Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product and content safety
• Environmental sustainability
• Human rights and ethical sourcing
• Employee well-being
• Philanthropy

Environmental Achievements

• Achieved 90% of product packaging and inbox content from recycled paper or sustainable sources.
• Addressed 100% of company’s U.S. electricity use with renewable energy certificates (RECs).
• Addressed 100% of global onsite fuel use, non-U.S. electricity use, and employee business travel with carbon offsets.

Social Achievements

• Zero consumer product recalls and no product safety fines.
• 35% women in leadership roles globally (13% increase since 2011).
• $14.1 million in philanthropic support impacting over 3 million children.
• 89% of global employees participated in Team Hasbro volunteer events.

Governance Achievements

• Strengthened Global Business Ethics Principles to address modern slavery and reinforce freedom of association.

Climate Goals & Targets

Environmental Challenges

• Sale of two owned manufacturing facilities impacted progress on 2020 environmental goals.
• NGO reports alleging poor labor practices in some third-party factories.
• High seasonality of sales in the toy industry impacting supply chain management.

Mitigation Strategies

• Creating new 2020 environmental goals and restating the baseline.
• Thorough investigation of allegations, including unannounced factory inspections.
• Strengthening supply chain processes, increasing audit frequency, capacity building, and remediation follow-up.

Supply Chain Management

Supplier Audits: All third-party factories in China required ICTI CARE Seal of Compliance (2015)

Responsible Procurement

• Global Business Ethics Principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) (future reports)

Awards & Recognition

• World’s Most Ethical Companies® (4th consecutive year)
• Corporate Responsibility Magazine’s 100 Best Corporate Citizens (4th consecutive year)
• Corporate Responsibility Magazine’s Most Responsible Company for Consumer Items Industry Sector (2nd consecutive year)
• America’s Most Reputable Companies (Reputation Institute)
• Green Power Leadership (EPA)
• America’s Most Community Minded Companies (Civic 50)

Environmental Metrics

ESG Focus Areas

• Product Safety
• Human Rights and Ethical Sourcing
• Environmental Sustainability
• Diversity and Inclusion

Environmental Achievements

• Achieved 100 percent renewable energy use and carbon neutrality across our owned and operated global operations in the U.S. for the second consecutive year and extended commitment to 100 percent renewable energy and carbon neutrality globally.
• Launched our Sustainability Center of Excellence to drive our strategic environmental blueprint across our global organization.
• Launched our Sustainable Packaging Principles to guide our packaging design and development team.

Social Achievements

• Strengthened our ethical sourcing program, including becoming the first toy and game company to join a multi-sector social compliance group dedicated to working to improve social, ethical and environmental performance in global supply chains.
• Made significant strides in advancing our commitment to building an inclusive workplace where every employee can deliver their best. Ranked among the “Best Places to Work for LGBTQ Equality” by the Human Rights Campaign with a 100 percent score.
• Added two new female directors to our board in 2016. As of October 2017, we have a total of five female directors (42 percent) on our 12-member board.

Governance Achievements

• Upgraded and expanded our compliance program, requiring all new hires based in Rhode Island to receive in-person Code of Conduct training. Trained 5,000+ Employees
• Launched electronic compliance training relating to: Code of Conduct (excluding new Rhode Island-based new hires who received in-person Code of Conduct training); Anti-corruption; Global Competition; and Mutual Respect to all 5,000+ employees between Q1 and Q4, 2016.

Climate Goals & Targets

Environmental Challenges

• Keeping up with the continually evolving regulatory environment is highly complex due to the number of updated and newly introduced regulations and standards which vary by region, country, and even individual states, counties and cities.
• The increasingly complex requirements for reporting chemicals in products in the United States, Europe, and elsewhere.
• Ensuring social compliance in our supply chain around the world is a continuous process that requires careful monitoring.

Mitigation Strategies

• We work closely and proactively with regulators in emerging markets and around the world to understand each country’s requirements and make sure we, and the third-party factories that make our products, comply.
• We invest significant resources looking for alternatives to materials that can potentially impact human health or the environment.
• We combine industry best practices, strategic partnerships, and strict auditing standards to respect worker safety, well-being and dignity.

Supply Chain Management

Supplier Audits: 100% of global supply chain undergoes annual RBA social compliance audits.

Responsible Procurement

• Hasbro Global Business Ethics Principles, RBA social compliance program, Conflict Minerals Policy, Paper and Forest Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events that disrupt product supply chains

Transition Risks

• Higher energy costs

Reporting Standards

Frameworks Used: GRI G4 guidelines at the Core “in accordance” level

Third-party Assurance: Third-party provider for greenhouse gas emissions data; internal review and verification for other data

UN Sustainable Development Goals

• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)
• SDG 1 (No Poverty)
• SDG 2 (Zero Hunger)
• SDG 3 (Good Health and Well-Being)
• SDG 4 (Quality Education)
• SDG 16 (Peace, Justice and Strong Institutions)

Hasbro's CSR commitments and philanthropic activities support many of the UN Sustainable Development Goals.

Awards & Recognition

• No. 1 Green Company in the U.S. by Newsweek Magazine, No. 1 in the consumer discretionary industry category in America’s Most Community Minded Companies by the Civic 50, World’s Most Ethical Company ® for the fifth year in a row

Environmental Metrics

ESG Focus Areas

• Modern Slavery
• Human Trafficking
• Ethical Sourcing
• Human Rights

Social Achievements

• Repaid more than US $60,000 in fees to 800 workers.
• Supported major suppliers in safe re-openings during the COVID-19 pandemic.
• Provided training to factories on COVID-19 safety.
• Ensured factories followed local laws regarding COVID-19 lockdown and sick-leave wages.
• Produced 50,000 face shields/week for donation to frontline healthcare workers.

Governance Achievements

• Established a 24/7 free-of-charge worker hotline in multiple languages.
• Implemented a robust process to comply with the California Transparency in Supply Chain Act 2010, UK Modern Slavery Act 2015, and the Australian Modern Slavery Act 2019.

Climate Goals & Targets

Environmental Challenges

• Risk of modern slavery and forced labor in the global supply chain.
• Potential for forced labor through the use of labor agents and government-backed forced labor.

Mitigation Strategies

• Annual supply chain risk assessments and review of sourcing country human rights and labor trends.
• 100% of proposed factories and subcontractors complete an initial Hasbro Ethical Sourcing self-assessment and RBA Validated Assessment Program (VAP) audit.
• Immediate remediation of Zero Tolerance and Critical issues (including forced labor).
• 100% of licensee partners conduct and report on specified due diligence measures.
• Collaboration with industry organizations, stakeholder groups, and other brands to address human rights and labor risks.
• Unannounced RBA VAP factory audits on 100% of factories annually, plus Hasbro oversight audits on at least 10% of factories.
• Factory engagement on comprehensive corrective action plans.
• Requirement for suppliers to communicate the RBA Code of Conduct to their suppliers/subcontractors and monitor compliance.

Supply Chain Management

Supplier Audits: 100% of finished goods factories annually, plus at least 10% of high-risk factories annually.

Responsible Procurement

• Hasbro Human Rights Policy
• Hasbro Global Business Ethics Principles
• RBA Code of Conduct
• RLI Commitment on Forced Labor
• Hasbro Guide to Ethical Sourcing for Licensees
• Hasbro Conflict Minerals Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: RBA Code of Conduct, Responsible Labor Initiative (RLI) Commitment on Forced Labor