability strategy focuses on adding business value by assessing the risks
and opportunities associated with our companywide ESG goals. Through our Enterprise
Opportunity Management (EOM) program and engaging with stakeholders, we seek to
identify opportunities to enhance our business.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

7

2030 Water Goal

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

2030 Energy Goal

Our 2030 Targets and Progress
The following 2030 Operational Sustainability Targets provide focus across our organization. They are overseen by the Corporate
Sustainability Council and approved by the board of directors.

2030 TARGET

2022 RESULT

2021 RESULT

Energy from Renewable Sources

50% Renewable Sources

21% Increase

15% Increase

Energy Intensity

10% Reduction

12% Increase

9% Reduction

GHG Emissions Intensity (Scope 1 and 2)

15% Reduction

35% Reduction

24% Reduction

Water Intensity

10% Reduction

13% Reduction

7% Reduction

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 assure consistent measurement of our progress.

Performance Trends and Drivers
We saw an improvement in GHG intensity and water intensity during 2022. GHG intensity improvement was driven by our overall
increase in the utilization of renewable and carbon-free energy sources, such as wind, solar, hydroelectric, and/or nuclear energy.
Water intensity improvement during 2022 was driven by our water-reduction and efficiency projects, such as xeriscaping andwater-recirculation systems at our largest site in Salt Lake City, Utah.

Increase the proportion of
Merit’s energy from renewablesources to 50% of total usage .

Our energy intensity performance needs further work to align with our 2030 goal to realize a 10% reduction by 2030. During 2022,
energy intensity increased by 12% from our baseline year. This was driven by a combination of factors, such as operations returning
post-COVID, an increase of cooling days in 2022 compared to 2021 and 2020 at several sites, and building some of our inventories
ahead of sales.

2030 GHG Emission Goal

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

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

8

membersareindependentor””LampropoulosFred
Lampropoulos
asthepresident
andchief
executiveofmembers
membersareare
independent
independentor “non-executive.
“non-executive.
or “non-executive.
“non-executive.
Fred
Fred
Lampropoulos
Lampropoulos
servesservesas thetheasthepresident
president
and
and
chief
chief
executive
executive
officer
officeareareindependentor “non-executive.
” Fredservesas servesthepresident
andandchief
executive
officermembers
membersareindependentor “non-executive.
“non-executive.
Fred
Lampropoulos
servesasthepresident
andchief
executiveofmembers
membersareindependent
independentoror”” Fred””LampropoulosFred
Lampropoulos
servesservesasasthepresident
president
and
chief
chief
executive
executive
officer
officeESG Oversight and Governance

Board of Directors

Making progress in sustainability is vital for the success of our overallbusiness strategy. As such, dedicating the right resources to oversee,manage, and promote our sustainability initiatives is important.
There are two key groups dedicated to sustainability within our
corporate governance structure.

Environmental, Social,and Governance Committee
Our sustainability efforts are guided by the Environmental, Social,and Governance Committee (ESG Committee) of our board of
directors, which comprises five independent directors and is chaired
by F. Ann Millner, Ed. D.
Our ESG Committee is responsible for the oversight of Merit’s efforts
to promote business operations that encourage environmental andsocial consciousness, including climate-related issues, sustainability
initiatives, the environment, and other social topics. The ESG
Committee communicates with the full board on a quarterly basis
and includes information received from the Corporate Sustainability
Council, which it oversees.

Fred Lampropoulos

F. Ann Millner

A. Scott Anderson

Lonny J. Carpenter

Lead Independent Director

Director

Director

Rear AdmiralDavid K. Floyd

Thomas J. Gunderson

James T. Hogan

Stephen C. Evans

Director

Director

Director

Laura S. Kaiser

Michael R. McDonnell

Lynne N. Ward

Director

Director

Director

President, Chief Executive
OfficerandChairman
OfficerandChairman
Officer
Officerandand
Chairman
Chairman
OfficerandChairman
Officer
Officerandand
Chairman
Chairman
OfficerandChairmanof the Board

US Navy Retired Director

Board of Directors
Merit Medical’s Board of Directors is the highest governance bodywithin our organization. Eight of the ten members are independentor “non-executive.” Fred Lampropoulos serves as the president andchief executive officer of the company and chairman of the board.
At the issuance of this report, the board is structured as follows:

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

9

Independent Committees of the Board
The board appoints members to its independent Audit, Compensation and Talent Development, Environment,
Social and Governance, Finance, and Operating committees. Each of these committees has a written charter
approved by the board and available at merit.com.
AUDIT COMMITTEEFINANCE COMMITTEE

Lynne N. Ward (Chair)
Rear Admiral (Ret.) Stephen C. Evans
Thomas J. Gunderson
James T. Hogan
Michael R. McDonnell

Thomas J. Gunderson (Chair)
Lonny J. Carpenter
Lynn N. Ward
Michael R. McDonnell
OPERATING COMMITTEECOMPENSATION AND
TALENT DEVELOPMENT COMMITTEE

A. Scott Anderson (Chair)
F. Ann Milner
Lonny J. Carpenter
Rear Admiral (Ret.) Stephen C. Evans
James T. Hogan

Lonny J. Carpenter (Chair)
James T. Hogan
Fred Lampropoulos
David K. Floyd
Laura S. Kaiser

ENVIRONMENTAL, SOCIAL,AND GOVERNANCE COMMITTEE

F. Ann Milner (Chair)
A. Scott Anderson
David K. Floyd
Lynne N. Ward
Laura S. Kaiser

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

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
Alisha Jerauld. The council comprises senior representatives from Merit’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 the divisions,ChiefChief
OperatingOperating
Officer
Officerfunctions, and executive team.
ChiefChief
Operating
Chief
Chief
Operating
Officer
Operating
Officer
Officer
Operating
Officer

Neil Peterson

Alisha Jerauld

JoAnne Alkire

Jennifer Allan

Ricardo Alvarez

Mark Butler

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

Clay Creamer

George Frioux

David Lewis

Jim Mottola

Nicole Priest, M.D.

Jason Reber

Executive Vice President,
Manufacturing Finance& Strategy

Vice President
Global Real Estate & Facilities

Chief
Chief
Operating
Chief
Operating
Chief
Operating
Chief
Officer
Operating
Officer
Operating
Officer
Officer
Officer
Chief
Operating
Officerhief
Officer
Wellness
nessWellness
Officer
Officer

Chief
Compliance
Officer Executive Vice President
Chief
Chief
Compliance
Compliance
Officer
Officer
Chief
Compliance
OfficerChief
Wellness
Chief
Officer
Wellness
OfficerChief
Wellness
Chief
Chief
Wellness
Officer
Wellness
Officer
Officer
Officer
Officer
Officer

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

ChiefChief
Wellness
Chief
Chief
Wellness
Officer
Wellness
Officer
Officer
Wellness
OfficerChief
Wellness
Officer
Vice President,
Chief
Compliance
Chief
Compliance
Officer
Officer
Chief
Compliance
Chief
Chief
Compliance
Compliance
Officer
Officer
Officer

Global Research &Development

Operations

Sarah Comstock
Vice President, Global
Chief
Chief
Compliance
Compliance
Officer
Officer
ChiefChief
Compliance
OfficerCompliance
Officer
Communications

Mike Voigt

ChiefChief
Wellness
Wellness
Officer
Officer

Chief Human Resources
Officer
Officer
Officer
Officer
Officer

Officer
Officer
Officer
Officer
Officer11

Working with an external ESG consultancy, we identified
a list of topics informed by voluntary disclosure standards
and frameworks, leading ESG-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 58 senior Merit employees as well as
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 havea 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.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

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 of
our ESG profile, this year we conducted a comprehensive
materiality assessment.

Increasing
ImportanceMateriality 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 ESG

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

Environmental
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 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 climate change provides risks
and opportunities for Merit’s global organization.
Merit is considerate of the impact our business activities have. Our single-use medical devices
play a significant role in patient safety and outcomes, but even when disposed of properly,
they have an impact on the environment.
Our 2030 Operational Sustainability Targets demonstrate our commitment to reducing ourenvironmental impact. Our approach is based on making sound decisions, leveraging ourculture of innovation and continuous improvement to move beyond the status quo and consider
how we can do things differently. We engage with our employees, customers, and suppliers tounderstand how we can evolve our manufacturing, products, and distribution to achieve better
results for all.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

We care about being responsible and minimizing the long-term impact we may have on
future generations, but our focus on environmental improvements also makes business sense,
leading to efficiencies and, ultimately, financial savings.

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 climatechange and the emissions that contribute to it; therefore, energy efficiency and conservation
are key areas of focus for our business. We have made long-term commitments to reduce
our energy usage and our emissions as well as increase the use of renewable and carbon-freeenergy companywide.

13

By 2030, we have committed to decreasing our energy intensity (kWh/$ revenue) by 10%
or more and decreasing our 2030 GHG emissions intensity by 15% from our baseline
year of 2020.
Energy is a significant manufacturing input and cost within our global operations. We strive
to use energy efficiently and have worked to certify our largest manufacturing facilities to
ISO 50001 for energy management systems. Currently, five of our six largest sites hold ISO
50001 certifications with many sites being newly accredited in 2022.
We are confident that as we mature within these ISO systems, we will drive improvements
in our energy efficiency. We measure energy by units of joules consumed and measure GHG
emissions by carbon dioxide equivalent (CO2e) emitted. We measure intensity as units
consumed/emitted per dollar of revenue earned.
In comparison to our 2020 baseline year, we experienced a 12% increase in our total energy
intensity. Despite increases in energy intensity, we achieved a 35% decrease in Scopes 1 and
2 GHG emissions intensity due to our increased usage of renewable and carbon-free energy
over the past year. During 2022, our total energy usage was 270,273 GJ compared
to 201,513 GJ in our 2020 baseline year.
Our 2022 energy intensity was 0.2348 GJ/$KRev compared to 0.2091 GJ/$KRev in 2020.
Our 2022 Scope 1 GHG emissions were 3,069 metric tons (MT) of CO2e compared to2020 Scope 1 emissions of 2,837 MT of CO2e. Scope 2 emissions during 2022 were 13,524
MT compared to 17,480 MT in our 2020 baseline year. Total GHG emissions intensity in
2022 was 0.0144 MT of CO2e/$KRev compared to 0.0222 MT of CO2e/$KRev in 2020.
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 Salt Lake
City and Galway facilities, we promote the usage of electric vehicles by providing employeeswith on-site, electric vehicle charging stations. At our Tijuana facility, we operate our
employee transportation program to reduce emissions and encourage employee safety. We
contract 21 fuel-efficient buses to transport over 1,600 employees to and from the facility
each workday. These buses provide safe, efficient, and comfortable transportation for our
employees in Tijuana. During 2022, our employee transportation programs at these threelocations have resulted in a reduction of over 100 MT of CO2e.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

3,069

13,524

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.

270,273

0.2348Energy includes purchased electricity and fuelsconsumed by Merit-managed and operated
sites of more than 10,000 ft2.

We used 0.2348 GJ of energy forevery thousand dollars of revenue
earned in 2022.

0.014426%

MT CO2e
Scope 1 Emissions

GJ Energy
Consumed

MT CO2e

GHG Emissions Intensity
We emitted 0.0144 MT of CO2e
for every thousand dollars of revenue
earned in 2022.

MT CO2e
Scope 2 Emissions

GJ/$KRev
Energy Intensity

Energy from Renewable
and Carbon-Free Sources
We sourced 26% of our total energy
consumed from renewable and carbon-freesources in 2022.

By 2030, we have committed to decreasing ourenergy intensity (kWh/$ revenue) by 10% or moreand decreasing our 2030 GHG emissions intensity
by 15% from our baseline year of 2020.

14

Renewable Energy

In 2022, 26% 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.

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 target.
In 2022, 26% of Merit’s total energy usage came from renewable and carbon-free sources compared to 5% of totalenergy from renewable and carbon-free sources in our 2020 baseline year. We are actively engaging with our energy
providers to purchase more renewable and carbon-free energy where possible and have paid a premium to do so atseveral sites. In 2022, we also introduced solar panels at two of our distribution sites for the first time. This focus has
led to an increase in the use of renewable and carbon-free energy by approximately 6% from 2021.
In 2023, we plan to continue to purchase more renewable and carbon-free energy and explore opportunities to installsolar panels. We are also investigating the potential of carbon offset credits, given the large amount of energy requiredby our operations.

Climate Risk and Opportunity
Comprehensive risk and opportunity management is an integral component of Merit’s culture. Driven by a reviewof the Task Force on Climate-Related Financial Disclosure (TCFD) requirements by our Corporate Sustainability
Council, this year we have progressed the identification and assessment of our climate risk and opportunities.
Alongside measuring and decreasing our GHG emissions to reduce our exposure to transition risks, our EOMteam undertook a significant exercise to identify climate change risks at our manufacturing sites worldwide.
This climate scenario analysis used Climate Central tools to assess the physical effects of global temperature risesof 1.5°C and 3°C, helping us to understand how climate change could negatively impact our operations andidentify mitigation opportunities.
With that information, operations that are potentially exposed to significant physical climate risks have been evaluated,and multi-year response plans have been developed to increase our climate resilience. For example, we have developed
capital expenditure plans for 2023 and beyond for our manufacturing facility in Tijuana, Mexico, in response to futurewater risks, including a new water tower and water-reduction initiatives. At our water-stressed headquarters in Salt
Lake City, Utah, we have implemented water-usage reductions by investing in the xeriscaping of our large campus andinstalling cooling- and process-water recirculation systems within our water-intensive sensors operations.
The board currently has oversight of this process through the ESG Committee, Operating Committee, andperiodic reporting from the EOM program. We understand that clear and transparent disclosures are crucial for our
stakeholders, and we are working toward further alignment with TCFD recommendations in the coming years.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

15

Water
Water is one of our key environmental challenges and opportunities, and it is a resource we have committed tousing more efficiently.
We have worked to understand the impact of water use at each of our operating facilities and to enact 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 13% comparedto our 2020 baseline year
due to our investments inwater-efficiency initiatives.

Our 2030 Operational Sustainability targets include a 10% reduction in water consumption per dollar of revenue
earned. During 2022, our total global water consumption at sites more than 10,000 ft2 in size was 242,300 m3, an
increase of 8,474 m3 from our 2020 baseline year of 233,826 m3. Our water intensity decreased by 13% comparedto our 2020 baseline year due to our investments in water-efficiency initiatives.
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 a process-water recirculation project . We are presently pursuing a similar project in our Tijuana,
Mexico, facility, our second largest site for water consumption and a site where water scarcity risk has
been identified.

Water issues vary significantly depending on the operating location. In 2022, 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, aswell as some level of future risk” (waterriskfilter.org).
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)

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

16

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 andwater associated with the production of each device. The materials used in our devices are also under review as we try to find more ecofriendly alternatives or to improve their recyclability.

During 2022, werecorded savings ofapproximately 551,550
lb in eliminatedmaterials, includingboxes and film

In 2021, we began a multi-year project to reduce unnecessary packaging associated with our products by assessing how they areordered and used by our customers. In the first full year of this project, we have already seen strong results. During 2022, we recordedsavings of approximately 551,550 lb in eliminated materials, including boxes and film.
We have continued rolling out our eWORQ program, this year transitioning our operating lines in Tijuana from paper to electronic
work orders. This program began at our Salt Lake City Corporate Headquarters in 2019, and it has previously reduced the amount ofprinted paper within our production processes at that site. Once it is fully implemented at all our manufacturing facilities, we estimate
the eWORQ program has the potential to save millions of sheets of paper and thousands of plastic sleeves annually.

Recycling
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 2022, our global manufacturing facilities recycled more than 3,300 MT of waste produced by our operations.

During 2022, ourglobal manufacturing
facilities recycled
more than 3,300 MTof 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.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

17

Social
We are 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 our communities
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 all
employees feel 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 make positive changes and improve lives.

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

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

Health and Safety
Environmental health and safety (EHS) is a top priority for Merit, being overseen by our
ESG and Operating board committees. We have developed and adopted a range of policies,
systems, and tools designed to allow us to embed our culture of innovation within EHS todeliver for our people and the planet.
EHS 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.
This year we met our goal of achieving ISO 45001 certification at all our major manufacturing
sites. These certifications were supported by an increase in campaigns and training to drive
awareness and greater utilization of tools to identify and monitor incidents. Our ISO 45001
system is designed to identify hazards, assess risk within our processes, and mitigate risks18through procedures, training, and personal protective equipment. An important part of
our Occupational Health and Safety 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 theculture of safety as a top priority at Merit.
This work has been reflected by another year of improvement in our TRIR, which
reduced to 0 .7 in 2022 (2021: 0 .8) . We believe this is well below the US medical
device industry average and moves 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 EHS team.

Wellness
Improving employee quality of life, inside and outside of the workplace, is importantfor Merit. Healthy and happy employees create a positive work environment for all.
Employee wellness activity is driven by our Wellness Committee. Led by our
Chief Wellness Officer, it has a diverse membership from across company functions.
The committee meets monthly to develop, initiate, and provide leadership withrespect to our wellness calendar. Launched in 2022, the calendar was designed to drive
activities, learning, and events around a monthly health or well-being topic. Topics
covered this year included skin health, inclusion and diversity, and financial wellness.
Guest speakers hosted in-person and online events that were well attended andsupported by our teams.
A significant part of our wellness initiatives during 2022 remained dedicated to
managing the pandemic and its fallout, including a range of mental and physicalhealth issues affecting the global workforce.
We continue to operate on-site health clinics at our largest facilities located in Salt
Lake City, Utah, and Tijuana, Mexico. Our clinics are staffed with highly trained
medical professionals and offer a range of convenient services and treatments.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORTAt Merit Salt Lake City, employees continue
to benefit from our greenhouse and gardens.
Our farm-to-table emphasis allows for fruitand vegetables grown on-site to be used in thetwo cafés. Team members can use the space
to grow their own produce, and our U-Pickprogram encourages employees to pick produce
during the workday, which they can take home
for their personal consumption. Proceeds fromplant sales are donated to the Merit Candy Cane
Program, an initiative designed to assist families
in need during the holiday season. Across the2022 growing season, our employee garden
produced more than 5,000 lb of fresh produce.

19Other ongoing health-related activities at our Salt
Lake City facility during 2022 included a quarterly
mammogram bus and several blood drives. This year
we also joined the Centers for Disease Control andPrevention’s National Diabetes Prevention Program.
Our first group of 12 employees to complete theprogram saw great results.
In Merit cafeterias, we offer a free Healthy Choice
option each day, so employees can have easy access tonutritious meals. Approximately 700 employees per day
take advantage of this option.
During 2022, we organized a pilot walking programwith one of our employee teams. Team members were
given an extended break to walk or do yoga once a
week. Employees have reported feeling happier, moreengaged, and more connected to other employees.
There was strong retention across the team and nodecrease in productivity.
In 2023, our wellness calendar includes new topics andpreviously covered topics that were well received by
Merit employees. We intend to expand our walking andyoga program to more sites.

Diversity, 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.
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.
Women make up 27% of our board of directors.
Additionally, more than 36% of our management teamare women. Of our global workforce, 56% are female,and 66% of our team members come from diverse
minority backgrounds.
We have continued to develop our diversity andinclusion policies and initiatives during 2022, 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, in 2022 we brought theinitiative to the EMEA region. Led by women andopen to everyone, the group employs a comprehensive
program to cultivate employee engagement andretention by holding meaningful events that facilitate
both personal and professional development.
To provide oversight and encourage further progress, inearly 2023 we created a global Inclusion and Diversity
Council with representation from our senior leadership.
Its mission is to bring greater focus to our inclusionand diversity strategy, alongside further developmentof our successful initiatives to date. One example isthe opening of our first meditation room at our global
headquarters in Salt Lake City, offering a space for all
employees to have a quiet moment, meditate, pray, doyoga, or simply take a mental break.

27%

Women make upof our board of directors

36%

Women make upof our management teamOf our global workforce,are female

56%

66% of our team members comefrom diverse minority backgrounds

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT20

We had an 83% participation rate, and theresults showed that our people feel a strong
connection to our mission and are proud of
the quality of our products and services.

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 have createdglobal incentive plans that enable our employees to benefit from strong group performance.
In 2022, we partnered with Gallup and carried out our first global employee-engagement
survey to explore how our talent feels about the company, their teams, and their roles.
We had an 83% participation rate, and the results showed that our people feel a strong
connection to our mission and are proud of the quality of our products and services.
Additionally, employees feel Merit is a place where they can do what they do best, every day.
The feedback from our 5,000+ employees worldwide has led to 500+ local team actionplans. These plans include a new management development program, ELEVATE,
tailored to frontline managers in operations. In addition, we have made improvements
in recognition programs in our manufacturing sites. We have also invested in leadershipdevelopment within our commercial organization and our senior leadership. We continue
to hold quarterly town halls to ensure our team members stay connected and informed.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

21

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 PREP

Utah Clean Air (UCAIR)

Our corporate headquarters in Utahsupports many local charitableorganizations. Combining our passion
for Science, Technology, Engineering,and Mathematics (STEM) and helping
local youth, we continue to be a majorsponsor of Jordan PREP (Pre-freshman
Engineering Program), an annual six-weeksummer enrichment for middle school
students with an interest and aptitude in
STEM. Through courses, research, field
trips, and a state-wide STEM fair, theprogram aims to motivate and prepare
students for success in STEM fields.

Merit Medical is a proud supporter of
UCAIR. UCAIR is a statewide clean air
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.

Utah Food Bank
Each year our corporate office sponsors
an employee and vendor benefit golf
tournament where all funds raised arematched by Merit Medical. Over theyears we have donated to many different
charitable organizations. In 2022, we chose
the Utah Food Bank and raised money tosupport local families who may struggle
to put food on the table each day.

Mending Kids
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.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORTOur philanthropy activity is not limited to our immediate communities. Every year, ourGrant Committee oversees product donations to non-profit organizations on medical
missions. During 2022, we supported missions in Haiti, Honduras, Kenya, Nicaragua,
and Tanzania.
In 2022, we partnered with Mending Kids, a non-profit organization that provides freelifesaving surgical care to sick children worldwide. To improve pediatric cardiac carein Tanzania, where children face poor health and inadequate medical care, 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 clinicians and healtheducation to communities. Through its Heartbeats Tanzania Cardiac Mission, Mending
Kids has performed more than 120 lifesaving surgeries in the region since its inception.
Overall, 39 lives were saved in 2022 alone.

22

GovernanceIn creating sustainable value for our customers, investors, employees, suppliers, and communities, we strive for the highest
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
the whole organization as well as from our supply chain partners.

The board and its committees have an appropriate balance of relevant skills and diverse
experience, which reflects our markets and suitable independence to provide scrutiny andoversight of our executive leadership.

Board of Directors

Board Overview
Our board of directors is the highest governance body within our organization. It has theauthority and responsibility for overseeing our governance practices and for demonstrating
leadership in regard to achieving optimal economic, environmental, and social outcomes.
The board is supported by an effective corporate governance structure with specificresponsibilities delegated to five committees: Audit, Compensation and Talent
Development, Environment, Social and Governance, Finance, and Operating. Each ofthese committees has a written charter approved by the board and available at merit.com.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

Audit
Committee

Compensation
and Talent
Development
Committee

ESG
Committee

FinanceCommittee

OperatingCommittee

23Enterprise Opportunity Management

Business Continuity Management

Merit established its EOM program to support successfully
achieving the company’s corporate vision, values, and objectives.
As Merit’s Enterprise Risk Management program, EOM isaligned with the COSO Enterprise Risk Management and ISO
31000:2018 frameworks. The EOM team also manages Merit’s
Business Continuity Management System, in accordance withISO 22301:2019.

Merit is a complex global organization with varying disruptive risk
factors in different regions of the world. We maintain a BusinessContinuity Management System (BCMS) that has been rolled out toour sites worldwide in varying degrees to support crisis management,
business continuity redundancies, and disaster recovery planning.
We continue to drive BCMS procedures deeper and broader in ourorganization and perform periodic testing to enhance our readiness.

We recognize that risks and opportunities are present in all businessactivities. Effective management of risk is a critical factor in
maximizing organizational value to meet the expectations of our
stakeholders. The EOM program is designed to actively engage
executive leadership, with board oversight, in monitoring andmanaging critical corporate risks and opportunities trending in ourbusiness, the environment in which we operate, and identifying
emerging and future risks on the horizon.
In 2022, our board of directors delegated specific risk oversight
responsibilities to each of its committees based on the areas of eachcommittee’s responsibility. Our board of directors also implemented
enhanced EOM review practices and adopted new summary
reporting providing more comprehensive detail with respect to 14
tier-one risks.
As an integral element of Merit’s overall corporate governance, ourEOM program addresses a broad portfolio of risks that support
the ongoing continuity and sustainability of our organization. As
discussed above, our EOM team conducted risk assessments at
manufacturing locations around the world in 2022, examining
the potential threats and impacts of climate change. Many
additional environmental-related topics are included in our risk
portfolio, such as compliance with environmental and responsible
sourcing laws, product lifecycle environmental exposures, andsalient environmental impacts. We also consider social impacts
and the opportunities we have to enhance the trust of ourvarious stakeholders.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

Third-party Risk Management
We value the relationships we maintain with many third parties
who are an integral part of our success. We monitor and manage
our supply chain, assessing potential risks and defining elements
for risk mitigation to maintain a continuous supply of products toour customers. Third-party risks related to information technology
can come through disruption or data loss from technical service
providers or can result from cyber threats to Merit’s systems. We arecontinuously testing our infrastructure and cybersecurity programswith a strong focus on risk mitigation and data protection.

Compliance and Ethics

As Merit’s Enterprise
Risk Management
program, EOM isaligned with the
COSO Enterprise
Risk Management
and ISO 31000:2018
frameworks. The
EOM team also
manages Merit’s
Business Continuity
Management System,in accordance with ISO
22301:2019.

We are committed to a strong compliance and ethics culture.
Responsible business practices are essential to fulfilling our missionof saving and improving people’s lives. Corruption and unethicalconduct of any kind undermines our integrity and reputation andis contrary to our values and ambition for long-term success.
We demonstrate this advocacy by maintaining ethical andresponsible policies and practices and monitoring and enforcing
these policies throughout 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.

24All officers, directors,
and employees of Meritas well as qualifying
contractors complete
Code of Conduct
training delivered by
Human Resources upon
new hire and once
annually as a refresher.

We publicize the Merit
Medical ethics hotline,a system administeredby a third party, forconfidential andoptional anonymous
reporting of potential
or actual misconduct
without fear of
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 (FCPA), export and import regulations, advertisingand promotion laws, and applicable Sunshine/Transparency laws.
These control systems are overseen by Merit’s Chief Compliance
Officer, who reports regularly to an established Compliance
Committee and the Merit Board of Directors. All our complianceand ethics policies can be accessed at merit.com.
Merit administers compliance-related training programs for
employees at all levels of the organization depending on theirindividual roles. All officers, directors, and employees of Merit aswell as 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 the Sales and Marketing Department,
Regulatory Affairs, Medical Affairs, commercial sales attorneys in
the Legal Department, Accounts Payable Department, Customer
Service, members of Merit’s Grants Committee, and those 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 monitor and conduct risk assessments and audits tailored to
the nature of our business operations. We promote and enforce acompliance program consistently throughout the organization. We
publicize the Merit Medical ethics hotline, a system administeredby a third party, for confidential and optional anonymous reportingof potential or actual misconduct without fear of retaliation. All
hotline reports are immediately accessible by Merit’s Director ofInternal Audit, Chief Compliance Officer, Chief Legal Officer,
and the Audit Committee Chair. The Director of Internal Audit is

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

responsible for notifying the appropriate members of management
or the board that the case has been received and assigns the case to
those in management, Human Resources, and Legal, who will be
responsible for investigating and determining necessary actions. At
least quarterly, the Audit Committee is notified of all new cases andtheir status as well as actions taken for any cases not yet closed orthat were closed during the quarter.
Our progress on compliance continued in 2022. We haveapproved new iterations of our 12 compliance policies, bringing
a common look and feel to those documents. We have also
approved a policy for the United States to formalize our Sunshine
reporting procedures.
Also in the United States, we have developed and adopted a Field
Inventory Policy, setting standards for how sales representatives use
inventory when in the field. It tracks and verifies that inventory is
free of expired or recalled items and supports our compliance with
anti-bribery and anti-kickback regulations. Going forward, this willbe translated to other regions of the world and integrated into ourlearning management system.
We restructured and grew our compliance team in the Asia Pacificregion this year, including hiring a new Compliance Director in
Singapore. In EMEA, we have formed a new Privacy Council
led by the EMEA Compliance Director. It brings together teammembers from different geographies and functions to ensure our
global systems, policies, and processes follow the high standards set
by European regulations.
Looking ahead, we are rolling out a new software platform toscreen and monitor external third parties. It will bring more
automation to our process. We are also launching a new escalation
policy to formalize how we manage any administrative lapses our
employees make.

25

Affordability & Pricing

Quality Assurance

Our products are sold to multiple channels (direct and indirect) customers within several
global marketplaces. Merit’s pricing-change cadence in totality is consistent with the US
Federal Medical Device Price Index. The application of this pricing-change cadence isdependent based upon the terms of the legal framework of the pricing agreements we areengaged in. Regardless of the cadence, upon pricing changes, Merit customers receive written
notification of pricing changes and a corresponding list of updated pricing by-products.

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.

Supply Chain Management
When considering new and existing suppliers, our focus has historically prioritized quality
above all else, with quality 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. Developing an approach for understanding andaddressing ESG risks in the supply chain is a key area of focus. We monitor risks to our
supply chain and maintain redundancies, including but not limited to:

Our commitment to quality begins with our Quality Policy, as developed by a crossfunctional senior leadership team led by Fred Lampropoulos. Our Quality Policy is on
display throughout our facilities, has been translated into relevant local languages, andis attached to each employee’s security/access badge at the time of hire. Employees are
introduced to this policy at the time of hire and during annual training.
The Quality Policy is supported by a quality management system (QMS), which isdesigned to deliver innovative and quality 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 location.

• Finished goods are supported regionally with two to seven weeks of inventory on hand;

Quality Management Team• Critical services and materials are dual sourced where possible and reasonable; andOur independent Quality Assurance function establishes, monitors, and maintains the
QMS. The Merit Vice President of Global Quality Assurance also serves as the Global
Quality System Management Representative (GQSMR). The GQSMR has the authority/
responsibility to:• Supplies of critical raw materials and components are evaluated, and safety stocks aremaintained based on risk.
We perform a supplier audit once per year, asking our significant suppliers to complete
a self-assessment questionnaire about the ESG initiatives within their company. Modern
slavery and conflict minerals are both risks we take seriously across our supply chain, having
identified and considered our exposure on an ongoing basis as reported in our Conflict
Minerals Policy and Report and Modern Slavery Statement.

• Establish, implement, and maintain processes needed for the QMS and ensure it iscompliant with current Global Regulatory Requirements;• Report on the performance of the QMS and any need for improvement to executive
management and quarterly to the Operating Committee of 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. Each Merit operations location has adesignated quality leader who oversees quality assurance and acts as the appointed
QMS representative.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

26

completion with suitably trained audit team members. Actions
arising from these audits are managed through a Corrective andPreventive Action (CAPA) process. Learnings from audits areshared and, where practical, corrections are driven globally where
the potential of non-conformance exists in two or more sites.
We engage with various advocacy and trade association networkgroups (e.g., Quality/Regulatory/Sterility Assurance, etc.) aroundthe world. These encourage knowledge sharing with industry
peers, regulatory bodies, and learning institutions with respect
to regulatory expectations, implementation of regulations,
incorporating acknowledged state-of-the-art practices, andapplication of changes or new regulations for the betterment ofpatients and the environment.

Number of Audits in 2022

38
43
125
regulatory audits

customer audits

internal audits

Product Safety
Quality Compliance
Merit’s QMS is designed to closely align with the requirements of
ISO 13485:2016 for Medical 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 thesestandards, in addition to Medical Device Single Audit Program(MDSAP) Certification at our Global Medical Device Operations.
During 2022, Merit continued its independent assessment plan forcompliance with European Union Medical Device Regulation (EUMDR). All sites that hold legal manufacturing responsibilities havesuccessfully completed this assessment.
We welcome external and internal reviews and assessments of our
QMS in order to identify opportunities to be better. External
reviewers include regulatory agencies and customers, while
the assigned QMS representative at each site is responsible fordeveloping an annual internal audit schedule and coordinating its

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORTCreating high-quality, innovative products that are safe andeffective is our primary goal. Our focus on product safety
and performance starts with a process that rigorously defines
performance requirements, safety requirements, and user
requirements (inputs) into a physical design (outputs) to achieveintended use. The pathway between design inputs and design
outputs goes through an extensive risk management process, as
defined by ISO 14971 (Medical Devices—Application of Risk
Management to Medical Devices).
Design outputs and risk controls are verified to achieve safe medical
device products. Product use and performance are validated
through activities that are performed in a simulated or actual
clinical environment by trained clinical professionals or application
experts. Once validated, products are transferred to production
where all risk controls are properly implemented to realize safe
medical devices.
We are committed to improving products by the reduction ofresidual risks based on internal/external vigilance inputs to ensurethat products meet/exceed the commercial state of the art.

27

Product & Service Performance

Reactive Feedback

Once commercialized, product performance characteristics aremonitored through post-market surveillance (PMS) activities.

• Product customer complaints

Proactive Feedback
The 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 medical
devices. Learning gained from this feedback allows productsupport teams to continuously assess the safety and performanceof Merit devices so that we can deliver safe and effective medical
devices to communities across the world.
The EU MDR requires a PMS plan for each device. The FDA
has similar current Good Manufacturing Practice (cGMP)
expectations. Merit complies with these requirements by collecting
data through proactive post-market surveillance (PPMS) activities
and post-market clinical follow-up (PMCF) activities. Using thismodel, Merit has implemented a global harmonized PMS systemthat assesses device safety and performance across all regions andmarkets in which Merit devices are marketed.
The primary component of the PMS system consists of a PMCF
program that provides clinical and healthcare providers with theopportunity to anonymously provide clinical performance feedback
on Merit devices. Participants in this program are qualified andverified in the clinical field applicable to each device by a thirdparty program management organization. Practitioners provide
anonymous feedback, relating their experiences with device safety
and performance for those devices classified as IIa, IIb, and III(EU MDR). 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.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT• 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)• Product recall history for Merit products as well as similar/
equivalent products available• Product safety and performance as a measure of the volume
of product sold• Comparison of clinical research/clinical literature that is
pertinent to Merit products (and/or equivalent products inthe market)
Reactive performance metrics• Zero class 1 recalls

Reactive
Performance Metrics

00class 1 recalls

products listed
in the FDA’s
MedWatch database• Zero products listed in the FDA’s MedWatch database• Zero FDA enforcement actions• Zero fatalities because of Merit product performance(FDA MAUDE)
These activities monitor the totality of the risks presented throughthe typical use of a device (i.e., product risk profile) to ensure thatthe risk profile is not increasing over time. If safety or performance
signals are detected through the PMS system that indicate anincreased risk profile, the system is designed to drive corrections or
improvement to return to (or improve upon) the original approved
risk profile. The PMS system is a highly interactive safety andperformance monitoring process that leverages real-time, reactive,
and proactive quality data in combination with well-established,closed-loop, interdependent quality systems to monitor and report
product performance and safety throughout the product lifecycle.

0

FDA
enforcement actions

0

fatalities because of
Merit product performance(FDA MAUDE)

28

Delivery Performance
In addition to product performance metrics, delivery performance is also assessed bymeasuring delivery times, correct deliveries, and complaints.
We 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 2022. In addition,
approximately 97% of orders were delivered correctly the first time.

Supplier Quality Management
Our Global Procurement team manages over $230M 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.
Responsibilities and methods for the purchasing process are defined and controlled bydocumented procedures, thus ensuring that all purchased products and services conform tospecified requirements. 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 with the device, compliance with applicable regulatory requirements, supplierperformance, previous relationships, and Merit requirements. Suppliers are assessed andapproved 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.

We have consistently exceeded our goal ofdelivering products to the direct market within
three days or less of order placement, 92% of thetime during 2022. In addition, approximately 97%
of orders were delivered correctly the first time.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

2022 Direct Suppliers in Numbers

2273
DIRECT SUPPLIERS

44
COUNTRIES

98.7%
2022 FIRST-PASS(INCOMING QUALITY INSPECTION)

34
2022 SUPPLIER AUDITS

125
2022 SUPPLIER CORRECTIVE ACTION REQUESTS

29

Awards & Recognition
We believe true success happens when we challenge ourselves to grow and improve. We are proud to announce that during 2022, we were recognized for our growth and achievements byseveral notable organizations. Each award received is a testament to our mission of improving the lives of people, families, and communities throughout the world.
Newsweek Most Responsible Companies 2023
Merit received recognition by Newsweek as one of America’s
Most Responsible Companies 2023. We are thrilled tohave our performance recognized and intend to build upon
our momentum.
Top Employer 2022: China
Our Beijing facility was named a Top Employer 2022 by
the Top Employers Institute. We are honored that ourpeople-first culture was recognized, where all employees arevalued and encouraged to reach their full potential. Meritemployees are our greatest asset.
Utah Business Corporate Counsel Award:
Brian G. Lloyd, CLO
Congratulations to Brian G. Lloyd, Merit Medical Chief
Legal Officer and Corporate Secretary, for receiving the
Corporate Counsel Award from Utah Business, an award
that recognizes exceptional in-house business counselors.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORTMy Green Lab Certification: Merit Ireland R&D
Merit Ireland’s R&D lab went green in 2022. Locatedin Galway, it is the first lab in Ireland’s medtech industry
to be certified by My Green Lab, a program considered
the international gold standard in lab sustainability
best practices.
2022 Supplier Legacy Award
Awarded to Merit by Premier Inc., Merit received the2022 Supplier Legacy Award, a prestigious recognition
for suppliers that consistently provide the highest levelsof partnership, customer services, value creation, clinicalexcellence, and commitment to lower costs.
Honorary Adjunct Professor, College of Scienceand Engineering, NUI Galway: Fred Lampropoulos
Congratulations to our President & CEO, Fred
Lampropoulos, on his appointment as an Honorary
Adjunct Professor with the College of Science andEngineering at NUI, Galway. This award is in recognitionof Merit’s partnership with the university as well as its youth
academy program. We are proud to collaborate with andencourage STEM students through team projects within
the science and engineering departments at NUI.

2022 Manufacturing Leader of the Year:
Fred Lampropoulos
Awarded for excellence and tremendous efforts made by
outstanding leaders and companies in the state of Utah,
the 2022 Manufacturing Leader of the Year was awarded
to Merit’s President and CEO, Fred Lampropoulos. “I
am honored to accept this award on behalf of the entire
Merit family. This award recognizes their hard work anddedication,” said Fred upon receiving the award.
National Irish Safety Organization (NISO)
Safety Awards: Merit Ireland
The NISO Awards have become Ireland’s premier safety
awards for companies that showcase the health and safety
performance of their business. Winning a NISO Awarddemonstrates the positive and proactive culture of safety
management that exists within a business. Congratulations
to Merit Ireland for their outstanding performance inkeeping safety first.

30

Report Parameters
This report has been prepared using GRI and SASB standards, which are disclosed and referenced within the report and the GRI and SASB
Indices. We have followed GRI and SASB 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, 2022.
For this 2022 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 Merit-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 ESG-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, as 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 Merit-controlled operating locations that are greater than 10,000 ft2. This includes
eight manufacturing locations and seven distribution/sales locations. During 2021, we began reporting our total energy usage in units ofjoules instead of kilowatt hours to better align with GRI reporting standards.
Intensity is measured as a given metric divided by the total yearly net revenue dollars earned.

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31

GRI Index
GRI Standard

Disclosure

Location

2-9

Governance structure and composition

2022 Sustainability Report, Governance and Board Overview, pg. 20
2023 Proxy, Pg. 13

2-10

Nomination and selection of the highest governance body2023 Proxy, pg. 5

2-11

Chair of the highest governance body2022 Sustainability Report, Governance and Board Overview, pg. 20
2023 Proxy, pg. 13

2-12

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

2022 Sustainability Report, Governance and Board Overview, pg. 20

2-13

Delegation of responsibility for managing impacts

2022 Sustainability Report, Enterprise Opportunity Management, pg. 22
Annual Report (10K), pg. 22

2-26

Mechanisms for seeking advice and raising concerns

Business Conduct Hotline Data Protection Notice

General Disclosures

GRI 201: Economic Performance
201-2

Financial implications and other risks and opportunities due to climate change

2022 Sustainability Report, Enterprise Opportunity Management, pg. 20

GRI 305: Emissions
305-1

Direct (Scope 1) GHG emissions

2022 Sustainability Report, Our 2030 Targets and Progress, pg. 7

305-2

Energy indirect (Scope 2) GHG emissions

2022 Sustainability Report, Our 2030 Targets and Progress, pg. 7

305-4

GHG emissions intensity

2022 Sustainability Report, Key Figures at a Glance, pg. 4

305-5

Reduction of GHG emissions

2022 Sustainability Report, Our 2030 Targets and Progress, pg. 7

302-1

Energy consumption within the organization

2022 Sustainability Report, Key Figures at a Glance, pg. 4

302-3

Energy intensity

2022 Sustainability Report, Our 2030 Targets and Progress, pg. 7

302-4

Reduction of energy consumption

2022 Sustainability Report, Key Figures at a Glance, pg. 4

GRI 302: Energy

GRI 303: Water and Effluents
303-5

Water consumption

2022 Sustainability Report, Key Figures at a Glance, pg. 4

GRI 401: Occupational Health & Safety
403-1

Occupational health and safety management system

2022 Sustainability Report, Health & Safety, pg. 15

403-2

Hazard identification, risk assessment, and incident investigation

2022 Sustainability Report, Health & Safety, pg. 15

403-3

Occupational health services

2022 Sustainability Report, Health & Safety, pg. 15

403-4

Worker participation, consultation, and communication on occupational health & safety2022 Sustainability Report, Health & Safety, pg. 15

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32

GRI Standard

Disclosure

Location

403-5

Worker training on occupational health and safety2022 Sustainability Report, Health & Safety, pg. 15

403-6

Promotion of worker health2022 Sustainability Report, Wellness, pg. 16

403-8

Workers covered by an occupational health and safety management system

2022 Sustainability Report, Health & Safety, pg. 15

GRI 416: Customer Health and Safety
416-2

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

2022 Sustainability Report, Quality Assurance - Reactive Feedback, pg. 26

GRI 405: Diversity and Equal Opportunity
405-1

Diversity of governance bodies and employees

2022 Sustainability Report, Diversity, Equity & Inclusion, pg. 16

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 programs2022 Sustainability Report, Philanthropy, pg. 18

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

2022 Sustainability Report, Compliance & Ethics, pg. 21

GRI 206: Anti-Competitive Behavior
206-1

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

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

Annual Report (10K), pg. 37 “Legal Proceedings” with reference to Note 10“Commitments and Contingencies” to consolidated financial statements initem 8 of the report.

33

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 for eachproduct is disclosed to customers or to theiragentsMerit’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. Regardlessof the cadence, upon pricing changes Merit customers receive written notification ofpricing changes and a corresponding list of updated pricing by products. For more
information, see Affordability & Pricing on pg. 23.

HC-MS-250a.1

Number of recalls issued, total units recalled

Zero Class I Recalls. For more information, see Quality Assurance on pg. 24 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

Zero products listed. For more information, see Quality Assurance on pg. 24 and FDA
MedWatch database.

HC-MS-250a.3

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

13 fatalities in FDA MAUDE database but none attributed to failure of products. For
more information, see Quality Assurance on pg. 24 and 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 pg. 24(https://www.fda.gov/about-fda/cdrh-transparency/cdrh-transparency-compliance-enforcement).

HC-MS-270a.1

Total amount of monetary losses as a result oflegal proceedings associated with false marketingclaimsMaterial 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 pg. 17 of Merit’s Code of Conduct and Ethics.

Affordability and Pricing

Product Safety

Ethical Marketing

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

Disclosure/Explanation

34

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 pg. 13.

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 pg. 14.
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 productquality

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
2022, Merit conducted 42 supplier audits. See Supply Chain Management on pg. 23
and Supplier Quality Management on pg. 27 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 pg. 27
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 pg. 23.

INNOVATING THE FUTURE | 2022 SUSTAINABILITY REPORT

35

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 health care 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 pg. 21 and Merit’s Compliance website.

Business Ethics

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36

merit.com