CORPORATE SOCIAL RESPONSIBILITY AND ACTIVITIES

As a manifestation of Tempo Scan’s Core Values of Honesty, Equality, Usefulness, Responsibility and Perseverance which have always been upheld and brought up Tempo Scan for over 69 years, PT Tempo Scan Pacific Tbk (“Tempo Scan”) has transpired it into establishment of Corporate Social Responsibility (“CSR”) Center since 2011.

Tempo Scan is committed to continuously enhance its CSR programs from time to time in-sync with government of Indonesia’s ambition to build better quality of life together with all stakeholders by systematicly built-in it’s the CSR program within its business activities.

 

Environments

Tempo Scan continously implements programs that contribute to the environment protection efforts, among others:

1. Efficient & Environment friendly energy consumption

The energy used for the daily business operations among other production process and administrative activities in each manufacturing site are monitored constinously to ensure its efficient and effectivity. The main energy source used are electricity power supplied by state owned company or other private utility company; and natural gas which are more environment friendly compare to diesel. The energy saving efforts at each manufacturing site have implemented and are measured and monitored daily as part of the manufacturing management key performance indicator (KPI). The targets in the KPI are determined with the principle of continuous improvement and should be improved from time to time.

The activities within the energy saving among others are activities related to equipment condition assesment and improvement at various manufacturing area, improvement on overall equipment efficiency (OEE), improvement on planning and coordination across the manufacturing department and improvement on personnel aspect covering competency and behavior.

Some example of activities resulting in improvement of energy saving in 2022, firstly in the area of production operations, significant improvement of the OEE across the manufacturing sites which mean the production volume were executed with less resources. Secondly in steam consumption, improvement of energy used for steam by further reducing condensate losses, amount of the condensate returned to the boiler system were increased, which resulting reduction of make-up water which need more energy to heat-up ambient temperature of the make-up water. Also fine-tuning of the steam pressure at the steam generator after a thorough study to most optimum level was also contributing to the reduction of the heating energy requirment. Thirdly, improvement of the compressed air system, by addressing the leaking and adjusting the pressure to optimal level which were resulting the air compressor system run less frequent.

Morevoer, in the area of HVAC system, the improvement done by changing the cooling system originally used an “air cooled chiller” to a “water cooled chiller”; use of a “thermal storage tank” so that the cooling performance of HVAC becomes more efficient; and optimization and balancing of air pressure between rooms through the building automation system (BAS) which automatically control and adjusting the temperature, humidity of air in the production buildings. Replacement of the convetional electrical motor to the new motor equipped with the frequency converter which has started gradually, allowing further reduction of the electrity consumption.

Furthermore, in the area of lighting, replacement of tube lamp (TL) to light emitting diode (LED) has conducted continuously in stages. In terms of people behavior, energy-saving campaigns were conducted in a broad way to touch all employees and all manufactuirng sites. And application of renewable energy, the Manufacturing Division has started in using solar cell panels (Solar PV) for preheating heating of the boiler feed water as pilot project and will continue to evaluate this Solar PV for further energy source within Tempo Scan.

2. Water Conservation

Water Management:

As part of the water conservation program, water management for the production process and for factory domestic purpose are carried out in accordance with the 3R principles (Reduce, Reuse and Recycle).

The first R which is reducing water consumption is carried out through various efforts such as maintaining the water pipeline to prevent leakage, fine-tuning the cleaning procdures of production equipment during the cleaning in place (CIP) or during off-line cleaning to use less water whilst keeping the cleaning effectivity level. The fine tuning has conducting in a systematic approach, such as adjusting the CIP computer program, establishing and testing a refined cleaning standard operating procedures (SOP) and conducting validation prior the new cleaning procudre is effectively implemented. Reduction of water consumption also impacted by the people behaviour, henceforth conducting training and awareness through campaigns on water-saving for all employees have also started in regular basis.

The second R which is reuse the water, it is conducted among others by adjusting the washing SOP within the production machinary, water effluent from the final rinsing in the CIP which is still clean can be used to conduct conduct pre-rinsing stage in the CIP.

The third R, which recycle water. The effluent from the cleaning in production process or from domestic use are channelled to the waste water treatment plant (WWTP) to meet the relevant regulation. Tempo Scan has already started to further treatment of the effluent of the WWTP to meet standard for the general reuse among other for gardening purposes.

In addition, Tempo Scan has implemented infiltration wells in manufacturing sites to collect and preserve rainwater as part of the water conservation program.

Furthermore, the water consumption target is determined as one of the operational KPI, where thes target should be more stringent from year to year to encourage continuous improvement.

3. Waste Management

Waste resulted from business operations also has also been following the 3R principles.

The first R, reduction of waste among other has consistently done in each manufacturing site by increasing production yield, which means reducing the amount of material waste. The use of plastic packaging in production process has gradually reduced by using stainless container that can be reused unlimitly.

The second R, reuse of packaging material, among others carton boxes to transport packaging material from packaging plants to production plants has been continuously used with strict procedures.

The last R, recycle is done working with vendor. For packaging materials, such as carton box, plastic drums, paper drums, and others that can not be used within Tempo Scan manufacturing activity and have been evaluated strictly as commercial value are sold to reprocessing companies through certified vendors.

Meanwhile, for hazardous waste are collected in appropriate temporary storage, transported and futher process by a certified company.

4. Mechanism of environmental complaints

Tempo Scan has implemented mechanism for regulating environmental complaints which is regulated in the provisions of the Internal and External Communication Procedures for K3 (Work Safety and Health), which states that “External Communication on Work Safety and Health (K3) and environmental protection are all forms of delivery or exchange of information between Tempo Scan and the parties outside the company with an interest related to the Work Safety and Health (K3) Management System”. Since 2021, at the factory location in the manufacturing site, a Safety Health & Environment (SHE) function has also been formed which consistently maintains relations with the authorized agencies to improve environmental management performance.

5. Certification/Permit in the field of environment

Tempo Scan already has certifications/permits related to environmental management in accordance with applicable regulations. In 2022, Tempo Scan maintains the fulfillment of the company’s commitment to always conduct environmental management, which is stated in the Company’s Environmental document; in particular the commitment to comply with all laws and regulations related to the environment, make continuous improvements, use resources effectively and efficiently and implement the 3R (Reduce, Reuse, Recycle) program.

 

Labor, Work Health and Safety Practices

1. Equality in Job Opportunities

Tempo Scan is open to anyone in recruiting prospective employees on an equality basis. The acceptance process is carried out by prioritizing the results of the competency evaluation and compliance with the required job qualifications regardless of gender, ethnic, religion, social status or physical conditions, since Tempo Scan believes that human beings are created equal; therefore, they should have an equal access to job opportunities without any discrimination.

2. Work Facilities and Safety

Tempo Scan provides safe facilities and safety equipment in carrying out its operational activities, in accordance with prevailing rules and regulation pertaining in health, security, and work safety and preserve the environment. Continuous improvement to create safe work facilities is in line with a continuous process of risk analysis and field inspection processes as well. All aspects of work safety have articulated in the Company’s Standar Operating Procedure for daily implementation to ensure good and proper work practices in accordance with the law.

3. Work Accident Rate

Occupational Safety and Health (K3) aspects are important elements in work procedures that cover occupational health, work safety and protection. In 2022, Tempo Scan keep going to conduct K3 socialization and training activities with the aim to ensure safe work behavior from employees with targeting of zero work accident.

4. Education and Training

The development of employee skill & competence and their potential has carried out at regular basis to ensure the sustainability of the Company’s performance. Based on the mapping of training needs, throughout 2022, Tempo Scan has carried out its own education and training program internally as well as external training by third party, with a total of 1,660 times for all employees, from staff level to manager level covering all topics relevant to the training needs.

5. Labor Complaint Mechanism

Tempo Scan has a mechanism for labor complaints, regulated in the Procedure of Employee Dispute Resolution in the event of problems or disputes between employees and the Company or those regarding the rules to follow.

 

Social and Community Development

1. Use of Local Manpower

Tempo Scan does not have specific policies regarding the recruitment of local manpower. However, TempoScan keep prioritizing to recruit employees from the local areas as long as they meet the requirements and specifications for the positions.

2. Local Community Empowerment

As a form of concern to the local community Tempo Scan empowers the local resources by employing local manpower for activities in the factory areas and handing over the non- Hazardous waste processing activities to the local cooperatives or communities around the factories. In addition, Tempo Scan also empowers Small - Medium Enterprise (SME) as suppliers of goods and services within Tempo Scan while still adhering the implementation of good corporate governance.

 

Concern for people in need

Tempo Scan Group’s concern to the community by various activities with a total value of Rp 4.9 billion, as a manisfestation of its Core Values of “Responsibility” & “Usefulness” to the Nation and the Republic of Indonesia, comes in various activities such as follows:

1. bodrex Merah Putih Beraksi

During 2022, COVID-19 pandemic was slightly recovering and getting in control, wherein in April 2022, stepping into the holy month of Ramadan, government began to allow people to return to the mosque for praying. Seeing that opportunity, bodrex was moved to hold CSR activity “bodrex Merah Putih Beraksi” with the objective of restoring the spirit of the Indonesian people to rebuild their territory by promoting the spirit of unity and togethernesswith the “musholla” painting activity together so that Muslim people feel comfortable while doing prayers.

2. hemaviton 45th Anniversary

hemaviton also held CSR program by distributing thousands of Paket Sehat hemaviton multivitamin for SPGs and frontliners throughout Indonesia for their dedication to promote hemaviton products. Furthermore, thousands of hemaviton C1000 products were also distributed to Ojek Online partners across several areas of Sumatra, Java, Kalimantan, Bali Nusra and Sulawesi. hemaviton hopes that this activity can support health and immunity in order to achieve #HealthyLivingHappyLife.

3. vidoran Berbagi Kebaikan

vidoran also held Corporate Social Responsibility (CSR) program to support Indonesian Children becoming #SiapJadiKuatdanCerdas. vidoran distributed vidoran Xmart Soya 1+ milk to thousands of orphans in Indonesia. By providing nutritional product support to these children, they can obtain nutritional intake with an ImunUp formula enriched with Cod Liver Oil, vitamins C, D3, E, Zinc, DHA (Omega 3&6), and minerals.

 

Responsibility for Goods and/or Services

Tempo Scan has always hold to the core values of Responsibility and Usefulness in creating and developing products that meet the needs of and are safe for use by consumers.

The production and marketing of high-quality products produced by Tempo Scan is in accordance to standards issued by National Agency of Drug & Food Control or Badan Pengawas Obat dan Makanan (BPOM), Ministry of Health or other regulatory agencies. The production processes and its facilities are in accordance to the standards of good manufacturing practices such as Cara Pembuatan Obat yang Baik (CPOB), Cara Pembuatan Obat Tradisional (CPOTB), Cara Pembuatan Kosmetik yang Baik (CPKB), Cara Pembuatan Alat Kesehatan yang Baik (CPAKB), Cara Produksi Pangan yang Baik (CPPB), Cara pembuatan Produk Perbekalan Kesehatan Rumah Tangga yang Baik (CPKRTB), and Cara Distribusi Obat yang Baik (CDOB) which are continuously upgraded to latest Good Manufacturing Practices (GMP).

Information regarding product and services from Tempo Scan can be accessed by shareholders, stakeholders, and public through the Tempo Scan website: www. temposcangroup.com. For more comprehensive information is also provided via email to corporate.secretary@thetempogroup.com. This e-mail address is also provided to accommodate and retain feedbacks and complaints from customers or they may also contact Tempo Scan Cares for Consumers at telephone number 0800-150-8888.