CEO’s Message on Sustainability – Preservation of Trust that has been Built and Fortified over the Years

Dear Stakeholders,

Listed on the Singapore Exchange since 1969, Haw Par is one of the earliest established public companies in Singapore. Central to our management doctrine in the day-to-day running of our business, is our uncompromising preservation of trust that has been built and fortified over the years. The conduct of business in a proper, sustainable, accountable and ethical manner thus comes second nature to our Board and Management.

Wee Ee Lim
President & CEO
Haw Par Corporation Limited

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CEO’s Message on Sustainability – Preservation of Trust that has been Built and Fortified over the Years

Dear Stakeholders,

Listed on the Singapore Exchange since 1969, Haw Par is one of the earliest established public companies in Singapore. Central to our management doctrine in the day-to-day running of our business, is our uncompromising preservation of trust that has been built and fortified over the years. The conduct of business in a proper, sustainable, accountable and ethical manner thus comes second nature to our Board and Management.

As the global business community embraces sustainability reporting as a new regulatory requirement, we are heartened upon review of the standards that our long-standing modus operandi have been largely consistent with the expectations of a responsible corporate citizen. We are pleased to share with our stakeholders a perspective of our sustainability efforts through our sustainability reports.

It is noteworthy that Haw Par is not a single-business entity. With our key businesses focused on Healthcare operationally and in Investment by asset base, along with management and control being based in Singapore, we opine that a report revolving the activities in Singapore of these two business divisions will provide a representative picture of the Group’s endeavours on business sustainability.

With a solid asset backing through our equity holdings coupled with our reserves accumulated from our earnings, we have a strong balance sheet to make substantial investments. One of the sources of growth pursued by Management is business acquisition. Drawing on our core competence, we desire acquisitions to which we would be able to add value. Investment consideration takes into account a holistic view of criteria under the stewardship of the Investment Committee that ensures multi-faceted parameters of an investment have been evaluated. We believe our disciplined and calculated approach to investing would enable us to continue to generate shareholder values.

In the operation front, Tiger Balm, with a heritage of over 100 years behind the brand, continues to gain popularity in its key markets while more products are being introduced across the geographies, as demand emanates from diverse segments of consumers experiencing muscular aches and pains for different reasons. Long trusted for its quality, safety and efficacy to our consumers, the trust in the equity of the brand is non-negotiable as we safeguard against any possible brand equity erosion in a growing global consumer healthcare market where competition is a given trait.

The pharmaceutical industry is regulated by health authorities the world over and by international conventions, with increasing stringency imposed on product registrations, manufacturing, quality assurance and marketing authorisations. While these complicate processes, lengthen product development cycles, push back product launches and increase costs, we are closely guided by governance and compliance requirements that are inherent in the industry and our internal processes, e.g. GMP and ISO certifications. This ultimately translates to benefiting our consumers’ health and well-being with superior products through our continual product development and efforts toward wider presence and deeper market penetration.

Transcending our beliefs in the goodness of Tiger Balm to serve the community, we promote sports as a health enabler. Tiger Balm partners distributors to bring sports to everyone – trail marathons in Thailand and various sporting events in Singapore, France, Germany, USA, and India among others.

In Singapore, Haw Par has adopted the Singapore Disability Sports Council (SDSC) as our charity partner since 2015. As the national sports body for para sports, SDSC provides opportunities for people with special needs to participate in sports at both recreation and competitive level. Our annual sponsorship over the years has contributed to the growth of para sports in Singapore, enabling more to live healthier, active lives.

We are where we are today because of our staff. We recognise our employees as our most vital assets and a key stakeholder group. We are committed to fostering a fair and equal opportunity workplace, one that is built on merit and based on progressive HR practices, by hiring, assessing and rewarding employees on merit, skills, experience and ability to perform the job. Just as we promote health and well-being of our consumers, so too, we care for our employees’ physical and mental well-being.

Wee Ee Lim
President & CEO
Haw Par Corporation Limited

Contributions to United Nations Sustainable Development Goals

Delivering health and wellness to communities in which we operate is the focus of our initiatives to contribute to the society. We continue with our heritage of providing Tiger Balm products to those in need.

We believe that no one should be constrained from leading an active life, and sport is a force for wellbeing and empowerment. Since 2015, Haw Par has been supporting athletes from Singapore Disability Sports Council. Going beyond sponsorship of broad based competitions, Haw Par introduced a Sports Bursary in 2018 to help financially-marginalised athletes to sustain their sports development, enabling more to live healthier and active lives.

We recognise that healthy communities do largely depend on a healthy planet, which is in turn dependent on healthy ecosystems with rich biodiversity. Haw Par is a supporter of the United Nations Decade on Biodiversity 2011-2020 and our Blue Mission at Underwater World Pattaya aims to inspire, educate, conserve. As the tiger and leopard, listed among the most endangered species on Earth, are the namesakes of Haw Par and our company founders, we have been sponsoring the Malayan Tiger Exhibit and the Leopard Exhibit at the Night Safari and the Singapore Zoo since 1995 and 1986 respectively.

The United Nations adopted 17 Sustainable Development Goals in 2015 to achieve sustainable development for all by 2030. Haw Par contributes to five of the goals.

Sustainability Governance

The Sustainability Steering Committee consisting of senior management and led by the CEO champions sustainability efforts and priorities at the Group.

The SSC reports to the Board, which has specially considered sustainability issues as part of its strategic formulation, and determines the Environmental, Social and Governance ("ESG") factors identified as material to the business of the Group.

The Board oversees the management and monitoring of these ESG factors.

Corporate Structure

Materiality Analysis and Material Issues

A Sustainability Steering Committee was formed in 2017, comprising senior representatives from different business units and functions including Internal Audit, led by the CEO, to address all sustainability issues concerning the Group.

As a first-time reporter in 2017, we undertook a materiality assessment process based on Global Reporting Initiatives (GRI) Standards to identify our material issues that are significant to our Healthcare and Investment businesses and our stakeholders and ultimately inform the content of the 2017 and 2018 report.

This process included reviewing our corporate commitments, policies, risks and regulation requirements and engagement with staff and external stakeholders in order to continue to improve our sustainability performance by strategically focusing on material topics which span the economic, environmental, social, and governance (ESG) aspects over the coming years.

We worked with an independent consultant who guided us through GRI’s 4 steps of materiality – identification, prioritisation, validation and review – to determine an indicative list of material issues. As a first step, Haw Par undertook an internal assessment to better understand the impacts from our business activities, reviewing our internal risk assessments, strategy and policy commitments, and considered the sustainability disclosure of our peers. Senior management and select members of the Board were involved and engaged in this identification and prioritisation process.

In total, 6 key issues were prioritised and grouped into four Tier 1 Material Issues and two Tier 2 Material Issues (collectively “Material Issues”). The table below shows the result of the prioritisation of Material Issues. These ESG material topics apply to Haw Par’s Healthcare and Investment businesses.

Key Issues

For each of Haw Par’s 6 Material Issues, aspect boundaries have been considered for our reporting. We expect that our material topics will evolve over time and as such we will strive to keep abreast of changes in our business environment. We believe that by proactively managing these areas we position ourselves to improve our sustainability performance and create value for our stakeholders. More details can be found on boundaries of our Material Issues in their respective sections.

In future reporting years, we intend to further refine and validate our assessment of our value chain and our impacts on this value chain as part of our stakeholder engagement on material priorities.

Stakeholder Engagement

Haw Par’s approach hinges on the commitments to our key stakeholders who are identified based on the significance of their respective impacts on the organisation. We believe communication with relevant stakeholders is vital to the long term success of our businesses.

The basis for whom is considered a key stakeholder is understanding our value chain and thus determining who Haw Par has an impact on, and which stakeholders have an impact on our businesses.

Our Key Stakeholders Forms of Engagement Key Topics
Business Associates
  • One-on-one meetings
  • Local and overseas conferences
  • Site visits
  • Email and phone communication
  • Marketing and distribution
  • Manufacturing and product quality
  • Supply and logistics
  • Value-chain management
  • Financials
  • Business opportunities
  • Market conditions
  • Regulatory landscape
Employees
  • Goals determination and work plans
  • Seminars and training sessions, including induction program for new staff
  • Email messages from management
  • Safety briefings (for on-site employees)
  • Annual Performance appraisals
  • Learning and development
  • Work-life balance
  • Promoting teamwork
  • Work safety awareness
  • Productivity measures
Communities
  • Community engagement activities
  • Continuity of community projects and engagement with local welfare organisations
  • Environmental care
Regulators
  • Email and phone communication
  • Formal applications and approvals
  • Compliance
  • Permits and licences
  • Regulatory landscape
Investors
  • AGM / EGM
  • One-on-one IR meetings
  • Email and phone communication
  • SGXNET announcements
  • Corporate website
  • Company performances
  • Future directions
Consumers
  • Social media
  • Consumer surveys
  • Feedback form
  • Email and phone communication
  • Tiger Balm global website
  • Product efficacy
  • Product safety
  • Product availability
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