SUSTAINABILITY REPORT

Tempo Scan’s (“the Company”) support to the Sustainable Development Goals (SDGs) has been carried out through various program and initiatives integrated with policies and procedures relevant with industry sector where the Company operates. The initiatives are as explained hereunder.

Goal SDG 1: No Poverty

The Company’s CSR targeted to underprivileged community is 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.

Goal SDG 3: Healthy Life and Well-being

  • During the COVID-19 pandemic that was still occur in 2022, sanitation and hygiene activities in the workplace still be carried out more stringent and continuously. The activities among others conducting thorough sanitation and spraying disinfectants, providing sufficient hand washing facilities and hand sanitizers, providing proper personal protective equipment for all employees, conducting mandatory self-assessment and body temperature checking prior entering the working area in any of the Company’s facility. As part of the effort to suppress the COVID-19 contagion in the working location, the Company keeps conducting rapid test antigen (RTA) on a regular basis and followed-up PCR test if necessary. These activities are part of our COVID-19 Prevention and Handling Procedure called P3C, which applied to all employees and all visitor to in all Company working areas.
  • Aside from the above, 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 togetherness with the “musholla” painting activity together so that Muslim people feel comfortable while doing prayers.
  • 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.

Goal SDG 4: Quality Education

  • The Company is continuously implemented the training program designed to all employee in order to meet demands of increasingly complex tasks or assignments planned and executed in regularly basis throughout the year. The training program includes technical training according to employee work functions, managerial and leadership training and other topics.
  • The Company also continues the training program called Management Trainee (MT) program is designed to fresh graduates joining the Company. The program is aimed these fresh graduates to comprehend the business process as a whole.
  • The Company also provides certification training in accordance to applicable regulations for employees who carry out certain tasks that require certain certifications, among others certifications related to Work Safety and Health and the environment (K3L) and product quality.
  • Aside from the training program as described above, the Company continues the training program for vocational and university students through apprenticeship. This program initiated from the Company’s awareness that th fresh graduates from vocational study or from university in general do not have sufficient skill set to run a job, the Company is committed to contribute in filling these skill gaps by conducing training to vocational or university students through apprenticeship.
  • A midst the COVID-19 pandemic that was still occur in 2022, the training program was carried out by various media, including through online training to minimize the risk of COVID-19 transmission, through broadcast articles and face-to-face training if it is technically required to do so.

Goal SDG 5: Gender equality

Support and implementation of gender equality in the Company is reflected in the representation of the composition of the number of women employees that are equivalent with the number of men employees.

Goal SDG 6: Clean Water and Sanitation

As part of the water conservation program, water management for the production process and for factory domestic purposes 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 procedures 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 procedure 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 machinery, water effluent from the final rinsing in the CIP which is still clean can be used to conduct prerinsing 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. The Company 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, the Company 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.

Goal SDG 7: Affordable and Clean Energy

The energy used for the daily business operations among other production process and administrative activities in each manufacturing site are monitored continuously 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 assessment 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 requirement. 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.

Moreover, 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 conventional electrical motor to the new motor equipped with the frequency converter which has started gradually, allowing further reduction of the electricity 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 manufacturing 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 the Company.

Goal SDG 8: Decent Work and Economic Growth

  • The Company has provided decent work and income for its 4,510 employees throughout Indonesia and has participated in contributing to Indonesia’s economic growth as reflected in the Company’s impressive 2022 financial performance achievement.
  • The Company’s concern for the surrounding community in terms of empowering community resources, among others, by employing local workers for activities in the factory and branch office areas and handing over non-B3 waste processing activities to cooperatives or communities around the Company industry. In addition, The Company also empowers Small – Medium Enterprises (UMKM) as suppliers of goods and services within the Company while still adhering the implementation of good corporate governance.
  • In addition, the Company also contributes to the people’s economy through its distribution division, where this division works together with traders and retailers to reach the consumers throughout Indonesia. These traders and retailers mostly are small and medium enterprises (UMKM).

Goal SDG 9: Industry, Innovation, and Infrastructure

The production and marketing of highquality products produced by the Company 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 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), serta Cara Distribusi Obat yang Baik (CDOB) and are continuously upgraded to latest Good Manufacturing Practices (GMP).

In addition, infrastructure development to support business growth is also continuously carried out, including to increase production and distribution capacity in the midst of the COVID-19 pandemic.

Goal SDG 10: Reduce Inequalities

  • The Company is open to anyone in recruiting prospective employees on an equal basis. The acceptance is based on skill and competency evaluation result and it has to match with the job requirement regardless of gender, ethnic, religion, social status or physical conditions, since the Company believes that human beings are created equal; therefore, they should have an equal access to job opportunities without any discrimination.
  • The Company does not have specific policies regarding the recruitment of local manpower. However, the Company keep prioritizing to recruit employees from the local areas as long as they meet the requirements and specifications.

Goal SDG 12: Responsible Consumption and Production

  • With the status of the global pandemic COVID-19 still in effect, the Company continues to implement health protocols and take various preventive measures to protect the wellbeing of its employees and their families.
  • As a manifestation of the Company concern for the health of all employees, the Company provides facilities in the form of clinics and doctors. The clinics and doctors are intended as primary care in case of incident happen during the working hours before further treatment needed to hospital or other medical installation.
  • During the third year of COVID-19 pandemic, in 2022 the Company has tightened health procedures for all employees and visitor, among others:
    1. To create COVID-19 response team.
    2. To follow government regulation regarding social activities limitation (PPKM).
    3. To enforce the use of medical masks at all time to all employee and visitor.
    4. To perform regular sanitation and disinfection.
    5. To provide sufficient hand washing stations and hand sanitizers.
    6. To enforce filling of COVID-19 health check and conduct temperature checks prior entering working area.
    7. To provide and enforce sufficient physical distancing.
    8. To perform regular rapid test antigen (RTA).

Goal SDG 13: Climate Action

As the Company’s commitment to reduce waste and pollution, the Company has implemented an operational system that reduces paper usage, among other in the process of order taking from its customers, the process is using paperless ordering system that use mobile application, where the orders are submitted by the sales team into this application called TiMOS and thereafter the orders are processed directly into the computer system at the head office which is directly connected to the company’s warehouses for further processing.

In the warehousing management system which includes warehousing activities, i.e. loading and unloading, receiving and picking, checking, issuance of goods, loading onto trucks, cycle count and stock take are using a paperless computer system.

Also, in the execution of tasks of marketing and sales teams in the field, their activities are planned, recorded and monitored using a mobile system that is connected directly to the computer system at the head office without any paper.

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 unlimitedly.
  • 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 cannot be used within the Company 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.

Goal SDG 17: Partnerships For The Goals

  • The Company establishes mutually beneficial partnerships and respects each other’s rights and obligations with principals, suppliers, vendors and all other stakeholders to achieve the Company goals.
  • As a form of the Company’s partnership with the community in terms of empowering community resources, among others, by employing local workers for activities in the factory area and handing over non-B3 waste processing activities to cooperatives or communities around the Company industry.