Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethical Sourcing
• Global Competitiveness
• Ethics and Compliance
• Sustainable Agriculture
• Transparency
• Child Labor
• Food Safety
• Consumer Health
• Talent Management

Environmental Achievements

• Reduced waste by 38% against 2009 baseline
• Achieved 86.6% recycling rate
• 97% of U.S. production at zero-waste-to-landfill sites
• Reduced total GHG emissions by 22% from 2009 baseline; emissions per pound of product produced fell 5% from 2009 baseline
• Reduced total water consumption by 73% from 2009 baseline; water consumption per pound of product produced fell 72 percentage points

Social Achievements

• Launched myWell-Being program, achieving 94% employee satisfaction
• Hosted 939 Hershey’s Track and Field Games meets in 2013, up 16% over 2009 baseline
• Employees volunteered more than 200,000 hours in their communities
• Employee participation in United Way Campaign reached 49% in 2013

Governance Achievements

• Revised Supplier Code of Conduct
• Achieved 100% Mass Balance RSPO-certified palm oil

Climate Goals & Targets

Environmental Challenges

• Establishing benchmarks for international environmental data
• Reversing increase in Total Recordable Incident Rate (TRIR), Days Away, Restricted or Transferred (DART) and Lost Workday Incident Rate (LWIR)
• Reaching scale in markets where competition is already entrenched
• Recruiting and developing management and sustainable operations talent in new markets
• Keeping up with demand for products in new markets

Mitigation Strategies

• Implementing the Hershey Environmental Management System (EMS)
• Investing in capital projects to improve energy efficiency and reduce GHG emissions
• Implementing a multifaceted approach to supporting the development of agricultural communities
• Investing in global capabilities to harmonize and streamline global management, talent development and go-to-market capabilities
• Implementing new safety management system

Supply Chain Management

Supplier Audits: 86% of selected external suppliers audited by year-end 2013

Responsible Procurement

• Supplier Code of Conduct
• Social assessments of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Weather-related impacts on agriculture

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Gluten-free, kosher, sugar-free versions of products
• Organic confectionery and baking chocolate products

Awards & Recognition

• Dow Jones Sustainability Index World Index
• DJSI Bronze Medal
• Civic 50
• Corporate Responsibility Magazine’s 100 Best Corporate Citizens list
• PR News CSR award (Workplace Innovation Category)
• Outstanding Business/Education Partnership, Pennsylvania

Environmental Metrics

ESG Focus Areas

• Responsible Sourcing
• Environmental Sustainability
• Workplace Diversity and Inclusion
• Community Engagement
• Child Nutrition

Environmental Achievements

• Decreased GHG emissions by 8 percent since 2014 and 23 percent since 2009. Reduced emissions by 13,000 metric tons CO2e in 2015.
• 11 zero-waste-to-landfill facilities (71% of total global production in ZWL plants).
• New desalination system in Monterrey, Mexico saved 16 million gallons of water.

Social Achievements

• Sourced 50% of cocoa from farms certified to be operating sustainably (meeting 2016 goal).
• Learn to Grow programs in West Africa helped over 31,000 farmers (15% women).
• Launched Nourishing Minds, a global social purpose initiative focused on child nutrition.
• Partnership with Feeding America provided meals to over 13,000 schoolchildren.
• Donated over $20.7 million in cash and products; 2,300 employees volunteered over 98,250 hours.

Governance Achievements

• Signed the White House’s American Business Act on Climate Pledge.
• Strengthened environmental commitments; broadened efforts to limit deforestation in supply chain.
• Developed strategies to leverage industry shifts (consumer preferences, globalization, technology).

Climate Goals & Targets

Environmental Challenges

• Economic slowdown in Asia and impact of rising U.S. dollar value on exports.
• Consumer demand for simpler, more sustainable ingredients and greater transparency.

Mitigation Strategies

• Restructuring and streamlining operations; hiring of a Global Chief Sales Officer.
• Commitment to simpler ingredients (e.g., reformulation of Hershey’s Kisses and Hershey’s Milk Chocolate Bars).
• Adoption of SmartLabel™ technology for product information transparency.

Supply Chain Management

Responsible Procurement

• CocoaAction—industry collaboration advancing cocoa sustainability.
• Commitment to 100% certified and sustainable cocoa by 2020.
• Traceability of palm oil to plantation level.
• Stricter environmental criteria for virgin fiber in pulp and paper.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Sustainable Products & Innovation

• SoFit soy protein brand
• KRAVE Jerky acquisition

Environmental Metrics

ESG Focus Areas

• Human Rights

Social Achievements

• Developed and implemented a Human Rights Policy guided by the UN Guiding Principles on Business and Human Rights (UNGPs), the UN Global Compact, and the Sustainable Development Goals.
• Established a Concern Line operated by an independent third party for grievance mechanisms across the value chain.

Governance Achievements

• Integrated human rights into the global sustainability strategy, The Shared Goodness Promise.
• Established oversight of human rights by the Global Sustainability Team, Sustainability Steering Committee, Board of Directors, and Executive Committee.

Climate Goals & Targets

Environmental Challenges

• Potential adverse human rights impacts across the value chain related to access to grievance mechanisms, access to water and sanitation, child labor, climate change, deforestation, forced labor and human trafficking, land rights and acquisition, living wage and income, safety and health, and women’s rights and empowerment.

Mitigation Strategies

• Conducting due diligence through human rights impact assessments, social compliance audits, and legal and regulatory compliance reviews.
• Taking timely and transparent action to remediate adverse human rights impacts.
• Building and investing in programs to address fundamental circumstances contributing to adverse human rights impacts.
• Partnering with nonprofit organizations and local community-based organizations.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business and Human Rights (UNGPs), UN Global Compact, Sustainable Development Goals

Environmental Metrics

ESG Focus Areas

• Accelerating our sustainable cocoa strategy
• Further strengthening diversity, equity and inclusion and our differentiated culture
• Ensuring our ingredients are responsibly sourced
• Delivering our environmental goals
• Continuing our focus on youth and communities

Environmental Achievements

• 2020 Scope 1 and 2 emissions were 23.7% less than 2018.
• 2020 Scope 3 emissions were 12.6% less than in 2018.
• 2.26 million pounds of packaging reduced in 2020
• Achieved 100% certified and sustainable cocoa commitment

Social Achievements

• Achieved 1:1 aggregate gender pay equity and by early 2021 achieved 1:1 aggregate POC pay equity for salaried employees in U.S.
• Launched The Pathways Project with ambitious new diversity, equity and inclusion commitments
• Invested $1 million to convert some operations to manufacture more than 40 million masks, a portion donated to community organizations and school systems
• Supported suppliers and growers and infrastructure such as handwashing facilities in cocoa-growing communities
• Adapted engagement with cocoa-growing communities so that child labor monitoring remediation and support (CLMRS) programs could continue despite lockdown measures

Governance Achievements

• Launched Responsible Sourcing Supplier Program
• Strengthened ESG disclosures, utilizing leading sustainability frameworks and continued support of the UN Global Compact
• Expanded reporting efforts to include the Task Force on Climate-related Financial Disclosures (TCFD) and the UN Guiding Principles Reporting Framework

Climate Goals & Targets

Environmental Challenges

• Global COVID-19 pandemic
• Ongoing issues and social unrest stemming from systemic racism
• Devastating natural disasters due to climate change
• Climate change poses a significant and increasing risk to global food production systems and to the safety and resilience of the communities where we live, work and source our ingredients
• Complex global supply chain spans communities with high levels of poverty and inequality
• Rampant misinformation during the pandemic

Mitigation Strategies

• Reinforced health and safety measures and focused on the physical, emotional and economic wellbeing of employees
• Prioritized safe operations for Manufacturing and Field Sales teams
• Loaned supply chain expertise and facilities to support healthcare systems
• Increased corporate philanthropy to support struggling communities
• Extended financing to suppliers and supported localized responses in cocoa communities
• Developed enhanced health and safety protocols
• Provided incremental incentives and appreciation pay to many Hershey manufacturing and retail workers globally
• Launched a COVID-19 website with access to informational resources and wellbeing materials for employees
• Communicated internally and externally at a regular cadence
• Used the guidance of the United Nations Guiding Principles (UNGPs) to identify and help address broad COVID-19-related human rights vulnerabilities among employees and workers in the supply chain
• Contracted medical staff on suppliers’ behalf, bought medical scanning equipment and provided capital for suppliers to make infrastructure changes for social distancing
• Simplified Crisis Management Playbook and developed processes to address future crises
• Scoping across all business processes, functions and geographies to determine procedures, systems and third parties that fall under Enterprise Resiliency Planning
• Pursuing a future state where Crisis Management, Business Continuity and Disaster Recovery are interdependent functions

Supply Chain Management

Supplier Audits: 82 audits submitted in 2020

Responsible Procurement

• Supplier Code of Conduct (SCOC)
• Responsible Sourcing Supplier Program
• Supplier Quality Management Program
• Living Wage and Income Position Statement
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Historic wildfires in California
• 2020 Atlantic hurricane season

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, SASB, UN Global Compact, UNGPs Reporting Framework, Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• Zero Sugar line
• Organic Reese’s and Hershey’s products
• ONE Bars

Awards & Recognition

• #21 DiversityInc. Top 50
• #23 “Great Place to Work” in Brazil
• #405 Forbes America’s Best Employers for Diversity List
• Forbes ranked Hershey as one of America’s Best Employers for Women
• DiversityInc Top Company for LGBT Employees
• #22 Morning Consult’s 2020 Most Loved Brands
• #8 DiversityInc Top Company for Veterans
• National Organization on Disability 2020 Leading Disability Employer
• Malaysian Society For Occupational Safety & Health (MSOSH) OSH Award—GOLD Class
• Best Places to Work for LGBTQ Equality 100% Corporate Equality Index
• #7 Morning Consult’s Most Trusted Brands
• HR Asia—Best Companies to Work for in Asia 2020
• #34 Forbes Just 100
• FTSE 4 Good
• The Civic 50 Honoree
• Dow Jones Sustainability World Index
• Best Company to Work For in Asia

Environmental Metrics

ESG Focus Areas

• Forest protection and restoration
• Sustainable cocoa production
• Farmer livelihoods
• Child labor elimination
• Community engagement
• Climate change mitigation
• Deforestation

Environmental Achievements

• 500,000+ non-cocoa trees distributed to farmers
• 135,000+ hectares with deforestation risk assessment
• 20,500 hectares under community-based natural resource management
• 17,000+ hectares of cocoa agroforestry in development
• 79,000+ cocoa seedlings distributed in Ghana
• 30,000+ multi-purpose shade tree seedlings planted in Kakum landscape

Social Achievements

• 29,621 farmers trained in cocoa smart climate practices
• 10,969 farmers applying agroforestry
• 839 farmers receiving payment for environmental services
• 37,757 farmers reached by good agricultural practices training programs
• 23,021 farmers with farm development plans
• 3,074 individuals participating in income generating activities
• 1,244 farmers with land tenure documentations
• Improved land governance fostering better relations between social groups in cocoa farming communities

Governance Achievements

• Establishment of village-level rural land management committees in Côte d’Ivoire
• Partnership with the Ghana Forestry Commission to protect and restore the Kakum Forest
• Development of community-based landscape governance systems in Ghana

Climate Goals & Targets

Environmental Challenges

• Deforestation
• Climate change impacts on cocoa production
• Child labor
• Land tenure insecurity
• COVID-19 related disruptions

Mitigation Strategies

• Cocoa & Forests Initiative (CFI) participation
• No-deforestation policy
• Implementation of Child Labor Monitoring and Remediation Systems (CLMRS)
• Collaboration with governments, NGOs, and other stakeholders
• Land tenure documentation programs
• Agroforestry initiatives
• Payment for ecosystem services programs
• Community-based natural resource management

Supply Chain Management

Responsible Procurement

• No-deforestation policy
• Requirement for supplier mapping and CLMRS coverage

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Deforestation

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of climate-smart cocoa farming practices
• Agroforestry

Reporting Standards

Frameworks Used: Cocoa & Forests Initiative (CFI)

Certifications: Rainforest Alliance, Fair Trade USA

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 13: Climate Action
• SDG 15: Life on Land

Initiatives contribute to improving farmer incomes, mitigating climate change, and protecting forests.

Environmental Metrics

ESG Focus Areas

• Cocoa
• Responsible Sourcing and Human Rights
• Environment
• Our People
• Youth
• Community

Environmental Achievements

• 48% improvement against Scope 1 and 2 GHG emissions baseline (2020: 28%)
• 18% improvement against Scope 3 GHG emissions baseline (2020: 13%)
• 77% of electricity consumption was renewable and zero-emission energy.
• Eliminated 9.5 million pounds of packaging material through elimination, redesign, and downgauging.
• 23% reduction in water intensity at São Roque facility compared to the prior year.

Social Achievements

• Achieved 1-to-1 aggregate gender pay equity for salaried employees in the U.S. (excluding recent acquisitions) in 2020 and 1-to-1 aggregate POC pay equity in 2021.
• Named the World’s Top Female Friendly Company by Forbes.
• 41% of total candidate search volume sourced through diverse-owned firms (35% increase over planned goal).
• Added 23 HBCUs and HSIs to recruiting roster.
• Supported nearly 200 VSLAs with 5,879 members (79% women).

Governance Achievements

• Updated Corporate Governance Guidelines to clarify the Board’s role in overseeing ESG matters.
• Expanded enterprise risk portfolio to include ESG as a standalone risk.

Climate Goals & Targets

Environmental Challenges

• Global impacts of the COVID-19 pandemic.
• Need to address systemic racism in the U.S.
• Supply chain disruptions.
• Changing consumer behavior.
• Global political turmoil.
• Water scarcity in Brazil.

Mitigation Strategies

• Flexible work environments and support programs.
• Resiliency programs for cocoa communities.
• Ambitious new inclusion goals.
• Science-based greenhouse gas reduction goals.
• Investing in renewable energy (solar farms).
• Sustainable packaging solutions.
• Improved energy efficiency in manufacturing.
• Water conservation measures in Malaysia and Brazil.

Supply Chain Management

Supplier Audits: 238 audits in 2021

Responsible Procurement

• Hershey Supplier Code of Conduct
• Responsible Sourcing Supplier Program
• SMETA 4-Pillar audits
• Supplier self-assessment questionnaires
• Social compliance audits
• Better Buying Institute’s Partnership Index survey

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Renewable energy
• Energy efficiency
• Sustainable packaging
• Sustainable agriculture

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, UN Guiding Principles Reporting Framework (UN GPRF), UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 45001, GFSI (for most facilities and suppliers)

Third-party Assurance: Quantis (for select environmental data)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 4 (Quality Education)
• Goal 2 (Zero Hunger)
• Goal 5 (Gender Equality)
• Goal 1 (No Poverty)

Initiatives contribute to these goals through various programs and commitments.

Sustainable Products & Innovation

• Organic REESE’S Peanut Butter Cups
• Organic HERSHEY’S bars
• Zero sugar product offerings
• Plant-based versions of HERSHEY’S products

Awards & Recognition

• Forbes World’s Top Female Friendly Company

Environmental Metrics

ESG Focus Areas

• Cocoa sustainability
• Responsible sourcing and human rights
• Environment
• People
• Youth
• Community

Environmental Achievements

• Improved energy intensity at Hershey manufacturing sites by 6.1% compared to a 2018 baseline.
• Sourced 77% of electricity consumption from renewable and zero-emission sources.
• Achieved a company-wide waste recycling rate of 78%.
• Eliminated over 4 million pounds of packaging in 2022.

Social Achievements

• Maintained fair and equitable pay achievements, including 1:1 aggregate people of color pay equity for salaried employees in the United States (2021) and 1:1 aggregate gender pay (2020).
• Achieved 47.8% women representation across all employees globally.
• Launched the Income Accelerator program in Côte d’Ivoire to improve farmer incomes.
• Supported more than 26.2 million children through education, nutrition, and social and emotional well-being programs.
• Implemented CLMRS covering 72% of farmers producing Hershey cocoa volumes in Côte d’Ivoire and Ghana.

Governance Achievements

• Maintained high standards of ethics and integrity, recognized among the 2023 World's Most Ethical Companies®.
• Expanded ESG oversight and execution with a multi-level operating structure.
• Linked executive compensation to DEI goals.

Climate Goals & Targets

Environmental Challenges

• Complexities around poverty, child labor, and deforestation in cocoa-growing communities.
• Extreme weather and natural resource constraints disrupting operations and stressing the supply chain.
• Challenges in reducing plastic and packaging, conserving water and natural resources, and reversing biodiversity loss.

Mitigation Strategies

• Multiyear supply chain transformation and infrastructure expansion.
• Implementing socially responsible and sustainable environmental practices.
• Concrete actions to reduce carbon emissions.
• Investing in cocoa sustainability, responsible sourcing, and human rights.
• Improving the lives of youth and strengthening communities.
• Developing alternative sourcing strategies.

Supply Chain Management

Supplier Audits: 269 audits submitted in 2022

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Supplier Program
• Responsible Recruitment Program
• Human rights screening for prospective suppliers
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Water stress

Transition Risks

• Competition for sustainably sourced ingredients
• Rising costs of sustainably sourced ingredients
• Potential implications of a carbon tax

Opportunities

• Development of energy-efficient products
• Investing in nature-based solutions

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB, TCFD, UNGC, UNGPRF, UN SDGs

Third-party Assurance: EY Limited Assurance and Quantis Verification

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 4 (Quality education)
• Goal 2 (Zero hunger)
• Goal 5 (Gender equality)
• Goal 1 (No poverty)

Hershey's ESG priorities align with and contribute to the advancement of these SDGs.

Sustainable Products & Innovation

• Plant-based versions of Hershey’s Milk Chocolate and Reese’s Peanut Butter Cups
• Plant-based Honest® gummies

Awards & Recognition

• 2023 World's Most Ethical Companies®
• Top 9% of 310 worldwide Food, Beverage & Personal Care companies for performance in protecting children’s rights (Global Child Forum)

Environmental Metrics

ESG Focus Areas

• Human Rights
• Responsible Sourcing
• Supply Chain Transparency
• Forced Labor
• Child Labor

Social Achievements

• Enrolled 132 new suppliers and sites into the Responsible Sourcing Supplier Program in 2023, bringing the total of high-risk or high-priority suppliers and sites to 628.
• Responsible Recruitment Program covered 84 labor providers in 2023, up from 65 in 2022.
• No instances of forced or child labor were identified in Hershey-owned facilities or Tier 1 supplier sites.
• 88% of audit reports with non-compliances had corrective action plans in place by the end of 2023.
• Provided a daily vitamin-fortified snack, ViVi, to more than 53,000 children in 174 schools in cocoa-growing communities.

Governance Achievements

• Updated Human Rights Policy, Supplier Code of Conduct, and Living Wage & Income Position Statement in 2023.
• Established a clear governance structure for ESG oversight by the Board of Directors and relevant committees.

Climate Goals & Targets

Environmental Challenges

• High-risk and high-priority suppliers located in Brazil, China, India, Malaysia, Mexico, and the United States.
• Responsible recruitment risks remain higher in South and East Asia.
• Heightened child labor risks within U.S. manufacturing, particularly facilitated by labor providers.
• Child and forced labor risks in sugarcane exist across multiple origins.
• Child and forced labor risks in palm oil exist across multiple origins.

Mitigation Strategies

• Implemented the Responsible Sourcing Supplier Program with third-party verification tools, corrective action plans, and issue remediation requirements.
• Developed and implemented the Responsible Recruitment Program, including risk assessments, SAQs, and SMETA audits.
• Pre-screening potential suppliers with social compliance audits and self-assessment questionnaires.
• Expanded priority ingredients and materials risk assessment to include cocoa, sugar, and palm oil.
• Implemented the Child Labor Monitoring and Remediation System (CLMRS) in cocoa supply chains.
• Partnered with various organizations to address systemic issues and provide training and capacity building for suppliers.

Supply Chain Management

Supplier Audits: 316 in 2023

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Supplier Program
• Pre-qualification process for potential suppliers
• Ingredient-specific policy requirements (cocoa, palm oil, sugar)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGPs, OECD Guidelines

Certifications: SMETA 4-Pillar

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 12: Responsible Consumption and Production

Hershey's initiatives aim to improve farmer incomes, promote responsible recruitment, and ensure ethical sourcing practices.

Awards & Recognition

• Leader in protecting children’s rights by the Global Child Forum (2023)