Hershey ESG Report

wered by o P ed Shar ss Goodne 2021 ESG REPORT

2 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report re 33 A Responsible Sourcing We and Human Rights 34 Human Rights Across Our Value Chain y rshe 38 Where We Source Our Ingredients e 39 Responsible Sourcing H 43 Our Progress Welcome to Our 48 3 The Big Picture E nvironment 80 Youth 2021 ESG Report 4 A Message From Michele Buck 49 Acting on Climate Change 81 The Heartwarming Project Hershey’s purpose is to “Make More Moments 5 Spotlight 2021 52 Employees Acting for Change 84 Our Shared Goodness Legacy — of Goodness” for our consumers for many 6 Our ESG Priorities 53 Making Progress on Packaging Milton Hershey School generations to come. Integral to achieving that 7 Progress Against Our Priority Goals 54 Protecting Water Supplies 85 Our Progress is our holistic sustainability strategy: our Shared 9 Awards and Recognition 55 Our Journey to Understand Goodness Promise. It guides how we empower Our Water Impact the remarkable people who make and sell our 86 brands, interact with farming communities 56 Innovating Waste Solutions Community 10 that grow our ingredients, deliver on our Our Company 57 Our Progress 87 Values With Impact — How Hershey commitments to consumers, customers and 11 Corporate Governance Makes a Difference external stakeholders, protect the environment 13 Materiality 88 Showing up for Our Communities and support children and youth. 62 Our People 2021 was a testament to the fortitude and 14 Our Snacks Portfolio 89 Being a Good Neighbor 15 Nutrition, Innovation, Choice 63 Stronger Together 90 A Culture of Giving Back perseverance of The Hershey Company, and Transparency 64 Keeping People Safe allowing us to ultimately thrive. We continued 92 Our Progress to deal with the global impacts of the COVID-19 16 Excellence in Food Safety 65 Providing a Caring Employee Experience pandemic and the need to address systemic 17 Marketing Responsibly 67 Accelerating DEI Efforts at Hershey racism in the U.S. This was the year we hit the 18 Staying Agile Through Change 68 2021: Living DEI at Hershey 93 About This Report ground running with ambitious new inclusion 69 More Pathways to JOIN goals. A majority of Hershey employees in 19 Our Progress manufacturing and retail roles continued 71 More Pathways to GROW to work in-person while our corporate staff 73 More Pathways to REACH OUT began a more hybrid approach. The ongoing 20 Cocoa 74 Our Progress need for flexible work environments for all 21 Cocoa For Good employees meant they needed more support than ever before. In addition, the economic 22 Deeply Committed to consequences of the pandemic made delivering Responsibly Sourcing Cocoa our supportive resiliency programs to cocoa 23 Accountability, Transparency communities more essential than ever. and Due Diligence in Cocoa We stepped up to every challenge, facing them 24 Working to Eliminate Child Labor with flexibility, adaptability, compassion and 26 Prevention Is the Priority resilience. As we overcame issues, we were 27 Lifting up Rural Livelihoods constantly reminded: we are stronger together. By putting people first and focusing on what 29 Fighting Deforestation matters most, we ended 2021 stronger and 31 Our Progress ready for the future.

3 The Hershey Company | 2021 ESG Report The Big Picture The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report e Sharing We don’t just make chocolates Mor ss and snacks — we make moments of goodness. Through our iconic and emerging brands, we create products odne that bring people together and o make memories. G Throughout 2021, we were there to create comfort and joy at home and forge connections among those who were socially distant. From snacks at family movie night to baking homemade favorites; from summertime s’mores in the backyard to showing appreciation for essential workers; we were honored to be invited into these important moments and many more. We love that through our commitments and programs, we wrap each of these special moments in sustainability, creating a tomorrow that’s even better than today.

4 The Hershey Company | 2021 ESG Report The Big Picture The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report In March 2021, we announced a new science- A Message From based greenhouse gas reduction goal to cut our absolute Scope 1 and Scope 2 emissions Through all of the by 50% and our absolute Scope 3 emissions by 25% by 2030, against a 2018 baseline. We’ve “ made significant progress and are almost half- change brought on by way to achieving our goals as a result of focused the pandemic, evolving Michele Buck and innovative efforts by our teams. consumer behavior Through all of the change brought on by the and the continued pandemic, evolving consumer behavior and For the last two years, employees continue to focus on how we can the continued conversations on race and conversations on Hershey, along with the rest make a positive impact within our business, our equity, I find myself once again honored to communities and around the world. work alongside such dedicated, innovative race and equity, of the world, has operated We’ve strengthened our efforts within cocoa and caring people. I find myself once under extraordinary communities, our top priority across ESG. Our ESG priorities, while ambitious are again honored to circumstances as we Our pledge to invest half a billion dollars in achievable, and we remain focused on the these communities by 2030 is translating to important work of embedding these priorities work alongside such navigated the COVID-19 meaningful results on the ground, helping to within our short and long-term business pandemic, supply chain keep children in school, helping to diversify and strategies. I have great confidence in our ability dedicated, innovative increase incomes, giving farmers the support to create positive change for our business, our and caring people. disruptions, changing to build thriving businesses and protecting the communities and our world, and I look forward consumer behavior and forests around cocoa farms. to another year of progress, evolution and This work is complemented by our growing making a difference for our many stakeholders global political turmoil. efforts to protect human rights across our value and partners. chain. We have been refining both our due This report marks the evolution of our diligence work and our transparency in this area, sustainability strategy to a more cohesive model holding ourselves accountable to the people of environmental, social and governance (ESG) who work within our supply chain, and reporting commitments that reflect integration of our our progress and challenges in-line with leading ESG priorities into our business operations. disclosure frameworks. Michele Buck And never before has this been so important. We remain committed to make Hershey a more Chairman, President and CEO, In 2021, we delivered a record year in terms of diverse, equitable and inclusive workplace The Hershey Company business performance and made significant through our Pathways Project. We’ve advanced strides across some of our most important ESG several ambitious DEI goals both within our own priorities — cocoa sustainability, responsibly workforce and culture and across our supply sourcing our ingredients, diversity, equity chain through our Supplier Diversity Program, as and inclusion (DEI) and our environmental well as in our communities. For example, we’ve agenda. As we faced challenges and pursued expanded our work with diverse-owned talent opportunities, it was the commitment we had search firms with 41% of our total candidate to one another, and the tremendous agility search volume sourced through these firms, a and flexibility that propelled us forward. Our 35% increase over our planned goal. In addition, purpose, to make more moments of goodness, we added 23 Historically Black Colleges and and our values of togetherness, integrity, Universities (HBCUs) and Hispanic-Serving making a difference and excellence continue to Institutions (HSIs) to our roster of universities be foundational to who we are, and anchor us and schools where we recruit. as we look forward to the work ahead. Hershey

5 The Hershey Company | 2021 ESG Report The Big Picture The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Spotlight 2021 We want to drive positive and Making a Bigger Commitment lasting change around the to Combat Climate Change world. Using our expertise Addressing climate change and meeting and strong partnerships, the goals of the Paris Agreement demands change in how our world works and the we’re responding to global way we use resources. To play our part, we challenges with local care. Becoming Stronger Together announced science-based greenhouse gas Investing in our people is always a worthwhile (GHG) reduction goals in March 2021. The goal investment. From building more inclusive commits us to cutting our absolute Scope 1 and Supporting Our Communities workplaces to supporting employee wellness, Scope 2 emissions by 50% and our absolute Working to Eliminate Child Through COVID-19 we are continuously finding more ways to better Scope 3 emissions by 25% by 2030, against support the Hershey workforce of today and a 2018 baseline. We’re already taking action Labor in Cocoa The global pandemic continued to impact tomorrow. Through our Pathways Project we to meet our goal, including signing power Our investment in cocoa communities is communities around the world throughout committed to achieving a college recruiting purchase agreements (PPAs) that will enable continuing to help improve lives in West 2021. When the Delta variant threatened portfolio that is at least 50% diverse. To help the construction of three new utility-scale Africa. To monitor, prevent and remediate in-person learning in fall 2021, we revived our us meet this target, we added 23 Historically solar farms. We also made substantial progress instances of child labor, we remain committed mask distribution program. We dispatched over Black Colleges and Universities (HBCUs) and toward our Scope 1 and 2 emissions targets to 100% sourcing visibility by 2025 for farmers 575,000 masks to nonprofits and students Hispanic-serving Institutions (HSIs) to our through improvements in energy efficiency. in Côte d’Ivoire and Ghana, and continue to across dozens of school districts. When the roster of schools we recruit from. We are also To reduce value chain emissions (Scope 3), we ensure 100% of the cocoa volume we source pandemic devastated India, our local team incredibly proud to have been named as the committed to eliminate commodity-driven in these countries is covered by a Child Labor acted rapidly by distributing 500 oxygen World’s Top Female Friendly Company by deforestation from our ingredient supply Monitoring and Remediation System (CLMRS) concentrators to hospitals across the country. Forbes for the inaugural ranking. We continue chains by 2030 and are investing in sustainable by 2025. In 2021, Hershey supported CLMRS In addition, we made a $50,000 commitment to offer SmartFlex benefits programs that packaging solutions. covered nearly 103,000 children, and we expect with nongovernmental organizations (NGOs) enable employees to achieve a better work/life For more information, see page 49. to increase that to approximately 125,000 GiveIndia and Milaap to assist hospitals with balance and our programs to provide resources children by 2025. In addition, through our procuring ventilators, oxygen concentrators that support physical and mental health. Energize Learning school feeding program, and cylinders. Our Hershey Brazil team donated Hershey is distributing ViVi, a highly nutritious $169,000 for pandemic relief, which was used For more information, see page 67. peanut-based therapeutic food, to 45,000 to provide food baskets, hospital materials and children daily in Côte d’Ivoire and Ghana. equipment. In the U.S., we organized multiple on-site vaccine clinics for employees and their For more information, see page 24. dependents (aged five and over) who wanted to get vaccinated or receive a booster shot. We also continued our flexible working conditions so that corporate employees could keep working from home and via a hybrid in-office work environment. We focused on the health and safety of all our employees working in-person by continuing to provide proper personal protective equipment (PPE), COVID-19 antigen home tests and physically distanced workspaces. More information about Hershey’s actions providing pandemic support in 2021 may be found throughout the 2021 ESG Report.

6 The Hershey Company | 2021 ESG Report The Big Picture The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our ESG Priorities We are using our ESG priorities and robust understanding of our most material issues to inform and shape our business strategy. Our aim is to deeply embed sustainability and responsibility into the fabric of our organization through our policies, strategies and processes. From resilient cocoa communities and sustainably produced snacks to a legacy of kindness in our communities, we have also aligned what matters most to us to the Sustainable Development Goals (SDGs) we can help advance. Cocoa Responsible Environment Our People Youth Community Supporting the communities Sourcing and Constantly enhancing our Creating more ways for more Giving youth the tools Fostering a culture that and environments behind our Human Rights operations to meet high- people to be themselves to create compassionate, cares — and actively makes most essential ingredient. impact climate, waste and and thrive. successful and connected a difference where we live • Improve farmer incomes Using robust due diligence packaging goals. • Accelerate inclusion. futures. and work. and livelihoods. and leading standards to • Address climate change • Amplify Hershey • Help children succeed • Improve lives across • Eliminate child labor and protect people across our through science-based people and culture. through education, the communities where improve children’s nutrition. value chain. GHG emissions targets. nutrition and social- we live and work. • Ensure ingredients are • Reduce the impact of emotional well-being. • Protect the environment. sourced responsibly. plastics and packaging. • Ensure our suppliers meet our sourcing requirements. Through our ESG priorities we support the following SDGs:

7 The Hershey Company | 2021 ESG Report The Big Picture The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Progress Against Our Priority Goals Target Progress Target Progress Goals Year (as of Dec. 31, 2021) Goals Year (as of Dec. 31, 2021) COCOA ENVIRONMENT 100% independently verified cocoa 2020 Achieved 50% absolute reduction in Scope 1 and 2 GHG emissions 2030 On Track 4 100% against a 2018 baseline 48% 100% sourcing visibility of Hershey’s cocoa volume in 2025 On Track 25% absolute reduction in Scope 3 GHG emissions against 2030 On Track Côte d’Ivoire and Ghana 68% a 2018 baseline 18% 100% of farmers producing Hershey’s cocoa 2025 On Track 100% of plastic packaging to be recyclable, reusable 2030 On Track volume in Côte d’Ivoire and Ghana are polygon 46% or compostable mapped by our suppliers to improve traceability and In 2021, we began initial recyclability 1 research and machine ability trials. monitor deforestation In 2022, we are focused on 100% of farmers producing Hershey’s cocoa volume 2025 On Track converting flexible packaging to recyclable structures. in Côte d’Ivoire and Ghana are covered by Child Labor 62% Monitoring and Remediation Systems (CLMRS) to 5 2 25 million pounds of packaging to be eliminated 2030 On Track prevent, monitor and remediate child labor 9.5M Target Progress Target Progress Goals Year (as of Dec. 31, 2021) Goals Year (as of Dec. 31, 2021) RESPONSIBLE SOURCING AND HUMAN RIGHTS OUR PEOPLE 100% of priority ingredients and materials to be responsibly 2025 On Track Achieve pay equity for similar job categories across our 2025 On Track 3 global salaried employees and sustainably sourced (by volume) 78% In 2020, we achieved 1-to-1 aggregate gender pay equity for salaried employees in the U.S. 85% of in scope supplier sites meet Hershey’s Responsible 2025 On Track (excluding recent acquisitions) and Sourcing Supplier Program requirements 25% in 2021, we achieved 1-to-1 aggregate POC pay equity for salaried employees in the U.S. (excluding recent acquisitions). We seek to maintain existing achievements and continuous improvement on pay equity for similar job categories throughout our organization. 1 Beginning in 2021, to be considered polygon mapped, all farm plots managed by the farmer must be mapped, as defined by the World Cocoa Foundation. Previously, a farmer was considered polygon mapped if at least one plot of land was mapped. 47–50% women representation across all employees 2025 Achieved 2 This refers to households covered by CLMRS. 3 This result represents the percentage by volume of Hershey’s five priority ingredients, which met our definition of responsibly globally and 30–40% people of color (POC)representation 47.7% women globally 6 and sustainably sourced in 2021. This definition varies by ingredient and is subject to change as Hershey’s responsible sourcing across U.S. employees On Track programs evolve. More information may be found in the Responsible Sourcing Ingredient Commitments and Progress table on page 47. 24.6% POC in the U.S. 4 Hershey’s GHG emissions reduction goal for 2030 is based on Scope 1 and Scope 2 (market-based). 5 The initial goal was achieved five years ahead of schedule in 2020. We have since expanded our commitment to eliminate 50% hazard reduction for job functions with ergonomic 2025 On Track an additional 25 million pounds of packaging by 2030. 6 POC refers to Black, African American, Hispanic/Latino, Asian/Asian Pacific Islander, Hawaiian Pacific Islander and those risks through process improvements 17% who identify as two or more races.

8 The Hershey Company | 2021 ESG Report The Big Picture The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Target Progress Target Progress Goals Year (as of Dec. 31, 2021) Goal Year (as of Dec. 31, 2021) YOUTH COMMUNITY 50 million children globally supported through education, 2025 On Track $105 million donated in cash and products to community 2025 On Track 1 partners focused on education, community economic nutrition, and social and emotional well-being 15.4M $43M development, inclusive communities and health and human 3 services where we live and work 100,000 children take Heartwarming actions and impact 2025 Achieved 3 Hershey donated $43 million in cash and products cumulatively from January 1, 2020 to December 31, 2021. 2 their communities 128,800 children 1 More than 15.4 million children were supported, cumulatively from January 1, 2020 to December 31, 2021. 2 More than 128,800 children took action and impacted their communities, cumulatively from January 1, 2020 to December 31, 2021.

9 The Hershey Company | 2021 ESG Report The Big Picture The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Awards and Recognition Global DiversityInc 2021: • Top Companies for ESG • Top Companies for Latino Executives • Top Companies for SUPPLIER LGBTQ Employees ENGAGEMENT • Top Companies for Executive LEADER Diversity Councils 2021 • Top Companies for Philanthropy U.S. Canada Brazil Asia

10 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Integrity is one of our core values and is central to what we stand for Living as a company. Operating as an ethical company is fundamental to how we build trust with all our stakeholders. We are guided by a suite Our of carefully crafted policies and processes, developed to ensure that we operate responsibly and remain prepared, resilient and competitive. This work is never finished — best practices always evolve — Values and we are continually strengthening our approach and adopting leading standards to ensure that Hershey keeps pace.

11 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Corporate Governance Hershey prioritizes working with integrity and being Board of Directors transparent in all we do. Committed to living our values, The full Board oversees our ESG strategies and priorities, along with the most we have developed robust policies and procedures to act important emerging ESG trends, risks and opportunities. ESG-related oversight responsibilities are divided among the Board’s committees, with oversight for ESG responsibly across our operations and supply chain. governance residing with the Governance Committee. Management and ESG We regularly review our processes to align with the leaders typically provide deep dives on ESG issues for the full Board at least once a changing regulatory landscape. year, with relevant committee updates occurring frequently throughout the year. 1 In 2021, our Corporate Governance Guidelines Our Board were updated to clarify the Board’s role in Executive Sustainability overseeing all ESG matters, including our Committee Steering Committee ESG strategies, priorities, progress, risks and Our CEO and her direct reports conduct Composed of key business leaders and 50%+ opportunities. All Board committee charters at least quarterly reviews of our Shared ESG subject matter experts, this cross- were enhanced to include oversight of each Goodness Promise strategy, data and functional group meets bimonthly to 12 Board committee’s relevant ESG responsibilities and progress against our commitments and evaluate ESG strategy effectiveness and aged 50+ 12 diversity reporting requirements. targets, as well as emerging ESG and interdependencies, provides input on Directors While various ESG-related matters have been sustainability challenges and opportunities. investments to support ESG program included in our ERM process since at least deliverables and reviews progress toward 2018, we expanded our enterprise risk portfolio ESG Advisory goals and key performance indicators to reflect ESG as a standalone risk beginning Committee (KPIs) relevant to our global ESG and in 2021. We further expanded our portfolio sustainability programs. in 2022 to include human capital as well as Established in 2021, this group of executive 5 climate and environment as enterprise-level team members and senior leaders meets Global 2 women risks along with ESG. bimonthly to review ESG strategic direction Sustainability Team people For more information on our Board committees, and delivery, governance and proposed of color ESG oversight and responsibilities and ESG-related investments. The committee Led by our Vice President of Global approach to executive compensation, see our reviews and provides input on key decisions Sustainability and Corporate 2022 Proxy Statement. related to our global ESG and sustainability Communications, this team is composed The Board of Directors oversees our strategies, programs, including review of enhanced of ESG experts and leaders from across including our holistic ESG strategy — our Shared Governing ESG at Hershey disclosures and policy changes. the business who manage the strategy, Goodness Promise, all significant decisions and implementation and reporting of our global business performance. This includes compliance Our ESG and sustainability governance model Disclosure ESG and sustainability initiatives. The with legal and regulatory requirements, our includes a multi-level operating structure to Committee Global Sustainability team communicates Enterprise Risk Management (ERM) program ensure we are aligned on the most important regularly with external stakeholders who and the key risks it identifies, the integrity of our issues facing the company and allocating In 2021, Hershey expanded its Disclosure provide valuable perspectives on our financial statements and the management of resources to drive progress within our Shared Committee to include the Vice President program decisions and focus. succession planning and compensation policies. Goodness Promise. Accountability for of Global Sustainability and Corporate The Board committees conduct in-depth managing ESG and sustainability resides with Communications to ensure consistent reviews of significant issues to help manage the Vice President of Global Sustainability and disclosures across the company’s financial these responsibilities. Corporate Communications, who reports to and ESG reporting. our Chief Supply Chain Officer. 1 Data current as of December 2021.

12 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Our Policies All contributions are disbursed pursuant to Our Code of Conduct (the Code) reflects our internal contribution guidelines and in who we are and what’s important to us, accordance with applicable election laws. All and emphasizes our commitment to acting PAC contributions are bipartisan and given ethically. It provides the policies and guidelines equally to both major political parties at the that define how we do business, including, federal and state levels. among others, those with respect to anti- Corporate funds are used to support or corruption, antitrust, whistleblower protection advocate for issues, legislation or referenda of and health and safety. All our directors and importance to Hershey and our shareholders. employees receive annual training on the Code These funds, classified under the U.S. Internal and must verify that they have read and agree Revenue Code as non-deductible lobbying with the principles it outlines. expenditures, are paid primarily to industry We also maintain several policies that control trade associations and support the salaries of how we responsibly source key ingredients our internal Government Relations personnel. and the standards and behaviors we expect In accordance with the Lobbying Disclosure from our suppliers. Other ESG policies relate Act of 1995, our company files quarterly to environmental management, human rights, lobbying reports, outlining the company’s food safety and other key concerns for our federal-level advocacy work. We also company. Our policies are publicly available on publish an Annual Report of Lobbying and our website. Advocacy Expenditures on the Investors section of our website annually. Lobbying and Transparent Policy Consistent with our Code, Hershey does not make political contributions and only engages in corporate political activities through the Hershey Political Action Committee (PAC). Funds raised through the PAC, which is made up of voluntary employee contributions, are used to support elected officials who demonstrate a commitment to the growth and prosperity of our business, the communities in which our employees live, and whose values and goals align with The Hershey Company’s vision and Code of Conduct.

13 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Materiality We routinely conduct materiality assessments to ensure that Hershey focuses on the issues that are of greatest importance to our stakeholders and works effectively to meaningfully address them. Our latest materiality assessment was completed in 2020. Assessment Process We also recognize that investors and other stakeholders are interested in what Hershey Major Food safety We align our materiality methodology with the is doing on topics identified as material by Global Reporting Initiative (GRI) Standards. the Sustainability Accounting Standards Board Child labor Responsible This consists of interviews, surveys and (SASB). Our SASB report can be found on Forced sourcing workshops with key internal and external our website. Business operations and labor Climate stakeholders across our value chain, including supply chain resilience change Hershey managers across different functions, Workplace health and safety Ethical investors, NGOs, think tanks, suppliers and Stakeholder Engagement business industry associations. Our relationships and ongoing dialogue with Human rights Farmer The resulting findings identified a total stakeholders are an important part of our Deforestation livelihoods of 33 issues, which cover impacts to our people, Board’s ESG commitment. We engage in Ecosystems and biodiversity the planet and our business; with 11 being the continuous dialogue throughout the year Water Packaging most material: with NGOs, customers, investors, government Emerging regulation Racial and social injustice and plastics officials and other stakeholders to discuss for sustainability • Business operations and supply our ESG performance. Additionally, feedback Sustainable agriculture Diversity, equity and inclusion chain resilience from our employees is sourced via our Employee attraction, Nutrition Waste • Child labor Business Resource Groups (BRGs), Green retention and development and health Ingredients and product • Climate change Teams, surveys and ad hoc through direct Transparent Responsible marketing transparency engagement with the company’s Global policy and and labeling Women’s empowerment • Deforestation Sustainability team. We remain committed lobbying Energy • Farmer livelihoods to fostering transparent dialogue with Consumer expectations on sustainability • Food safety stakeholders as our ESG programs evolve. Animal welfare Labor relations • Forced labor Air pollution Supporting communities The future • Human rights Influence on stakeholder decisions and assessments of retail • Packaging and plastics Data protection • Responsible and ethical business and privacy • Responsible sourcing Please note that all 33 issues identified on the matrix are important and interconnected and should not be considered in isolation. For a full list of definitions for each of our Significant material topics, see pages 35 – 38 in our 2020 GRI Report. Significant Impact on economy, environment and society Major

14 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Our Snacks Portfolio We craft snacks that work for every occasion — from indulgent treats for special moments to energy-boosting options that support a healthy lifestyle. We use quality N I ingredients and leading manufacturing standards and provide user-friendly nutrition 2 W 0 E 2 information on our packaging to offer trusted snacks that are safe and delicious. NDOT’S 1 HOMESTYLE PRETZEL snacks N I 2 W 0 E 2 NLILY’S1 Sweets Sweet Salty

15 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Nutrition, Innovation, Choice and Transparency N I 2 W 0 E 2 Hershey was built on For consumers who want to cut their sugar In addition, we helped develop an industry- NDOT’S 1 making great-tasting intake, we expanded the zero sugar product wide technology for U.S. products called HOMESTYLE offerings in 2021, and also acquired Lily’s SmartLabel™. With a simple scan of a QR code PRETZEL snacks accessible. Sweets, LLC (“Lily’s”), a maker of no sugar on the product package, consumers are taken snacks added snacking options, including dark and to the Hershey SmartLabel™ page and provided In the more than 125 years we’ve been in milk chocolate style bars, baking chips, peanut with a wide range of product information business, tastes have changed. We started butter cups and other confection products. In including information on nutrition, ingredients by making chocolate available to all. Today, addition, our investment in Bonumose will help and their definitions, allergens and whether consumers have a variety of snacking needs, us champion the use of innovative sugars in the product is gluten-free. including some who are seeking balanced, our snacks. permissible snacking options. Beyond offering snacks with smaller portion We’re stepping up with a full spectrum of sizes, such as Thins, our research inspired us to snacking opportunities by offering more better- make new moments with the up to 40 million for-you (BFY) options that help those who love U.S. adults who are looking for chocolate our brands enjoy snacks they love while still products that are organic, plant-based or meeting their health and wellness goals. made with independently verified cocoa. To meet these preferences, we launched We’ll always provide classic Hershey treats for organic REESE’S Peanut Butter Cups, organic moments of indulgence like our HERSHEY’S HERSHEY’S bars and are exploring plant-based bars and REESE’S Peanut Butter Cups, but versions of our HERSHEY’S brand products. N I 2 we’re also focusing on creating products that Beyond innovation in formulations, we are W 0 E 2 meet a range of consumers’ needs and snacking focused on improving transparency in ways that N 1 occasions throughout the day, including support consumer awareness and choice. We LILY’S popcorn, puffs and pretzels (3Ps). maintain a Food Claims Review Council in the Sweets As part of our focus on 3Ps, we added the U.S. that acts as a collaborative, cross-functional fastest growing pretzel brand in the U.S. to team of regulatory, nutrition and legal partners. The Hershey Company when we finalized our The Council provides guidance on product acquisitions of Dot’s Pretzels, LLC (“Dot’s”) and claims, labeling, marketing and advertising early Pretzels Inc. (“Pretzels”) in December 2021. in the innovation process to ensure products are Together, Dot’s and Pretzels manufacture and compliant and address consumer needs. distribute filled, gluten-free and seasoned pretzels and other salty snack food products to retailers and distributors in the U.S.

16 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Excellence in Food Safety Hershey maintains some To drive the right behaviors around food For a summary of our goals and KPIs of the highest food safety safety and quality, we have standardized our on this topic, see page 19. manufacturing facility personnel onboarding production standards and annual refresher training. This training in the industry. is required for 100% of our manufacturing facility employees and is incorporated into the integration process for any acquired We go beyond compliance with national and manufacturing facilities. Additionally, specific international standards, and every part of our food safety and quality training programs manufacturing process is subject to rigorous were created and implemented for Hershey auditing and oversight. quality assurance, engineering, compliance and marketing professionals. We maintain a Product Excellence Program (PEP), which is our Quality Management Food Safety in Our Value System for Food Safety, Regulatory Compliance Chain — and Beyond and Product Quality. PEP is focused on identifying, reducing and eliminating risk Hershey sources 100% of ingredients from throughout product design, supply chain, suppliers approved through the Hershey production and distribution. Supplier Quality Management Program, which Our Quality and Regulatory Compliance team is defined and executed in compliance with continually reviews and evaluates emerging applicable GFSI and regulatory requirements. regulations and industry practices to ensure Hershey has also been working with suppliers PEP is meeting the latest requirements and to help them achieve certification under a best practices. PEP’s elements meet or exceed recognized GFSI standard and has made great current Global Food Safety Initiative (GFSI) progress toward the goal of sourcing 100% of standards. In addition, all Hershey-owned our ingredients from GFSI-certified suppliers. manufacturing facilities are GFSI certified, As of the end of 2021, 93.8% of our suppliers which is an independent verification of the globally have achieved certification, covering 1 99.8% of our sourced ingredients by spend. strength of our food safety and quality systems. But our success is more than our programs — In 2021, we became a member of the people are at the core. Alliance to Stop Foodborne Illness (STOP), All Hershey products are designed and a national nonprofit that brings together food produced under a hazard analysis and industry companies, industry members and the risk-based preventive controls (HARPC) Food and Drug Administration. The Alliance is approach, which is part of the U.S. Food Safety collaboratively designing and implementing Modernization Act. innovative and tailored programs to integrate motivational elements of personal stories into food safety culture and training programs. In addition, the Alliance is building broader education and awareness by engaging small and medium companies across the supply chain. 1 References to the GFSI certification of our facilities and ingredients suppliers do not include any facilities or suppliers associated with Lily’s, Dot’s, or Pretzels.

17 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Marketing Responsibly We are committed to For unmeasured media, like websites, video- By agreement, we allow selected third parties responsibly marketing sharing platforms or social media services, to display our well-known brands on a variety of we use a multi-factor analysis to determine high-quality food and non-food items to be sold our products. Our whether the media is child-directed, including in various outlets throughout the world. We are strong values guide our audience composition data (where available), also proud of the positive role our products play the nature of the site’s content and platform in raising funds for a wide range of organizations behavior in all aspects content identifier tools. We also do not use and programs, including elementary and of our brand-building third-party licensed characters for child- secondary schools. That said, in conformance directed advertising. with our voluntary pledges in the U.S. and work and consumer We submit data and information annually to Canada, we do not advertise our products communications. the CFBAI demonstrating compliance with our to children in elementary schools and we do commitments. CFBAI’s most recent compliance not license our brands for use on educational and progress report, which addresses the material or materials intended for use primarily We respect that caregivers play a crucial role performance of Hershey and all other in elementary schools. in teaching children healthy eating habits and participating companies. the appropriate role of treats and snacks in a balanced diet. We support this parental gate- In Canada, we participate in the Canadian keeping role, particularly for children under Children’s Food and Beverage Advertising the age of 12. Initiative (CAI), overseen by Advertising Our marketing principles stress responsible Standards Canada, which commits us to similar practices, particularly in relation to children. standards and principles as the CFBAI in the Hershey is a member of the U.S. Children’s U.S. CAI’s most recent compliance and progress Food and Beverage Advertising Initiative report, which addresses the performance of (CFBAI), which is a voluntary self-regulation Hershey and all other participating companies. program created to improve the landscape of In June 2021, the leading food and beverage food advertising directed at children. Under trade associations in Canada announced a new our individual CFBAI pledge, we commit to version of the voluntary code for advertising not engaging in advertising primarily directed to children, effective in mid-2023. Hershey at children under the age of 12. For measured will comply with the updated version of the media, like television, radio and print, we do not voluntary code when it comes into force. advertise on shows where 30% or more of the annual audience on average is composed of children under the age of 12.

18 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Staying Agile Through Change The pandemic has completely transformed The following centers offer distinct capabilities to build on: the marketplace. To sustain our business today and thrive in the future, we’re using innovation to adapt to a new reality. Using Technology to Rapidly Respond to Evolving Consumer Tastes In October 2021, we opened our newly renovated Global Customer Insights Center Global Customer Mobile Customer Insights The Hershey Insights (GCIC) at Hershey’s Pennsylvania headquarters. 1 Insigh ts Center (GCIC) 2Center (MCIC) 3Network (HIN) The GCIC is a part of Hershey Insights Centers Lab stations inside the GCIC offer First launched in 2018, the 53-foot HIN is a virtual platform for Hershey and now offers virtual and in-person services interactive content for retail partners expandable tractor-trailer includes a to remotely engage with its partners. to bring Hershey’s thought leadership on to see collaborative strategies brought collaborative workspace that seats up to Operating like a live television newsroom, it initiatives driven by shopper insights to life. to life. These environments include pay 15 people. It offers customers who cannot is equipped with a multi-camera studio and We have always seen customer collaboration points, seasonal solutions and in-aisle travel to Hershey a similar experience to green-screen capabilities to deliver solutions as critical to helping our retail partners unlock merchandising strategies with special the GCIC at their locations. After nearly to retail partners who may be unable to growth through our own unique shopper areas dedicated to food service and global two years of inactivity due to pandemic travel. The HIN was developed in response insights, knowledge of industry trends and licensing capabilities. restrictions, the MCIC kicked off a national to the pandemic but has become a way to access to the latest technology shaping today’s schedule of customer visits to all channels further enhance customer collaboration retail environment. starting in February 2022. sessions happening inside the GCIC. Data Protection and Privacy We respect the privacy of our consumers, customers, employees and others with whom we conduct business, and we handle their personal information with care. We are committed to complying with data privacy laws that prescribe how to responsibly collect, store, use, share, transfer and dispose of personal information wherever we operate.

19 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Our Progress KPIs FINANCIAL PERFORMANCE 2021 2020 2019 Countries in which our products are marketed 80 85 85 Number of countries in which our products are manufactured 6 6 6 Manufacturing facilities: wholly owned/joint ventures 15 14 15/1 Consolidated net sales (USD in millions) $8,971 $8,150 $7,986 Shareholder return 29.6% 5.91% 40.2% Adjusted diluted earnings per share (USD) $7.19 $6.29 $5.78 Income taxes paid (USD in millions) $275.2 $215.5 $238.1 Worldwide payroll (USD in millions) $924 $863 $834 One year net sales growth 10.1% 2.1% 2.5% Investment in R&D (USD in millions) $40.1 $37.6 $37.1 Number of brands >100 >90 >80 1 Weight of products sold (metric tons) 1,085,720 1,027,447 907,205 1 The weight of products sold result for 2019 reflects weight of product produced at Hershey-owned facilities, not weight of products sold. FOOD SAFETY AND NUTRITION 2021 2020 2019 Revenue from products labeled and/or marketed to promote health and nutrition attributes $644.4 $520.8 $432.3 2 (USD in millions) 2 These values represent revenue from our snacks portfolio, which includes ready-to-eat popcorn with no artificial ingredients, baked and trans-fat-free snacks, protein bars and other better-for-you snacks.

20 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Cocoa remains a key priority for Hershey. In sourcing cocoa for some of the world’s most iconic chocolate brands, Hershey seeks to promote Responsibly Shared Goodness for all stakeholders. Our Cocoa For Good strategy is designed to address systemic social and environmental challenges in cocoa Sourcing communities and help create a resilient future. Child labor, poor nutrition and deforestation are all symptoms of poverty. Through Cocoa For Good and our commitment to invest $500 million Cocoa in cocoa communities by 2030, Hershey seeks to contribute to disrupting the cycle of poverty in these communities. The portfolio of programs under our Cocoa For Good strategy works to improve cocoa farming as well as diversify incomes at the household level, educate families on the value of savings, empower communities, foster women’s leadership and improve the quality of nutrition and access to education.

21 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Cocoa For Good We’re working to Partners • Preserving Ecosystems make cocoa-growing Practices We work with experts from stakeholder Government of Côte d’Ivoire Rural Land We focus on four key interconnected groups — including suppliers and partners Agency (AFOR), Audace Institut Afrique communities stronger areas of impact: — to support field, farmer and community (AIA), Government of Côte d’Ivoire for generations to come. interventions. We also support public-private Ministry of Water Resources and Forests • Nourishing Children initiatives that align with our impact areas. (MINEF), German Agency for International We provide improved nutrition for Cooperation (GIZ), Impactum, Meridia, To do so, we have a clearly defined schoolchildren and training to support In 2021, our partners included: Nature Conservation Resource Center Ghana strategy that seeks to: home-based food security and (NCRC), Ghana Cocoa Board, Government children’s nutrition. • Nourishing Children of Ghana Ministry of Lands and Natural Improve farmer incomes Helen Keller International, International Cocoa Resources, Ghana Forestry Commission, and livelihoods. • Empowering Youth Initiative (ICI), Jacobs Foundation, Project PUR Project, USAID, Unilever, Winrock, We work with communities to combat Peanut Butter, Government of Côte d’Ivoire World Cocoa Foundation, Sourcemap. Eliminate child labor and child labor, improve the quality of National Nutrition Council, Government of improve children’s nutrition. education and encourage children to Côte d’Ivoire National Nutrition Programme Suppliers remain in school. We also work to equip (PNN), Innovations for Poverty Action (IPA), Protect the youth with life and business skills and Government of Ghana Ministry of Gender, Albrecht & Dill Trading Company, Atlantic environment. resources to break the cycle of poverty Children and Social Protection, Government Cocoa Company, Barry Callebaut, Blommer in their communities and become of Ghana School Feeding Programme. Chocolate Company, Cargill Cocoa & Purpose tomorrow’s leaders. • Empowering Youth Chocolate, Ecuakao Processing SA, FCStone, To support the people in the communities • Prospering Communities Aflatoun, INADES Formation, CARE General Cocoa Company, Guan Chong Cocoa, where Hershey sources its cocoa and support We economically empower women International, ICI, Jacobs Foundation, Save Indcresa Productos del Cacao, JB Cocoa, LIFE our business objectives to source cocoa that and partner with suppliers to provide the Children, Government of Côte d’Ivoire BV, Olam International, Plot, Tafi SA and United is socially and environmentally responsible. training and financial support to cocoa Ministry of Education and Literacy, Otumfuo Cocoa Processor, Inc. farmers and their families to grow their Osei Tutu II Foundation (Ghana). Principles business and diversify and stabilize their • Prospering Communities household income. CARE International, Farmerline, ICI, Ipsos, • We listen to farmers and their families • Preserving Ecosystems Espoir+, Empow’Her, PDA NGO, &Wider, and engage with local communities and We advance environmentally responsible United States Agency for International governments in cocoa origin countries, agricultural practices and promote Development (USAID), Vert+, World incorporating their feedback and supporting agroforestry and shade-grown Cocoa Foundation. people-led change. cocoa. We use polygon mapping • We partner with like-minded organizations to improve traceability, understand to drive change at scale. how and where cocoa is being grown • We track our performance and share our and monitor deforestation risk using successes and learning opportunities. satellite technology.

22 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Deeply Committed to Responsibly Sourcing Cocoa Hershey’s ability to live its By 2025, we aim to achieve 100% sourcing While Côte d’Ivoire and Ghana continue to purpose of Making More visibility in Côte d’Ivoire and Ghana by be the countries where the majority of our requiring that 100% of farmers producing programming is focused, in 2021 we continued Moments of Goodness Hershey’s cocoa volume in these implementing Cocoa For Good in Brazil, is supported by evolving countries are: Cameroon, Ecuador, Indonesia, Mexico • Polygon mapped by our suppliers to improve and Nigeria, increasing the number of farmers sustainability practices, traceability and monitor deforestation; and participating in programs as part of Cocoa For as well as input from, Good worldwide by 24%. • Covered by Child Labor Monitoring and and impact on, our Remediation Systems (CLMRS) to prevent, stakeholders. monitor and remediate child labor. Farmer groups and farmers participating in 68% As we deliver on our cocoa commitments, our Cocoa For Good strategy in Côte d’Ivoire sourcing visibility in we continue to evolve our ways of working, and Ghana together supply a significant Côte d’Ivoire and Ghana improve transparency for our key stakeholders amount of the cocoa we purchase worldwide. and provide consumers with robust assurances Clear visibility into how and under what about our products. We strive to create conditions the cocoa we source is grown and transparent and measurable policies that cultivated enables us to implement programs keep Hershey accountable to our goals, allow that focus on helping to improve farmer stakeholders to track our progress and create incomes, eliminate child labor and protect the alignment among our global teams. environment. Understanding the origin of cocoa is essential to ensure that it meets our human In line with our commitment to provide clarity rights and environmental requirements. around our specific cocoa sourcing initiatives, Responsibly sourcing cocoa and prioritizing our we have defined and provided additional human rights and environmental requirements context around our key priorities: requires collaboration between the public and 100% Independently Verified Cocoa private sectors including governments, our suppliers, farmers and manufacturers. All of our suppliers must agree to the Hershey Our commitment to improve farmer livelihoods Supplier Code of Conduct before delivering and incomes is unwavering, and we will continue cocoa to us. To continue to deliver on our to drive our requirements and evolve as we commitment of 100% independently verified learn to benefit farmers, their families and cocoa, which we achieved in 2020, we their communities. collaborate with third-party certifiers, including As of December 2021, we achieved 68% the Rainforest Alliance and Fair Trade USA, sourcing visibility of our cocoa volume as well as independently verified programs originating from Côte d’Ivoire and Ghana, through our suppliers. on track to reaching our 2025 commitment.

23 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Accountability, Transparency and Due Diligence in Cocoa Hershey takes a The results of the assessment are incorporated comprehensive approach into our overall engagement with suppliers, including performance conversations with a to human rights due mindset of continuous improvement. diligence in cocoa. We currently have action plans in place with suppliers for 2021–2023 that cover the majority This process covers country-of-origin risk of our cocoa volume needs. We will continue to assessments and a supplier sustainability review the assessment action plans through our assessment — the Hershey Company ongoing supplier engagement conversations. Sustainability Assessment — that evaluates We also continued to increase our suppliers’ policy commitments and accountability and transparency by publishing management systems to address topics like the farmer groups whose cocoa beans have child labor, forced labor, grievance mechanisms entered our supply chain. and living income. The survey enables us to: • Bett er understand and assess our direct suppliers’ commitments and actions around responsibly sourcing cocoa. • Iden tify potential risks within Hershey’s value chain. • Iden tify areas for improvement and work with our suppliers on their responsible sourcing journey.

24 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Working to Eliminate Child Labor Hershey does not tolerate Identifying and Addressing Due to case-by-case differences between child labor and/or forced What Is Child Labor? Child Labor child labor situations, remediation can be done Hershey uses the International Labour at the child, household or community level. labor within our value Organization (ILO) definition: Our regular review of key risks in the cocoa Remediation responsiveness, therefore, can chain and has formed supply chain (as outlined in our cocoa due range from almost instant (e.g., household Child labor is work that is mentally, diligence process on page 23) continues awareness training that is conducted when strategic partnerships physically, socially or morally dangerous to highlight the importance of monitoring, data is collected and/or cases found) to 6–18 with communities, NGOs, and harmful to children and/or interferes preventing and remediating instances of months (e.g., renovation of classrooms or with their schooling. child labor. school canteens to get kids back to school). governments and suppliers Not all work performed by children, such as CLMRS, championed by the ICI and proven Children identified as victims of child labor to eliminate it from helping their parents around the home and to be an effective measure in helping to receive two or three follow-up visits over occurring within cocoa assisting in a family business, is classified as protect against child labor, is the leading several months to establish whether they are child labor. Such activities are sometimes method of child labor detection and out of child labor. Continued monitoring then communities. referred to as “light work.” remediation among children aged 5–17 years reveals whether those children stay out of child The worst forms of child labor put children old. It is implemented by supply chain partners labor consistently or are identified once more In cocoa-growing communities, child labor is a at the greatest risk and are the highest and community-based groups that identify engaging in potentially hazardous activities. complex issue resulting from a mix of poverty, priority for elimination. Most instances child labor and monitor and help remediate cultural norms and misunderstandings about of inappropriate child labor involve tasks when cases are found. Supply chain partners what constitutes appropriate child work. In such as carrying heavy loads like firewood are responsible for collecting and reporting on many communities, child-appropriate work or water, contact with agrochemicals or this data. on the family farm or in the household is an clearing of land with sharp tools. Hershey began implementing industry aligned important part of young people’s learning and Child labor is distinct from forced labor, best practice CLMRS executed by supply chain cultural development. However, a lack of stable which is defined by the ILO as: and community partners in 2018. Supply chain income and educational opportunities in rural and community partners identify potential child areas can lead families to depend on children Situations in which persons are coerced labor situations and investigate, monitor and putting in long hours at home and on the farms, to work through the use of violence or remediate when cases are found. For Hershey, which are often the families’ sole source of intimidation, or by more subtle means “remediated” means that through our supply income. Paired with lack of awareness about such as accumulated debt, retention of chain partners a child has received mitigation appropriate work, this puts children at risk of identity papers or threats of denunciation efforts appropriate to their situation, such as performing farm work that is hazardous to their to immigration authorities. being enrolled in school. As a result, the child health and development. no longer participates in activities defined as Not only does child labor pose a potential Hershey is a member of ICI’s Forced Labor child labor and is no longer at risk of being danger to children, it also plays a role in further Sub-Group, working with our peers and enlisted to undertake these activities. entrenching intergenerational poverty in technical experts to advance knowledge, rural communities. skills, and action on preventing, monitoring, identifying and addressing forced labor in Hershey has developed a multifaceted cocoa supply chains. approach that includes improving community and farmer awareness. We also invest in preventive, supplier-led approaches that monitor farmers to check that child labor is not occurring and providing resources and oversight to help remediate instances of child labor if they are found.

25 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report We also support the establishment of How CLMRS Is Helping Keep Kids Safe community-level child protection committees. Composed of trusted community members, these groups are in the best position to raise awareness, identify cases of child labor and The report implement the most appropriate practices is verified to remediate those cases. Depending on the type of child labor detected, remediation Any child involved support is conducted at the child, household in hazardous activity is 3 or community level. identified and information The data is used Successful child labor remediation strategies vary about his/her situation to design actions and need to respond to the needs of individual is recorded in a 2 4 in support of children and their families. They may also be centralized database children identified dependent upon the presence of government social welfare agencies to which cases can be referred for additional follow-up by local authorities. By increasing farmers’ awareness of what constitutes child labor (such as children carrying heavy loads and being exposed to farm Community Children and their pesticides) and improving farmers’ and families’ facilitators families receive ease and efficiency of completing tasks around visit every farm 1 5 remediation support the farm, children are less likely to participate in assigned to their from supply chain dangerous farm tasks. farmer group facilitators and NGO partners or are referred To see our key performance metrics to public services, from the year, see page 31. an approach that is aligned with practices recommended by the ILO What’s Next We will continue to invest funds to improve the quality of CLMRS and to expand it with the aim of ensuring that no child is overlooked, and everyone receives the support they need. Our CLMRS covered 62% of Hershey cocoa volumes, on the way to achieving our goal of 100% by 2025. As of 2021, Hershey’s CLMRS 62% found no evidence of forced child labor in our programs in Côte d’Ivoire and Ghana. Almost of Hershey cocoa volumes 2,000 children were either remediated or have are covered by CLMRS aged out of the CLMRS.

26 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Prevention Is the Priority Preventing Child Labor Through Addressing Child Labor Through Knowing that children will be fed at school Access to Education Our 2021 Impact School-Based Nutrition is another reason to ensure they go to class • 45,000 children received daily servings rather than to work, making it an important 1 As part of our efforts to eliminate child labor, of ViVi, our vitamin-fortified, peanut- Not only does a full stomach improve a preventive tool in the fight against child labor. we seek to proactively prevent child labor based, ready-to-use therapeutic food. student’s ability to concentrate and learn, it can Research Hershey commissioned shows that by removing barriers to children being able also be the deciding factor between whether providing ViVi improves children’s health to attend school and by encouraging school • 12,627 children enrolled in primary or not a child attends school. In collaboration and increases school enrollment and regular attendance through our school feeding schools that benefited from quality with Ghana’s Ministry of Gender, Children and attendance while also enabling improved initiative. We focus significant resources and education interventions. Social Protection, the Ghana National School academic performance.2 effort on making it easier for children to access • 1,883 school kits provided. Feeding Programme and our suppliers, Hershey and continue their education, such as by has been distributing ViVi daily to school improving education infrastructure, training • 1,466 birth certificates obtained to enable children in cocoa-growing communities in school-parent management committees, access to school. Ghana since 2015. providing school kits filled with important ViVi, developed by Hershey and our school supplies, distributing vitamin-fortified, • 25 classrooms renovated. partner Project Peanut Butter, provides peanut-based, ready-to-use therapeutic food To see our key performance children with 30% of their daily nutritional to schoolchildren and helping children and metrics from the year, intake requirements. In 2021, we reached youth obtain birth certificates for see page 31. approximately 25,000 children daily in Ghana. school enrollment. In addition, ViVi is produced in Ghana in a In October 2021, we signed a five-year factory that employs 30 local men and women agreement with the Jacobs Foundation, the and provides a secure market for more than 20 Government of Côte d’Ivoire Ministry of Ghanaian peanut farmers. Education and Literacy, and 14 other chocolate In February 2021, production and distribution producers and cocoa suppliers to implement began in Côte d’Ivoire, thanks to a partnership the Child Learning and Education Facility with the country’s National Nutrition Council (CLEF). This new public-private initiative will and a new Hershey-funded ViVi factory at contribute to improved foundational literacy San Pedro, in southwestern Côte d’Ivoire. and numeracy skills for five million children at The trial distribution reached 2,552 students. primary school level and includes an investment By September 2021, distribution expanded in 2,500 new classrooms. to reach 20,000 school children daily in the regions of San Pedro and Haut-Sassandra. We expect further growth of the project in Côte d’Ivoire in 2022. 1 Education quality and child labour publication | ICI. 2 Steiner-Aseidu, M. (Prof) and Saalia, F.B. (Prof) (2016–2018) A Pilot Study to Determine the Efficacy of Consuming Highly Fortified Groundnut Nutritional Supplement on the Nutritional Status of School Children, University of Ghana.

27 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Lifting up Rural Livelihoods Several overlapping Supporting the Development Improving Income Through Supporting Income Diversification factors contribute to the of Farmer Groups Farm Development Plans To help diversify economic opportunities, prevalence of poverty Farmer groups are essential platforms for farmers We support farmers in achieving economic we support cocoa community members in in cocoa-growing to unify their voices to increase their earning gains by actively exploring how to improve their developing alternative means of generating potential and economic resilience. In 2021, farming practices through creation of tailored income. In 2021, more than 2,600 community communities. through Cocoa For Good, Hershey expanded farm development plans. Through Cocoa For members were trained in alternative income- its support to 102 farmer groups, reaching more Good and associated farmer groups, farmers generating opportunities, such as soap making than 94,300 farmers through our suppliers have access to higher-yielding cocoa varieties and cassava processing. These factors include low access to credit, across seven origins. and are trained on the proper pruning of shade limited negotiating power for farmers to set and cocoa trees, fertilization and irrigation, crop prices, a singular reliance on cocoa for Our support has assisted these farmer groups and weed and disease control. Farmer group income, falling cocoa yields as cocoa trees age, and farmers in receiving independent verification members also have improved access to credit illiteracy, a lack of proper business and financial of their cocoa in compliance with credible and loans to make further investments in their training and persistently disempowered women. sustainability standards. This action not only farms. In 2021, this support included more than Additionally, we know that the cycle of poverty helped us reach our goal of sourcing 100% 31,000 farm development plans. continues to exacerbate the existence of child independently verified cocoa but also ensures labor and deforestation in these communities. the farmer groups and farmers are paid a higher Our aim is to support cocoa farmers’ transition premium for their harvests. out of poverty, and we support development of Farmers receive direct cash payouts from the multiple opportunities to increase income and certification premium, which enables them to build resilience. reinvest in their farms and their families. At the group level, the certification premium is used to further strengthen the resiliency of the group as a whole through investment in shared equipment and capacity building, like training on climate-smart cocoa techniques and income- diversification opportunities.

28 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Supporting Women in Achieving In addition to providing an invaluable service Economic Independence to farmers, in 2021, these community pruning teams provided 372 young adults (39 of them Village Savings and Loan Associations (VSLAs) women) in cocoa-growing communities with are a simple, accessible way to help individuals valuable skills and knowledge about cocoa — especially women — and communities farming, while also helping to support their learn about saving, borrowing and investing families with extra income. responsibly. The groups’ members are likely to be either completely unbanked or unable to Continuing Our Work to Understand qualify for a loan through traditional financial and Promote Farmer Incomes providers. In VSLAs, loans are based on trust among group members. The groups also create In 2021, we published our Living Wage & Income a small solidarity fund that is dispensed either Position Statement and began taking additional for collective problems (such as repairing a steps to understand the gaps between farmers’ village water pump) or individual emergencies. current income and a living income. Working Hershey now directly supports nearly 200 VSLAs with the research firm Ipsos, we implemented a with 5,879 members, 79% of whom are women. new biannual impact assessment methodology Thanks to collective savings, the VSLAs provided to capture data on farmer and household an invaluable source of funds to boost financial income. This research will allow us to measure resilience and security during the pandemic. the efficacy of our programs in addressing farmer livelihoods, including improving income. In Empowering Youth conducting our research, we use benchmarks To break the intergenerational cycle of poverty, endorsed by the Living Income Community of today’s youth in cocoa communities (defined Practice (LICOP), which defines living income as: as 15- to 35-year-olds) need to be equipped “The net annual income required for a household with life skills, technical and vocational skills in a particular place to afford a decent standard and the practical knowledge and tools needed of living for all members of that household.” to become self-sufficient community leaders Collection of baseline data was completed in late of the future. We support youth economic 2021 for Côte d’Ivoire and will finish in Ghana in empowerment through access to vocational early 2022. Initial results suggest that while only training, land tenure documents and the a small percentage of cocoa farming households development of income-earning opportunities earn a household income above the Living such as community pruning teams. Pruning Income Benchmark, the majority are above the teams are groups of up to 10 young adults who national poverty line in Côte d’Ivoire. Further help provide essential pruning services to cocoa analysis will be focused on better understanding farmers in their communities. Regular pruning how the Cocoa For Good program can support of cocoa trees helps to prevent tree mold and farmer livelihoods to increase the percentage of diseases and reduces the need for farmers to households above the Living Income threshold. apply agrochemicals and pesticides. For our key performance metrics from the year, see page 31.

29 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Fighting Deforestation In cocoa-growing Farm Locations In addition, in Zégo, a town in Côte d’Ivoire’s Continuing Our regions in West Africa, and Deforestation Lôh-Djiboua region, CLAP provided members Landscape Programs of the village land management committee with deforestation and Throughout the past few years we funded technical training on the use of GPS devices to We continued our Kakum Agroforestry biodiversity loss are comprehensive mapping of cocoa farms in Côte record land rights, with a special focus on land- Landscape Program partnership in Ghana, d’Ivoire and Ghana where our suppliers source use contracts with tenants. Benefiting from which covers an area equivalent to 20 times a manifestation of a the cocoa volume used in Hershey products. fit-for-purpose technology, community members the size of Manhattan and includes the Kakum complex set of root causes The mapping provides a baseline deforestation can now record land rights locally and formalize National Park, an intact tropical rainforest rate through measuring annual tree cover owner-tenant agreements, something previously covering 145 square miles (375 square including poverty, the loss and closely monitoring farm locations for cost-prohibitive for these communities. kilometers) that is home to antelopes, elephants, absence of land titles, encroachment into protected forest areas. monkeys and a number of other endangered wildlife species. This partnership promotes a lack of clarity on land Securing Land Titles to Unlock and supports community-led landscape tenure arrangements, Land Value management, spreads climate-smart cocoa- growing practices and provides training for extra limited knowledge of good Without proper land titles, it is difficult for income-generating activities. agricultural practices and farmers to access financing or make necessary resource-challenged law changes on their farms to prevent deforestation, promote reforestation and apply agroforestry enforcement agencies. and climate-smart cocoa farming. Through our partnership with the USAID To stop deforestation in our supply chain, Integrated Land and Resource Governance Hershey is investing in helping farmers secure (ILRG) Project, we support communities in land titles where they farm, spreading climate- Ghana to clarify and document land rights as well positive farming methods and investing in as improve land-use planning practices through protecting the uniquely rich ecosystems where agroforestry. In 2021, our engagement with ILRG cocoa is produced in Côte d’Ivoire and Ghana. and one of our suppliers, ECOM, assisted 1,244 farmers in acquiring land title documentation. Since 2018, Hershey has publicly committed to In 2020, we co-launched with the German no new deforestation in our global cocoa supply Agency for International Cooperation (GIZ), the chain and to implementing shade-grown cocoa Government of Côte d’Ivoire and other partners with agroforestry tree-planting programs. In the Côte d’Ivoire Land Partnership program 2021, Hershey supported the nationwide “1 Day, (CLAP) to promote affordable land titling as a 50 Million Trees” reforestation campaign led by catalyst for halting deforestation. Due to our the Ministry of Water Resources and Forests in intervention and design of relevant land tenure Côte d’Ivoire. documents that are government sanctioned and community accepted, this partnership was able to shorten the time of delivery and costs of securing land titles, greatly improving farmers’ access.

30 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Promoting Cocoa Promoting Climate-Smart Cocoa Our Impact Agroforestry in Ghana As we help more farmers to gain control of • 46% farmers polygon mapped in Côte d’Ivoire their land, we are also promoting climate-smart and Ghana. In 2021, we improved our data The Kakum Cocoa Agroforestry Landscape So far, the project has developed growing techniques. In 2021, 41% of Cocoa collection and data validation to increase Project engages the chocolate and cocoa management plans covering nearly 40,000 For Good farmers in Côte d’Ivoire and Ghana confidence in the numbers reported sector companies along with the Ghana hectares of cocoa, food crop and forest- were trained on climate-smart cocoa using from suppliers. Cocoa Board, Ghana Forestry Commission fallow lands in more than 80 communities a curriculum Hershey helped develop. We • 118,000 hectares of landscape programs and the Nature Conservation Research that border the Kakum National Park. In anticipate expanding access to this training by supported and monitored. Centre. The project fosters sustainability at a addition, the project is implementing cocoa making the content available via a free app. landscape scale — both on farms and across agroforestry activities and climate-smart Cocoa For Good farmers worked on 219,321 For our key cocoa metrics from the surrounding expanse of cocoa and forest interventions that benefit thousands of hectares of cocoa area across seven origins in the year, see page 31. lands — in the environment surrounding cocoa farmers and their communities. This line with sustainable farming practice, including world-renowned Kakum National Park, in includes planting more than 30,000 multi- promoting shade grown agroforestry, specific Ghana’s Central Region. purpose shade tree seedlings since 2018. tree species, tree handling and planting and the The initiative supports the development of Many farmers in these communities have management of trees after planting. Find out an innovative community-based landscape also benefited from income diversification more about our progress against public targets in governance system to improve natural through harvesting and selling kombo nuts. Hershey’s dedicated CFI reports. resource management, reduce deforestation Over the long term, the project will transform and enhance forest protection. At the same the Kakum cocoa-forest landscape toward What’s Next time, it aims to expand cocoa agroforestry a more sustainable agroforestry system, in practices and income diversification through which forests are protected, cocoa farmers We will continue our engagement in our current emerging botanical supply chains. and their families experience improved landscape initiative and are exploring new well-being and empowerment, and socio- landscape initiatives in Côte d’Ivoire. In addition, economic and ecological resilience to we will continue to promote agroforestry, climate change across the landscape is advocating for climate-smart cocoa and strengthened. affordable land titling as well as community-led natural resource management.

31 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Progress Target Progress Goals Year (as of Dec. 31, 2021) COCOA 100% independently verified cocoa 2020 Achieved 100% 100% sourcing visibility of Hershey’s cocoa volume in Côte d’Ivoire and Ghana 2025 On Track 68% 100% of farmers producing Hershey’s cocoa volume in Côte d’Ivoire and Ghana are polygon mapped 2025 On Track 1 by our suppliers to improve traceability and monitor deforestation 46% 100% of farmers producing Hershey’s cocoa volume in Côte d’Ivoire and Ghana are covered by Child Labor 2025 On Track Monitoring and Remediation Systems (CLMRS) to prevent, monitor and remediate child labor2 62% 1 Beginning in 2021, to be considered polygon mapped, all farm plots managed by the farmer must be mapped, as defined by the World Cocoa Foundation. Previously, a farmer was considered polygon mapped if at least one plot of land was mapped. 2 This refers to households covered by CLMRS. KPIs 3 PREVENTING CHILD LABOR 2021 2020 2019 4 102,942 45,921 35,032 Children monitored Children identified via CLMRS in Côte d’Ivoire and Ghana doing inappropriate work and in process 11,519 6,829 4,616 5 of remediation 6 1,899 Not applicable Not applicable Children identified as no longer doing inappropriate work Children identified in forced labor 0 0 0 Capacity Building — Monitoring and Remediation Agents and Community Liaisons 841 1,514 1,402 (paid and volunteers) ViVi on a daily basis (Côte d’Ivoire and Ghana) 45,000 27,142 58,300 Total number of children receiving 3 LIFTING UP RURAL LIVELIHOODS 2021 2020 2019 Farmer groups supported through Cocoa For Good 102 91 64 Farmers supported through Cocoa For Good 94,309 (11% female) 83,783 (14% female) 51,009 (12% female) Farm development plans 33% (31,281 plans) 32% (27,147 plans) 37.1% (20,695 plans) Farmers receiving individual coaching 44% (41,385 farmers coached) 32% (25,879 farmers coached) 27,428 farmers coached Total community members trained on nutrition and health 17,200 41,029 11,050 7 2,658 Not applicable Not applicable Community members trained in alternative income-generating activity 3 Data reflects results as provided by Hershey suppliers and implementation partners. 6 These cases have been remediated or children have aged out of CLMRS. This is a new KPI, aligned to the ICI protocol. 4 This refers to children in households covered by CLMRS. 7 This KPI was previously reported as community members trained in additional livelihoods and has been updated to align with 5 Results are cumulative since 2018. the World Cocoa Foundation Monitoring, Evaluation and Learning framework.

32 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report KPIs 1 SUPPORTING WOMEN IN ACHIEVING ECONOMIC INDEPENDENCE 2021 2020 2019 Number of VSLAs supported 199 184 253 Total VSLA members 5,879 (79% female) 5,946 (82% female) 6,771 (83% female) Total savings and interest accrued annually (reported cumulatively from 2019 t o present) $1,112,456 $744,394 $397,813 (cumulative 2019-2021) (cumulative 2019-2020) (2019 only) 1 Data reflects results as provided by Hershey suppliers and implementation partners. FIGHTING DEFORESTATION2 2021 2020 2019 3 Total non-cocoa trees distributed 554,326 338,533 428,766 4 Total cocoa seedlings distributed (across global cocoa origins) 1,020,850 1,058,554 1,311,824 Land titles acquired with Hershey’s assistance 1,244 622 70 49,569 5 Total farmers with all their farm boundaries mapped via GPS polygon mapping Farmers in Côte d’Ivoire and 45,242 44,770 Ghana with all farms mapped Total farm area mapped in Côte d’Ivoire and Ghana (in hectares) 136,108 119,537 102,084 2 Data reflects results as provided by Hershey suppliers and implementation partners. 3 Non-cocoa trees include trees that provide environmental (cocoa companions), nutrition (e.g., fruit) or economic (e.g., timber) benefits. 4 Additional trees planted and tree seedlings distributed data, unrelated to the cocoa tree data, is included in the Accelerating Sustainability with Hershey Green Teams KPIs on page 60. 5 The methodology for this KPI changed in 2021 to be more stringent. To count one farmer as being mapped, all the farms must be polygon mapped. The scope of this KPI applies to Côte d’Ivoire and Ghana.

33 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report g n i t o h As a snacking powerhouse, we are D e committed to growing sustainably and acting responsibly in each stage of our value chain. R From protecting and respecting human rights in a complex supply chain to upholding high safety standards in i g production and championing consumer g choice and transparency, Milton Hershey’s legacy to always do the right thing remains as deeply embedded in our culture now as n it was when our company was founded. h i We continue to use our global reach to t create positive impact. We are working h across our supply chain to help the people T behind our raw materials cut their carbon footprint, tackle commodity-driven deforestation, uphold human rights and enhance their economic security.

34 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Human Rights Across Our Value Chain For more than 125 years, The remarkable and diverse people we employ and our Human Rights Policy, which we Hershey has operated with and the individuals who work along our value developed using the UN Guiding Principles Bringing Due Diligence chain are some of our most important assets. on Business and Human Rights (UNGPs) to Life the understanding that we We use an approach that identifies, evaluates along with our Supplier Code of Conduct are integral members of and prioritizes action on the most significant, (SCOC) and Responsible Recruitment & In 2021, the qualification process of a relevant risks to people, enabling everyone Employment Policy. potential supplier in the Gulf region the communities where to exercise and enjoy their fundamental identified a labor practice that was we live and work. human rights. We have several standards and Our Due Diligence inconsistent with our Responsible expectations that guide our initiatives in this Recruitment and Employment Policy. space, including the Hershey Code of Conduct Our approach to human rights due diligence Consequently, our Responsible Sourcing is guided by the UNGPs and represents an and Human Rights teams determined that ongoing risk management process that enables further on-site assessment was needed us to identify, prevent and mitigate current and and engaged the sustainable business potential human rights risks throughout our consultancy twentyfifty to conduct an e value chain. It is informed by a risk methodology in-depth Participatory Human Rights c s c s A Assessment of the potential supplier. e that we developed with the leading human wat r an o d t nitation rights nonprofit Verité. sa C We had great engagement and support ild c lim from the supplier’s corporate leadership, h r h a We continually perform due diligence on C o a t b n e la ge our own facilities and on high-risk suppliers plant managers and workers (including identified through our risk assessment process. international migrant workers). The Our Responsible Sourcing and Responsible assessment involved a two-day on-site visit r m A of the facility and dormitories, participatory o n g c Recruitment Supplier Programs conduct b a g e r a c ie c specific due diligence on human rights and interviews, focus groups and a mapping l n e m i h v d u k a a s labor topics — see page 39 for more details. exercise for migrant workers to share their e h c n n s c Salient Issues c t journey, suggestions for improvements and r d f is e o We also include human rights risk screening o n ra m aspirations for their careers and futures. F a t Identifying and in our supplier qualification process to assess addressing the most s forced labor and other human rights risks before Many workers spoke positively of their entering into commercial relationships — see experience, with some of them having a La pressing human rights n page 39 for more details. worked at the company for 15 to 20 c nd issues across io years. Some important opportunities for q t ui rig our value chain ta In 2021, we strengthened language around improvement were identified, including a si h s forced labor in our commercial contracts more formal time and attendance system t e i t r on s/ fo for suppliers of plush cotton, palm oil and to monitor working hours, a new system for De renewable energy. This process goes above holding identity documents and human and beyond what is in our SCOC, with clear rights due diligence training for human requirements and expectations around resources staff. We are currently working w Li n’s production document records and traceability. v e t with the site on corrective actions and ag ing m nden i e o a nco and Wghts erm Finally, we used the Better Buying Survey will continue our ongoing monitoring and me Safety ri ow to research and explore the links between reporting activities. a p nd health em purchasing practices and human rights. For more information on this program, see page 39.

35 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Engaging With The surveys covered topics such as the Ensuring Responsible Recruitment Rightsholders recruitment process, contract transparency, and Preventing Forced Labor working hours, wages, discrimination and Hershey recognizes the importance of harassment, freedom of movement, grievance Our Approach Our Achievements engaging with those who are impacted by our mechanisms and overall well-being. We’re building the capacity of labor agencies • Completed due diligence on 68 labor work — from farmers and their communities to In India, we found that a small group of workers to strengthen management systems that agencies in Brazil, Canada, India, Malaysia, our employees, consumers and others. We have had paid nominal fees for their uniforms — these promote responsible recruitment. This Mexico and the U.S. identified vulnerable stakeholders and tailor our were immediately repaid. New controls were includes labor agency completion of a methods and frequency of engagement to their put in place to ensure that this practice is not Self-Assessment Questionnaire (SAQ) and • Conducted human rights assessments individual needs to maximize our impact. used again by any of the recruitment agencies Hershey desktop verification of their policies and Sedex Members Ethical Trade We partner with suppliers and multiple NGOs we work with. Additionally, we implemented and procedures to understand how our Audit (SMETA) 2-Pillar audits on our on issues such as deforestation and child labor. a new electronic badging system to ensure expectations are being upheld. labor agencies in Malaysia to identify In addition, we participate in several industry that contract workers always maintain improvement opportunities. forums to promote dialogue and help drive the possession of their identity documents while We developed guidance training that we • Remediated 86% of the findings identified uptake of best practices. still being able to meet the facility’s food safety shared with smaller agencies to help them in desktop due diligence, with the quality requirements. identify root causes of nonconformities and remainder in progress. Our Hershey team members, suppliers and implement effective corrective actions. NGO partners also conduct regular visits In India, we also implemented new training We continue to offer all labor agencies in the We Support: with cocoa farmers and their communities for agency workers on the Hershey’s Concern program access to RLI’s E-Learning Academy. throughout the year. Hershey maintains Line — and raised awareness of it through more • The Employer Pays Principle ongoing investment in sustainability programs, on-site posters — and trained agencies on • The Consumer Goods Forum’s Priority including CLMRS and other initiatives under Hershey’s grievance procedures. Industry Principles our Cocoa For Good program. We engage workers and farmers directly Our Commitments: through on-site and mobile surveys. To obtain • Responsible Recruiting & direct feedback from our employees on their Employment Policy working experience, we hold regular town halls and conduct quarterly pulse surveys. • Supplier Code of Conduct (SCOC) Direct Worker Engagement Our Engagement: “Worker Voice” • The Responsible Labor Initiative (RLI) Hershey recognizes the importance of tools 712 that directly engage workers and farmers on contract and temporary workers For a summary of our goals their experience. In 2021, we piloted three and farmers shared their experience and KPIs on responsible worker engagement surveys in India, Malaysia of being part of Hershey’s recruitment, see page 43. and Côte d’Ivoire that empowered more than supply chain 712 contract, temporary workers and farmers to share their experience of being part of Hershey’s supply chain.

36 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Grievance Mechanisms Some specific examples of how we Training and Access to Remedy provided remedy in 2021 include: • Repayment of the cost of uniforms to contract To fully embed a human rights culture within our We provide access to effective remedy, in workers in our India facility. company and across our value chain, we have line with the UNGPs, when our business may • Provision of birth certificates, school kits and committed to training 100% of our procurement cause or may contribute to adverse human bridging classes through the CLMRS system. professionals on human rights. The training rights impacts. We also use our influence with covers Hershey’s salient human rights issues suppliers and business partners to encourage More detailed information on our human rights — including forced labor and child labor — the provision of remedy when we find issues due diligence approach, the results of our risk the UNGPs, human rights considerations in linked to our supply chain. assessment process and our work with Verité purchasing practices and how to be an internal We implemented mechanisms that enable our can be found on our website and in our Modern champion for human rights. employees and other individuals in our supply Slavery Statement. In 2021, we maintained our commitment to chain to report grievances and seek resolution. training 100% of procurement professionals Our mechanisms do not prevent complainants on human rights. We also expanded the from using other channels or procedures, such requirement to our international supply chain as local law enforcement agencies, to resolve and licensing teams as well as to The Hershey their issue where relevant. We also partner with Experience, our global retail operations. As other organizations to help prevent, mitigate of December 2021, 93% of required Hershey and remedy adverse human rights impacts. employees have taken the human rights training and have achieved the required score of 80% Some of our primary grievance or higher to pass. Since its launch, nearly 1,400 mechanisms include: Hershey employees have successfully completed • Hershey’s Concern Line (available in more the training. than 47 languages), which is primarily geared toward our employees but is also accessible to our suppliers and other stakeholders. • The requirement that our direct suppliers have grievance mechanisms, which we validate via social compliance audits and our cocoa and palm oil supplier sustainability assessments. • Our public Palm Oil Grievance Process. • Grievance mechanisms made available through certification bodies or standards- setting organizations.

37 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Living Wages Amplifying Equality and Income and Opportunity in We believe that all individuals deserve the Our Supply Chain opportunity to earn a decent standard of living We believe that, at its core, systemic racism is and that being paid fairly is a cornerstone of a human rights issue. We have a longstanding human rights. In 2020, Hershey followed the commitment to DEI and we are accelerating our guidance of the UNGPs to determine where efforts to be a more inclusive company individuals are most likely to experience wage (see page 67). and income-related vulnerabilities, particularly where Hershey has significant leverage and influence. This resulted in our new Living Wage Climate Justice & Income Position Statement. and Human Rights In 2021, we furthered our commitment Climate change poses a significant threat to promoting living wages globally by: to human rights globally. Its impacts • Reviewing all our global full-time employees disrupt global food supplies and threaten against BSR benchmarks to confirm we are livelihoods. Vulnerable communities will maintaining our commitment and adjusted the be disproportionately harmed by rising wages of two employees in Canada who had temperatures and the related safety and fallen below updated benchmarks. water scarcity risks. • Joining the IDH business call to action on Our supply chain includes many communities living wages. that will be impacted if the world does not take • Joining the new Living Wage for US initiative bold action. As such, we are committed to doing as affiliate members. our part to act on climate change. • Co-chairing the AIM-Progress Living Wage and Income Working Group and co-authoring Read more about our climate the AIM-Progress Better Business Through commitments on page 49. Better Wages Statement. • Co-funding the development of the IDH Manufacturing Salary Matrix. • Developing an internal analytics dashboard to visualize all Hershey employee wages against multiple living wage benchmarks • Working with the research firm Ipsos, we have put in place a new biannual impact assessment methodology to capture data on cocoa farmer income in Cote d’Ivoire and Ghana. For more information on Ipsos, see our Cocoa chapter on page 28.

38 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Where We Source Our Ingredients Canada Hershey actively works to responsibly source raw ingredients and • Flour materials for our delicious snacks. This map highlights many of the • Soy origin countries of several of these resources. Almonds Cocoa Coconut Dairy Flour Palm oil Peanuts Pulp Soy Sugar and paper U.S. • Almonds • Dairy • Flour India • Peanuts • Soy • Pulp and paper • Soy Ghana • Sugar Belize Philippines • Sugar • Cocoa Nigeria • Coconut • Cocoa Mexico • Cocoa Cameroon • Sugar Côte • Cocoa d’Ivoire Malaysia Ecuador • Cocoa • Palm oil • Cocoa Indonesia • Cocoa • Palm oil Brazil New • Cocoa Zealand • Dairy • Pulp and paper • Soy • Sugar Disclaimer: The map does not include all geographic locations, ingredients or sourced materials.

39 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Responsible Sourcing Our Responsible Sourcing Strategy is designed to Prioritization was based on our initial risk Supplier Engagement and Training deliver positive impact and long-term sustainability assessment of 1,300 direct raw material We engaged with suppliers to assess links and packaging suppliers, as well as co- between purchasing practices and social in Hershey’s end-to-end supply chain in collaboration manufacturers, copackers, licensees and The compliance through the Better Buying with our suppliers and industry partners. Hershey Experience vendors. Institute’s Partnership Index survey. A total of We are on track to achieve our goal of 85% of in 142 enrolled suppliers were invited to respond scope supplier sites demonstrating compliance to the 12-question survey and provide feedback Responsibly Sourcing with our program requirements through on Hershey’s buying practices. We are analyzing Our Strategy to Source Our Goods and Services achieving green audit results. By the end of feedback to understand best practices and Responsibly 2021, 25% of suppliers had achieved a green continuous improvement opportunities related Our global network of owned operations, audit result. to how our buying practices can impact the Our Responsible Sourcing Strategy is suppliers and business partners are critical to financial, environmental and social sustainability guided by our Human Rights Policy and how we ethically and sustainably provide great- Our 2021 Progress of our suppliers. our Environmental Policy, and includes tasting, high-quality products to our consumers. We provided capacity-building training to a four key focus areas: Hershey facilities undergo a SMETA 4-Pillar Enhancing Supplier Screening number of suppliers through internal trainings 1 and partnership with AIM-Progress in Côte Responsibly Sourcing audit every three years, or more frequently We refreshed our risk assessment across more Goods and Services as needed based on issue remediation or than 900 suppliers not initially enrolled and d’Ivoire, Ghana and China. Looking ahead, customer requests. included new areas within our company, such as we continue to work with our suppliers on Fostering Sustainable Through our Responsible Sourcing Supplier our World Travel Retail Group. developing long-term corrective actions Agricultural Communities Program (Supplier Program), we verify and for all open findings through targeted monitor our Tier 1 suppliers’ compliance with We integrated responsible sourcing and capacity building. Promoting our SCOC. The Supplier Program is aligned human rights risk screening into our ingredient Transparency with our human rights saliency assessment, supplier and co-manufacturing/packaging Read more about our Supplier uses independent third-party verification qualification process. Prior to entering into a Program requirements on our website. Building Hershey’s tools, including SMETA 4-Pillar audits, to commercial relationship, suppliers respond to Capabilities monitor compliance and proactively identifies questions about their management systems opportunities for future due diligence. We related to human rights, labor topics and support suppliers’ continual improvement ingredient certifications as required in our through corrective action plans and supplier and ingredient information forms and Our approach was created in consultation with capacity building. pre-audit checklist. Supplier self-assessment diverse internal and external stakeholders, questionnaires and social compliance audits are including suppliers, customers, human rights The Supplier Program helps strengthen the also reviewed. groups and multiple NGOs that work in our raw long-term sustainability of our supply chain. This screening has been successful in material value chains, among others. By the end of 2021, we achieved our goal of identifying risks, resulting in 6% of suppliers not enrolling 100% of the 450 high-risk suppliers being approved for use due to human rights or and sites that were prioritized for due diligence. environmental risks. 1 The Sedex Members Ethical Trade Audit (SMETA) 4-Pillar audit protocol is composed of four modules: Labor Standards (including human rights and forced labor topics), Health and Safety, Environment and Business Ethics.

40 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Fostering Sustainable • Origin-level and transformation Agricultural Communities Through investments: investing in Hershey, supplier Cocoa Our Priority Ingredients and other partner-led origin-level programs focused on environmental, social and Cocoa remains Hershey’s highest In 2020, we analyzed the global environmental economic issues. priority ingredient. and social risks known in our ingredients and • Industry engagement: participating in For more details, see our Cocoa raw materials supply chains alongside spend industry-wide partnerships to enable systemic chapter, beginning on page 20. data to identify priority supply chains for change, as companies cannot solve these responsible sourcing due diligence, investment complex sustainability challenges alone. and programming. We identified five priorities: cocoa, dairy, sugar, palm oil, and pulp and paper. In 2022, we will refresh our priority ingredients This prioritization helps us target where we can risk assessment to account for 1) changes in make the biggest impact while reducing risks in our supply chain, including the acquisitions of our supply chain. Lily’s, Dot’s and Pretzels; 2) developments in After achieving many of our 2020 responsible our human rights and environmental strategies, sourcing ingredient commitments, in 2021, such as the intersection with nature and water; we established new and ambitious goals and 3) changes in sustainability risks. and strategies across our priority ingredients For a summary of our goals and and materials. KPIs related to responsible sourcing, Our responsible sourcing commitments see page 43. account for social and environmental challenges faced in the communities and ecosystems where our priority ingredients and materials come from. While working with suppliers and farmers to address these issues, we implement a variety of tools and approaches including: 1 • Traceability : improving visibility within our ingredient and raw material supply chains back to origin to understand opportunities for impact. • Supplier engagement, monitoring and verification: communicating our expectations to suppliers and strengthening their sustainability management while using third-party certification and verification schemes to monitor performance and drive continuous improvement across sustainability impact areas. 1 Traceability is not a chain of custody concept and does not alone allow Hershey to identify the specific source from where the ingredient comes in a given Hershey product.

41 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Sugar In 2022, we will initiate an annual survey of our Dairy direct suppliers’ sustainability and responsible In 2021, we worked with our suppliers to trace sourcing practices and management systems. In 2021, we began implementing our implementation of manure storage facilities, our sugar to the mill level and understand if Our aim is to open a dialogue between Hershey responsible sourcing strategy for dairy. We soil health practices, riparian forest buffers it is linked to areas or mills with sustainability and our suppliers for sharing concerns and best ® concerns such as deforestation, water practices and identifying where training and joined the Dairy Sustainability Alliance , an and other efforts to enhance sustainability initiative organized by the Innovation Center on our supplying farms. pollution or the exploitation of workers. For investment is needed. This will be an important for U.S. Dairy, to accelerate progress toward Our work in 2021 included 16 acres of the year 2020, 60% of the sugar we purchased tool for better understanding our suppliers’ common sustainability goals and contribute riparian buffer planted — that’s 4,160 was traceable to the mill and we expect a business practices, areas for improvement and to the long-term viability of the U.S. dairy trees — and over a mile of stream similar percentage of our volumes to be issues to monitor. industry. In doing so, we endorsed the 11 key coverage and fencing constructed, among traceable for 2021. Hershey continues to partner with our sustainability criteria and strategic intents of other projects. This will prevent over To monitor and verify sustainability performance supplier, American Sugar Refining (ASR), to the global Dairy Sustainability Framework. 41,000 pounds of sediment, 2,250 pounds at the mill level and farm level of our sugar implement the “Learn to Grow” programs in We also joined the Sustainable Agriculture of phosphorous and 66 pounds of nitrogen supply chain, we continued to use credible Belize and Mexico that deploy a farmer field Initiative Platform’s Sustainable Dairy from entering waterways feeding the third-party standards and verification school model to help farmers learn about Partnership (SDP). We use this to verify Chesapeake Bay annually. It is also helping mechanisms, including the Bonsucro and Fair and implement more sustainable growing our dairy supply chain’s compliance with sequester 91 metric tons of CO e per year. Trade USA certifications for our sugar cane. In practices. These programs aim to holistically 2 2021, these actions included: our sustainability policies and engage address environmental and social issues facing with our suppliers on their journey toward • Continuing to source 100% Bonsucro-certified the farmers enrolled, including by supporting more sustainable dairy production. The mass balance sugar for our plants in Canada the development of a standard labor contract SDP includes sustainability requirements and Brazil. between the participating cane cutters and that must be met by dairy processors and 80% • Working with our suppliers to increase the cane farmer associations that provide cane to supplying farms as well as an assurance model of our volumes were sourced volume of Bonsucro-certified mass balance mills that supply to Hershey via ASR. In 2021, our with third-party verification and progress from suppliers enrolled in and sugar for our plants in the U.S. and to initiate program in Belize initiated a new phase to help reporting. We have committed to sourcing assessed through the SDP the purchase of some Bonsucro-certified mass farmers adapt to climate change through the 100% of our dairy volumes from suppliers balance volumes for our operations in India. use of technology that enables them to predict enrolled in and assessed through the SDP by changing weather and pest patterns. Training on 2024. At the end of 2021, 80% of our volumes • Purchasing Bonsucro credits to match 100% of best management practices was also provided were sourced from such suppliers. the volumes of conventional sugar purchased to help them respond more effectively to We also help suppliers accelerate their from non-U.S. origins where certified mass these challenges. sustainability efforts by investing with them balance sugar was not available, as well as 20% in field-level interventions focused on our of our total U.S.-produced sugar volumes. priority issues. In 2021, we collaborated with We sourced a total of 62% of our sugar volumes Land O’Lakes, our highest-volume dairy from farms certified or verified to a recognized supplier and a strategic partner, and the sustainability standard or covered by Bonsucro Alliance for the Chesapeake Bay to launch credits. We aim to procure 100% of our sugar a three-year pilot program, Sustainable from sources certified or verified to a recognized Dairy PA. This program aims to reduce GHG sustainability standard covering the farm level emissions and protect water quality across by 2025. For more information, visit our Sugar dairy farms in our Pennsylvania supply chain. Sourcing webpage. Hershey will provide funding to support the

42 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Palm Oil Hershey is involved in the Palm Oil Collaboration Group’s Independent Verification Pulp and Paper Hershey is committed to the highest standards Working Group to accelerate effective NDPE in responsible and sustainable palm oil sourcing, commitments with brands, traders, producers Pulp and paper packaging is integral to including our commitment to No Deforestation, and NGOs. Hershey’s business. We use it as food No Peat and No Exploitation (NDPE) stated in Following our Palm Oil Grievance Process, packaging, wrapping, transportation our Responsible Palm Oil Sourcing Policy. we continue to publicly disclose our Palm and marketing for our beloved brands. In 2021, we maintained our commitment to Oil Grievance Log with monthly updates to Beginning in 2015, Hershey committed source 100% Roundtable on Sustainable Palm increase transparency on NDPE violations to responsibly sourcing virgin fibers and Oil (RSPO)-certified mass balance palm oil and found within our supply chain. As of March 100% recyclable materials for our products. achieved 100% traceability to the mill level. We 2022, we have suspended 18 suppliers in our Since 2017, we have required that 100% remain committed to achieving 100% plantation upstream supply chain for NDPE violations, RSPO-certified of the pulp and paper sourced for our level traceability and expect to do this by none of whom supplied us directly. We have not mass balance palm since 2017 U.S. and Canada operations come from 1 2025. We recognize achieving this goal is yet granted re-entry to any of these suppliers. recycled material or certified mills. complex due to the realities of the palm supply In 2021, we suspended three indirect palm In 2021, we strengthened our chain, including challenges associated with oil operations from our supply chain due to commitments to NDPE and updated mapping smallholders. allegations of potential negative environmental our Responsible Pulp & Paper Sourcing We established a new commitment to achieve impacts. Policy. The updated policy expands a verified deforestation-free (VDF) palm supply We continue to invest in landscape our commitment to sourcing our pulp chain while respecting and protecting the transformation in Indonesia and Malaysia and paper packaging from recycled or human rights of individuals by 2025. Based on through Earthworm Foundation. These on- certified sources for our global supply mill lists from mid-year 2020 to mid-year 2021, the-ground programs focus on the protection chain, as well as to trace 100% of our we verified 51% of the volume as deforestation- and restoration of forests and biodiversity, virgin fiber materials back to the country free through Airbus and Earthworm smallholder inclusion, NDPE capacity building of harvest by 2025. We continue to Foundation’s Starling satellite. Through the and the resilience and livelihoods of local palm- publish our list of pulp and paper Starling satellite with Earthworm Foundation, growing communities. suppliers and mill groups, and in 2021, Hershey aims to improve our verified expanded this to include those that deforestation score and monitors the supply For more information on our palm supply to our global operations. chains of our highest volume suppliers, which supplier engagement, monitoring accounted for approximately 79% of our volume and verification work, and landscape in 2021. We work closely with all our palm transformation project investments, suppliers to investigate deforestation events. visit our Palm Oil Sourcing webpage. 1 Acceptable certification includes: Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC) and Sustainable Forestry Initiative (SFI).

43 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Progress Target Progress Goals Year (as of Dec. 31, 2021) RESPONSIBLE SOURCING AND HUMAN RIGHTS 100% of priority ingredients and materials to be responsibly 2025 On Track 1 and sustainably sourced (by volume) 78% 85% of in scope supplier sites meet Hershey’s Responsible 2025 On Track Sourcing Supplier Program requirements 25% 1 This result represents the percentage by volume of Hershey’s five priority ingredients, which met our definition of responsibly and sustainably sourced in 2021. This definition varies by ingredient and is subject to change as Hershey’s responsible sourcing programs evolve. More information may be found in the Responsible Sourcing Ingredient Commitments and Progress table on page 47. KPIs 2 RESPONSIBLE RECRUITMENT PROGRAM 2021 2020 Labor agencies enrolled in Responsible Recruitment Program 68 33 Labor agency enrollment by Hershey site location Brazil 9 0 India 14 9 Malaysia 9 7 Mexico 7 0 U.S. and Canada 29 17 Labor agency enrollment by category Contingent labor providers (manufacturing) 21 16 Contract packaging 10 9 Labor service providers 37 8 Progress on Responsible Recruitment Program requirements Responsible Recruitment and Employment Policy Acknowledgment (% completed) 100% 77% SAQ (% completed) 97% 74% SAQ Corrective Action Plan (% completed) 86% 34% SAQ noncompliances corrected and closed (%) 44% Not applicable 2 The Responsible Recruitment Program applies to all labor agencies that provide contingent labor or labor services to Hershey owned and operated offices and manufacturing sites. See page 35 for program details.

44 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report KPIs 1 RESPONSIBLE SOURCING SUPPLIER PROGRAM (SUPPLIER PROGRAM) 2021 2020 Suppliers and manufacturing sites enrolled in Supplier Program (total #) 551 330 # of manufacturing # of manufacturing Enrollment of manufacturing sites and audits performed by location sites enrolled and # of audits sites enrolled and # of audits subject to audit subject to audit Africa 6 8 6 0 Brazil 38 48 10 3 China 130 44 103 43 Europe 11 7 7 0 India 54 9 5 0 Malaysia 20 17 18 1 Mexico 26 35 10 2 North America (U.S. and Canada) 82 43 55 32 Rest of Asia 36 25 27 1 Rest of Latin America 3 2 2 0 # of manufacturing # of manufacturing Enrollment of manufacturing sites and audits performed by supplier category sites enrolled and # of audits sites enrolled and # of audits subject to audit subject to audit Contract manufacturing and contract packaging 33 24 17 3 Ingredients and raw materials 184 138 105 36 Licensing 80 39 76 14 Packaging 33 18 7 2 The Hershey Experience, World Travel Retail and Indirect 76 19 38 27 People demographics at manufacturing sites where audits were conducted2 2021 2020 Total workers at manufacturing sites 43,608 14,323 Female 12,532 8,943 Male 31,076 5,380 Domestic and international migrant 2,756 1,863 1 At Hershey, major nonconformances include issues rated as critical or zero-tolerance issues. 2 As documented in the audit reports.

45 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report KPIs SUPPLIER PROGRAM AUDIT RESULTS 2021 2020 Audits submitted in reporting year 238 82 Noncompliance results 719 297 Noncompliances corrected and closed 345 83 Minor nonconformances % of total findings 24.6% 19.5% Nonconformance rate 0.74 0.70 % of total findings corrected and closed 47.5% 41.4% Moderate nonconformances % of total findings 71.1% 72.7% Nonconformance rate 2.15 2.63 % of total findings corrected and closed 46.8% 23.1% Major nonconformances1 % of total findings 4.3% 7.7% Nonconformance rate 0.13 0.28 % of total findings corrected and closed 71.0% 39.1% 1 At Hershey, major nonconformances include issues rated as critical or zero-tolerance issues.

46 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report KPIs SUPPLIER PROGRAM 2021 TOP NONCOMPLIANCE ISSUE CATEGORIES HEALTH, SAFETY AND ENVIRONMENT WORKING HOURS HYGIENE Major noncompliance issue category (# and % of total noncompliances) 397 (55.2%) 75 (10.4%) 73 (10.2%) Average number of noncompliance issues per audit by location Africa 0.63 0.00 0.25 Brazil 1.81 0.40 0.13 China 1.86 0.11 0.82 Europe 1.71 0.29 0.00 India 1.33 0.33 0.00 Malaysia 2.71 0.47 0.47 Mexico 1.63 0.74 0.26 North America 0.84 0.07 0.07 Rest of Asia 2.40 0.36 0.36 Rest of Latin America 0.00 0.00 0.00

47 The Hershey Company | 2021 ESG Report Responsible Sourcing and Human Rights The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report KPIs RESPONSIBLE SOURCING INGREDIENT COMMITMENTS AND PROGRESS INGREDIENT COMMITMENT GOAL 2021 2020 Total food ingredients Percentage of food ingredients sourced (by cost) certified to third-party N/A 43% 41% environmental and/or social standards (e.g., Fair Trade USA, Rainforest Alliance, RSPO and Bonsucro)1 Cocoa Source independently verified cocoa (by volume) through: Fair Trade USA, 100% by 2020 100% 100% Rainforest Alliance (UTZ) and verified supplier program standards meeting 2 international criteria Sourcing visibility of Hershey’s cocoa volume in Côte d’Ivoire and Ghana 100% by 2025 68% 60% Dairy Source dairy volumes from suppliers enrolled in and assessed through the SDP 100% by 2024 80% 68% 3 100% by 2025 Data pending 60% Sugar Achieve traceability to the mill (by volume) Procure sugar (by volume) from sources certified or verified to a recognized 100% by 2025 62% 41% sustainability standard covering the farm level Palm Source RSPO-certified mass balance palm oil (by volume) and achieve 100% 100% by 2020 RSPO-certified: 100% RSPO-certified: 100% traceability to the mill Traceable to the mill: 100% Traceable to the mill: 99.8% Achieve traceability to plantation 100% by 2025 83.6% 72.7% Achieve a verified deforestation-free palm supply chain4,5 100% by 2025 51% Not applicable Pulp and Paper Source virgin fiber pulp and paper products (by volume) in the U.S. and Canada 100% by 2020 99.5% 100% from third party-certified mills (Forest Stewardship Council, Programme for the Endorsement of Forest Certification or Sustainable Forestry Initiative) Source pulp and paper packaging (by volume) from recycled or certified sources 100% by 2025 68.5% Not applicable globally5 6 100% by 2020 96% 100% Coconut Source certified coconut (by volume) through Fair Trade USA Eggs Source certified cage-free eggs (by volume) for the U.S. and Canadian markets 100% by 2020 93% 98% from cage-free farms that are in accordance with the American Humane Certified program 7 100% by 2025 No eggs or egg products were 0% Source certified cage-free eggs (by volume) globally sourced from international regions in 2021 1 The total food ingredients indicator methodology was reassessed in 2021 as prior calculations for several commodities included ingredient volumes covered by sustainability programs that are not third-party certified programs. The 2020 data as shown in this table has been restated from previous results for consistency with the updated methodology. 2 For additional cocoa KPIs, see page 31. 3 Data for 2021 will be published in 2023. 4 The 2021 verified deforestation-free palm supply chain results are based on mill lists from mid-year 2020 to mid-year 2021. Volumes were verified as deforestation-free through Airbus and Earthworm Foundation’s Starling satellite. 5 Data is not available for 2020 as 2021 is Hershey’s first year of tracking and reporting this result. 6 In 2021, Hershey sourced a small quantity of conventional, noncertified coconut due to a severe coconut shortage related to issues with raw material sourcing and transportation complications caused by the ongoing pandemic. 7 To match the scope of 2021 reporting, the 2020 globally sourced egg value has been restated and includes only international egg sourcing. It does not include eggs sourced from the U.S. or Canada, which is reflected in the KPI above.

48 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Caring ur or O f Our products, made with raw d ingredients and materials grown all over the world, put smiles on orl people’s faces every day. W Climate change, natural resource scarcity and extreme weather all pose risks to the snacks our consumers love as well as to the farmers and local communities we rely on. Given the significance of these risks and opportunities, we have put in place new targets on climate and packaging, and are developing new programming to support water and nature-related efforts. These bold steps will help ensure the long-term sustainability of our planet, people and business and are aligned with emission reduction requirements to keep warming below 1.5°C globally.

49 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Acting on Climate Change We have transformed our approach to environmental sustainability, shifting our focus from what we can do to what the world needs from us and how we can make the greatest impact. In March 2021, we announced new science- based GHG reduction goals to cut our How We Achieved absolute Scope 1 and Scope 2 emissions Progress on Our Science- by 50% and our absolute Scope 3 emissions Based Targets (SBTs) by 25% by 2030 against a 2018 baseline. Our emissions reduction targets have been Scope 1 (Direct) and Scope 2 (Indirect): approved by the Science Based Targets • Invested in three solar farm projects with initiative (SBTi) and are consistent with levels the first coming online in 2021 and the required to meet the most ambitious goals other two scheduled to generate power of the Paris Agreement. The targets covering in 2022 and 2024. emissions from our operations are aligned with reduction requirements to limit warming to • Purchased zero-emissions credits to 1.5°C globally. support our progress while the solar farms are constructed. • Identified opportunities and invested in reducing the energy intensity of 48% manufacturing. improvement against • Reduced coal usage (already phased out Scope 1 and 2 baseline in 2022) within our India plant, where we’ve transitioned to using rice husks (2020: 28%) as biofuel. Scope 3 (Value Chain Emissions) • Strengthened on-farm sustainability. 18% • Reduced land use change through 100% improvement against independently verified cocoa sourcing. Scope 3 baseline • Supported regenerative agricultural (2020: 13%) practices in collaboration with partners and suppliers.

50 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Reducing Value Chain Emissions Addressing land use is a significant part of our In both sugar and dairy, we are incorporating America with exposure to high-emitting More than 96% of our total GHG emissions climate action plans and we have committed our climate efforts into new responsible agricultural commodities. are from Scope 3 in our extended value chain. to eliminating commodity-driven deforestation sourcing programs. For example, our dairy Hershey was one of only three companies on Cocoa, dairy, sugar, packaging and logistics from all our ingredient supply chains by 2030. operations are conducting a pilot with our The Food Emissions 50 Company Benchmark represent the areas where we see the greatest As part of this initiative, we are partnering with supplier Land O’Lakes and the Alliance list that has developed both emissions opportunities for emissions reductions. In our suppliers to drive improvements throughout for the Chesapeake Bay to make on-farm disclosure and emissions reduction targets. each of these priority areas, we are identifying the entire supply chain. Our commitment to improvements to reduce emissions and improve We were also listed as one of fewer than 20 opportunities, engaging in multi-stakeholder sourcing only 100% independently verified waterways in the Pennsylvania area. Many companies that report on land-use change as planning, implementing meaningful actions cocoa and to 100% sourcing visibility in Côte of the sustainable agriculture projects have part of disclosing Scope 3 emissions. toward our targets and advancing sustainability d’Ivoire and Ghana by 2025 supports our co-benefits beyond carbon and water, such as within our value chain. efforts in building long-term relationships with encouraging the adoption of farming practices For data related to our Scope 1, 2 known farmer groups, providing resources and that promote biodiversity and soil health. and 3 GHG emissions, see page 57. A large portion of our baseline Scope 3 education on sustainable farming and driving In 2021, we were assessed by Ceres as part emissions are due to land-use change from traceability to halt deforestation. of the 50 largest food companies in North the farm-level production of our ingredients. Scope 1: Scope 2: 2.64% 1.11% Direct emissions from owned or controlled Indirect emissions from purchased sources such as natural gas power, steam, heating and cooling OUR 2021 EMISSIONS Scope 3: BREAKDOWN BY SCOPE 96.25% (METRIC TONS CO e) All other indirect emissions occurring in our value chain: 2 66.98% Agriculture (includes 0.84% Business travel/employee land-use change) commuting 12.48% Logistics 3.99% Co-manufacturers 6.76% Packaging and 0.51% Fuel packaging waste 0.20% Food waste 3+1+96+D 4.36% Specialty 0.14% Waste from operations

51 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Renewable Energy energy champion who is responsible for Investing in renewable energy is a key lever in implementing carbon savings projects, meeting Expanding Impact reaching our Scope 1 and 2 commitments. In conservation goals, identifying opportunities for We’re not just looking for more ways to April 2021, Hershey announced the signing of energy reduction and efficiency, and engaging increase Hershey’s energy efficiency — two Power Purchase Agreements (PPAs) that employees in these efforts. our employees are replicating our efforts in will enable the construction of two new utility- The Hershey manufacturing facility in São their own homes. scale solar farms. Hershey signed another PPA Roque, Brazil, achieved the ENERGY STAR at the end of 2021 to enable the construction of Challenge for Industry goal in just one year. In 2021, our Malaysia Green team held a a third utility-scale solar farm. These projects will The facility reduced their energy consumption three-month competition to reduce their offset GHG emissions and enhance Hershey’s by completing projects and executing strategies household electricity bills. The competition ability to rely on clean and renewable energy to improve their on-site energy efficiency. sparked action by recognizing and while also creating local jobs and generating rewarding the best in energy conservation. significant power for the communities where In addition, we joined the U.S. Department Monthly electricity-saving tips were they are situated. of Energy’s Better Buildings, Better Plants shared with employees to encourage The first solar farm came online in November Program in 2021 to reduce energy intensity them to do their part in responsible 2021 and is already delivering substantial throughout our U.S. manufacturing operations electricity consumption for a more progress toward our Scope 1 and 2 emissions by 20% within 10 years. Through this program, sustainable future. All participants in the target. Hershey received more than 14,600 we are accessing and leveraging additional competition achieved at least a 10% energy Renewable Energy Credits (RECs) from solar energy management tools to further uncover reduction and the champion achieved a projects in 2021. The second solar farm is energy saving opportunities. 32% energy reduction. scheduled to come online in 2022 and the third in 2024. We have also worked with our utility providers to significantly increase the proportion of our energy coming from zero emission sources, including nuclear power. In 2021, 77% of our electricity consumption was 1 renewable and zero emission energy. Energy Efficiency Increasing the energy efficiency of our facilities is an important part of our work to tackle emissions and supports our mission as an ENERGY STAR partner. In 2021, we launched a companywide energy program and joined the ENERGY STAR Challenge for Industry, which tasks companies with reducing energy intensity by 10% within five years. To drive this commitment, each Hershey manufacturing location around the world has a designated 1 This calculation includes purchased RECs and Zero-Emissions Credits (ZECs) as well as solar and hydro power directly sourced by facilities.

52 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Employees Acting for Change Accelerating Sustainability at Planting Trees Today Hershey With Our Green Teams to Benefit Tomorrow Our Green Teams represent a group of Green Teams supported the Arbor Day passionate employees from all parts of the Foundation’s Community Canopy program organization and locations around the world to create the largest tree-giveaway program that come together out of a shared interest ever for Hershey employees across the U.S. in advancing sustainability at Hershey and in The program provided employees with the communities where we operate. Hershey more than 2,000 free trees delivered to launched its first Green Team on Earth Day their homes. Trees were reserved through 2020. At the end of 2021, there are now 11 the Arbor Day Foundation’s Community Green Team chapters. Hershey’s sustainability Canopy online mapping tool, which helps goals require action from employees across identify the ideal planting location to the enterprise and Green Teams are helping maximize the air, water, energy and carbon drive progress and make a difference for a more benefits of each tree. The benefits of sustainable future. Hershey’s Community Canopy program In summer 2021, the Green Teams planted include nearly 8,500 pounds of air native wildflowers and grasses for pollinators pollutants absorbed, more than $430,000 in the shape of a HERSHEY’S KISSES candy in combined energy and community at our headquarters. The garden has more benefits, one million kilowatt-hours saved 1 than 75 native plants specifically selected for and 10 million gallons of stormwater filtered. the benefits they provide to pollinators. The Since 2017, we have planted over 903,000 garden also provides a place for employees trees in partnership with the Arbor to come together away from technology to Day Foundation. engage with a tangible sustainability practice In addition, through collaboration with the that makes a difference and inspires them Arbor Day Foundation, the Alliance for the to add native plants to their own yard. The Chesapeake Bay and the Chesapeake Bay garden was certified as a pollinator habitat Foundation, we are planting thousands of by the Penn State Extension Office Master trees for reforestation projects on public Gardener Program. lands and some of the dairy farms that provide fresh milk for Hershey’s products. These actions contribute to improving water quality, creating more natural spaces and supporting environmental education for the next generation. 1 20-year cumulative values projected using iTree tools.

53 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Making Progress on Packaging Sustainable packaging As of December 31, 2021, qualified alternatives Exploring sustainable packaging requires a is important to have been identified for more than 50% of holistic approach that balances safety, quality, PVC, with conversions underway. The balance consumer needs, and manufacturing and consumers — and to of Hershey’s PVC is on track to have qualified distribution requirements. Our priority is to how we can reduce our alternatives identified by the end of 2022. make sure Hershey packaging continues to We are driving our recyclable plan by finding deliver high-quality and safe, consumable environmental footprint. materials that reduce our reliance on mixed- products to market. plastic materials that are not recyclable and are actively qualifying single-material alternatives For a summary of our goals and KPIs Packaging waste is a global issue and we aim to that are more easily recyclable. Within this related to packaging, see page 60. use our expertise and resources to help provide space, we expect to begin conversion on some solutions that both deliver on food safety and items in the U.S. as early as 2022. reduce waste in the environment. Increasing our proportion of sustainable In addition to recyclable plastics, we are packaging and ensuring responsible production exploring paper and compostable alternatives and disposal play an important part in reducing across several regions, including the U.S., our Scope 3 GHG emissions. Mexico, Brazil and Asia. Beyond these efforts, we continue to drive circularity by increasing We use a range of tools and data to make and our use of recycled materials across our track our progress, including sustainability portfolio. One example is the transition to calculators and quality and life cycle analysis. 100% recycled material for corrugate cases by our Reese’s and Monterrey facilities. This effort alone has saved almost 625,000 hours Progress Against Our of energy, over 14,000 trees and almost two million gallons of water. It also reduced Packaging Commitments GHG emissions by over 12 million pounds. In 2021, we announced three ambitious Lastly, we continue our long-standing new packaging goals: commitment to reducing packaging waste to • Eliminate hard-to-recycle PVC landfill by eliminating unnecessary packaging. by the end of 2022. In 2021 alone, we eliminated 9.5 million pounds of material through packaging elimination, • Ensure 100% of our plastic packaging redesign and downgauging. Our focus extends is recyclable, reusable or compostable beyond just the consumer package to include by 2030. secondary, transport and display packaging • Reduce our packaging weight by an where we are investing in design solutions additional 25 million pounds by 2030. that drive distribution efficiencies to eliminate extra trucks on the road to minimize associated GHG emissions.

54 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Protecting Water Supplies Blue water footprint: Water is critical to our water sourced business and connected to from groundwater Green our climate action strategy. or surface water water resources footprint: In 2020, we joined the Science Based Targets water used Network’s (SBTN) Corporate Engagement from rainwater Program to stay aligned with emerging best practices in water stewardship and the planned release of guidance for SBTs for nature. We are currently participating in SBTN’s self- guided pilot to better understand a path for OUR 2021 BLUE WATER FOOTPRINT Hershey to minimize its water impacts, identify (CUBIC METERS) opportunities to support collective solutions in priority areas and more deeply examine the While the framework for developing intersections between climate, water, land, science-based targets for nature as defined biodiversity and community. in SBTN will focus on blue water (which is In addition to driving water efficiency in controllable), we also plan to identify ways manufacturing, we are exploring agricultural to improve Hershey’s green water use, solutions that protect and enhance which is the majority of our water footprint. water resources. OUR BLUE WATER Sugar: 95,173,912 Applying Best Practices WITHDRAWAL FOOTPRINT Peanuts: 51,069,828 in Malaysia Dairy: 39,561,526 In our Malaysia facility, Hershey team 247 million m3 Almonds: 36,042,993 members have been actively implementing Corn: 15,837,873 more measures to reduce water use. Key Hershey’s U.S. Operations: 5,829,259 water savings have come from finding Wheat: 3,383,202 different ways to reuse the facility’s water. Recycled water is now used in various Soy: 337,870 equipment cleaning processes. So far, these Cocoa: 254,310 water conservation efforts help recycle Pecans: 117,831 10–15% of the facility’s treated water annually. The team is now conducting a study to explore using treated water from a cooling tower for irrigation. +2+3+6+14+16+20+38+D 1

55 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Journey to Understand Our Water Impact In 2021, we launched a Using leading global water screening tools — preliminary assessment including Aqueduct from the World Resources Operational Water Footprint By Factory2 Institute — we began to identify priority areas to following the SBTN create more sustainable water systems and help methodology. This enabled future-proof growth against climate change. us to better understand While the SBTN pilot methodology only requires the use of two indicators in the High Water High Water Stress our water footprint and Aqueduct tool, we chose to review all 13 Intensity and Intensity begin to gather insights on indicators of physical water quantity and quality High • Granby (Canada) • Mandideep (India) risks and safe drinking water supplies. contextual water challenges We also took preliminary steps to research • Robinson (Ill.) across our operations and some of the social impacts of water issues, • Malaysia the value chain. including exploring how our water footprint • Memphis (Tenn.) could be linked to impacts associated with access to clean water and sanitation and where Our initial water risk and opportunities vulnerabilities might exist. assessment included core commodities that For a summary of our goals and account for the majority of ingredients, relevant KPIs on managing our water, materials and manufacturing plants. We see page 61. identified two material issues: reliance on water for agricultural products in the value chain g of product produced) (high risk) and water used for manufacturing (medium risk). Taking Action on Water Low Water Stress High Water Following the assessment, we used the water Scarcity in Brazil and Intensity Stress footprint concept from the Water Footprint São Roque in Brazil is facing its biggest • Reese (Pa.) • São Roque (Brazil) Network to compile information on water water crisis in over 90 years. In response, ensity (L/K• St. Hyacinthe (Canada) • Guadalajara (Mexico) use. This analysis revealed that nearly 100% our Brazil team explored opportunities of Hershey’s global water footprint takes to conserve water by identifying areas of er Int • Lancaster (Pa.) • Monterrey (Mexico) place upstream in agriculture and packaging. improvement at the manufacturing facility. at • West Hershey (Pa.) Furthermore, from the more than 30 countries This resulted in swift action to reduce water W where Hershey sources ingredients, 13 account consumption at the facility and increase • Stuarts Draft (Va.) for 96% of the company’s water footprint. employee awareness through training Based on our water stress areas sourcing and by hosting a World Water Day event. • Hazleton (Pa.) assessment, approximately 12% of our food These actions further elevated the ingredients in 2021 were sourced from importance of water conservation at home Low regions with High or Extremely High Baseline and at work. As a result of these efforts, the 1 São Roque facility had a 23% reduction in Water Stress. water intensity in 2021 compared to the Low Water Stress Score High prior year. 1 The methodology for this calculation is based on mass of ingredients sourced and the Aqueduct Water Risk Atlas and WWF Water Risk Filter. This assessment was first completed for Hershey’s food ingredients in 2021. 2 The methodology for our Operational Water Footprint By Factory analysis is based on the Aqueduct Water Risk Atlas and Hershey’s internal benchmarking on 2021 water intensity. Factories in the High Water Intensity quadrant are above Hershey’s average water intensity and are located in Very low to Low-medium baseline water stress areas. Factories in the High Water Stress and Intensity quadrant are above Hershey’s average water intensity and are located in Medium- high to Extremely high baseline water stress areas. Factories in the High Water Stress quadrant are below Hershey’s average water intensity and are located in Medium-high to Extremely high baseline water stress areas. Factories in the Low Water Stress and Intensity quadrant are below Hershey’s average water intensity and are located in Very low to Low-medium baseline water stress areas.

56 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Innovating Waste Solutions Nearly a century ago, our founder Milton Hershey Raising Employee Awareness What’s Next established our first recycling center to reuse About Waste We are actively developing the future of manufacturing waste. Since then, we’ve maintained that our corporate waste-reduction strategy. We spirit of responsibility and that drive to find innovative Hershey employees are raising awareness know that reducing the impact of plastics and about the importance of reducing, reusing packaging and promoting circular economy solutions as we continually explore new ways to reduce, and recycling and are collaborating to approaches will continue to be one of Hershey’s reuse and recycle our waste. In 2021, we achieved a explore ways to address what to do about ESG priorities. new waste streams, such as the increased We are gaining additional insights and company-wide waste recycling rate of 85%. use of disposable masks. analytics about waste streams through more Hershey’s Tech Center campus and detailed monitoring and collaboration with headquarters have implemented a pilot Hershey Green Teams — all in an effort to drive Contributing to a Circular Economy PPE recycling program for hard-to-recycle continuous improvement. While applying circular economy principles, we Turning Waste Into items like disposable masks, hairnets, Resources in Brazil gloves and ear plugs using Zero Waste For a summary of our goals and KPIs aim to maximize the beneficial use of material Boxes from Terracycle. on eliminating waste, see page 61. that would otherwise be destined for landfill. Our plant in São Roque, Brazil, installed For example, the majority of unusable product an automatic composter to convert from our manufacturing facilities in Pennsylvania organic waste from the cafeteria into and beyond are sent to local processing fertilizer that it donates to two socio- facilities as an organic input that is recovered environmental projects in the local zero and transformed into a raw material used in the community, one focused on environmental waste achieved in two of agricultural sector. education and another on community our manufacturing facilities gardens. Both projects help support in 2021, and two additional food security for families and children in manufacturing facilities are Turning Waste Into need. Extra fertilizer is also available for at nearly 100% recycling Energy in Mexico employees to use. Hershey’s plant in Monterrey, Mexico, is Our Brazil team also partnered with a decreasing the amount of waste sent to supplier that turns waste into products, landfill by diverting some of Hershey’s such as plastic pallets and boxes, that nonrecyclable waste stream to a nearby can be used in plants. In addition, our cement manufacturing facility. This waste plant in Monterrey, Mexico, has been material, which contains recoverable sending sludge and peanut skins from its energy, is beneficially used as an alternative manufacturing processes to a composting fuel that substitutes the use of fossil fuels processor, achieving a 95% recycling rate for the cement manufacturing facility. This against waste generated. practice reduces CO emissions for the 2 cement manufacturer and contributes to a circular economy.

57 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Progress Target Progress Goals Year (as of Dec. 31, 2021) ENVIRONMENT 50% absolute reduction in Scope 1 and 2 2030 On Track 1 GHG emissions against a 2018 baseline 48% 25% absolute reduction in Scope 3 GHG emissions against 2030 On Track a 2018 baseline 18% 100% of plastic packaging to be recyclable, reusable 2030 On Track or compostable In 2021, we began initial recyclability research and machine ability trials. In 2022, we are focused on converting flexible packaging to recyclable structures. 2 25 million pounds of packaging to be eliminated 2030 On Track 9.5M 1 Hershey’s GHG emissions reduction goal is based on Scope 1 and Scope 2 (market-based). 2 The initial goal was achieved five years ahead of schedule in 2020. We have since expanded our commitment to eliminate an additional 25 million pounds of packaging by 2030. KPIs 3,4,5 GHG EMISSIONS (METRIC TONS OF CO e) 2021 2020 2019 2 6 5,554,762 5,995,431 6,571,654 Total GHG footprint Direct (Scope 1) emissions 146,653 157,092 160,808 Change in Scope 1 emissions (against a 2018 baseline) -6.7% -0.04% 2.3% Indirect (Scope 2): market-based emissions 61,415 129,100 227,991 Change in Scope 2: market-based emissions (against a 2018 baseline) -74.5% -46.6% -5.3% Indirect (Scope 2): location-based emissions 201,203 197,612 212,538 Biogas Carbon Dioxide Emissions 3,631 4,398 3,307 Value chain (Scope 3) emissions 5,346,693 5,709,238 6,182,856 Change in Scope 3 emissions (against a 2018 baseline) -18.4% -12.9% -5.7% 3 Hershey’s 2019 and 2020 GHG emissions data has been restated to include at least 95% of our total baseline (as per SBTi standards). All calculations include relevant GHG as specified by the Greenhouse Gas Reporting Protocol. The data in this table excludes ONE Brands, ® Lily’s, Dot’s and Pretzels. Emission factor sources include: Scope 1: ecoinvent and DEFRA. Scope 2: EPA Emissions & Generation Resource Integrated Database (eGRID), Quantis Scope 3 evaluator, Green-e Energy Residual Mix Emissions Rate and the emission rates of our electricity providers. Scope 3: ecoinvent, Quantis Dryad tool and the emission rates of our suppliers. Operational control. GHG Protocol standard used. 4 Totals may not equal 100%, due to rounding. 5 Environmental data within this table has been assured by Quantis, an independent verifier. 6 Hershey’s total GHG footprint is calculated based on Scope 1, Scope 2 (market-based) and Scope 3 emissions.

58 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report KPIs 1,2,3 GHG EMISSIONS (METRIC TONS OF CO e) 2021 2020 2019 2 Category 1 – Purchased Goods and Services 4,483,142 4,828,019 5,277,895 Category 2 – Capital Goods Not applicable Not applicable Not applicable Category 3 – Fuel and Energy-Related Activities 28,418 29,289 30,983 Category 4 – Upstream Transportation and Distribution 408,839 418,876 404,933 Category 5 – Waste Generated in Operations 7,558 7,111 7,177 Category 6 – Business Travel 6,006 6,768 56,175 Category 7 – Employee Commuting 33,013 33,189 44,125 Category 8 – Upstream Leased Assets 7,696 7,516 7,610 Category 9 – Downstream Transportation and Distribution 284,179 293,947 273,127 Category 10 – Processing of Sold Products Not applicable Not applicable Not applicable Category 11 – Use of Sold Products Not applicable Not applicable Not applicable Category 12 – End-of-Life Treatment of Sold Products 87,842 84,524 80,832 Category 13 – Downstream Leased Assets Not applicable Not applicable Not applicable Category 14 – Franchises Not applicable Not applicable Not applicable Category 15 – Investments Not applicable Not applicable Not applicable 1 Hershey’s 2019 and 2020 GHG emissions data has been restated to include at least 95% of our total baseline (as per SBTi standards). All calculations include relevant GHG as specified by the Greenhouse Gas Reporting Protocol. The data in this table excludes ONE Brands, Lily’s, Dot’s and Pretzels. Emission factor sources include: Scope 1: ecoinvent and DEFRA. Scope 2: EPA Emissions and Generation Resource Integrated Database (eGRID), Quantis Scope 3 evaluator, Green-e Energy Residual Mix Emissions Rate and the emission rates of our electricity providers. Scope 3: ecoinvent, Quantis Dryad tool and the emission rates of our suppliers. Operational control. GHG Protocol standard used. 2 Totals may not equal 100%, due to rounding. 3 Environmental data within this table has been assured by Quantis, an independent verifier. 4 EMISSIONS INTENSITY (METRIC TONS OF CO e PER METRIC TON OF PRODUCT PRODUCED) 2021 2020 2019 2 0.154 0.168 0.172 Direct (Scope 1) Indirect (Scope 2): market-based 0.065 0.138 0.243 Scope 1 and Scope 2: market-based 0.219 0.306 0.415 Value chain (Scope 3) 4.875 5.329 5.797 4 Data in this table has been restated. The current scope excludes ONE Brands, Lily’s, Dot’s and Pretzels.

59 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report KPIs 1,2 ENERGY CONSUMPTION (GIGAJOULES – GJ) 2021 2020 2019 Biogas 72,015 87,218 65,588 Coal 72,533 77,665 88,371 Distillate fuel oil no. 2 7,283 6,584 10,752 Electricity consumed 2,019,779 1,973,875 2,010,716 Fuel oil no. 6 151 555 1,865 Jet fuel 32,045 30,812 45,440 Motor gasoline 2,940 3,009 3,158 Natural gas 2,465,002 2,513,685 2,663,264 Propane 596 785 861 3 4,672,395 4,694,197 4,890,014 Total energy consumption Total electricity consumed that is grid electricity (percentage) 22.15% 56.25% 95.57% Electricity consumption that is renewable (percentage) 21.45% 6.52% 4.43% 4 Electricity consumption that qualifies as zero-emissions energy (percentage) 56.40% 37.23% Not applicable 5 Energy intensity ratio (GJ per metric ton of product produced) 4.38 4.48 4.67 1 Data in this table has been restated. The current scope includes all Hershey facilities (e.g., offices, factories and distribution centers/warehouses) with the exception of ONE Brands, Lily’s, Dot’s and Pretzels. 2 Environmental data within this table has been assured by Quantis, an independent verifier. 3 Total may not add up when using category values listed above due to rounding. 4 Hershey did not begin purchasing RECs and ZECs until 2020. 5 Represents energy usage at Hershey manufacturing plants related to fuel, electricity and heating.

60 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report KPIs AIR QUALITY (METRIC TONS – MT) 2021 2020 2019 NO emissions 67.4 74.9 77.8 x SO emissions 2.15 2.5 2.4 x VOC emissions 101.9 83.8 190.3 CO emissions 64.0 64.2 77.8 Particulate emissions 52.9 49.2 49.1 ACCELERATING SUSTAINABILITY WITH HERSHEY GREEN TEAMS 2021 2020 2019 1 11 3 Not applicable Hershey Green Team chapters (globally) Hershey Green Team members1 >330 >160 Not applicable Trees planted and tree seedlings distributed2 218,124 220,100 112,582 1 The first Hershey Green Teams were founded in 2020. 2 The trees planted and tree seedlings data includes the activities of Hershey Green Teams and reforestation partnerships like The Arbor Day Foundation and Sustainable Dairy PA. It does not include tree planting related to cocoa. The cocoa tree data may be found on page 32. PACKAGING 2021 2020 2019 3 Qualified alternatives identified Eliminating hard-to-recycle PVC (by end of 2022) for more than 50% of PVC N/A N/A 4 Total packaging sourced globally (metric tons) 168,898 156,617 129,946 5,6,7 Packaging waste eliminated (millions of pounds) 9.5 2.26 Data not available Product packaging by weight that is currently recyclable (percentage) 77% 77% 80% Packaging made from recycled and/or renewable materials (percentage) 72% 70.2% 65% Packaging in North America that is post-consumer recycled material 31% 22% 22% 3 Hershey’s commitment to eliminate PVC by end of 2022 was announced in 2021. 4 The 2019 result represents packaging sourced from North America only. 5 Hershey’s initial packaging elimination goal was achieved five years ahead of schedule in 2020. We have since expanded our commitment to eliminate an additional 25 million pounds of packaging by 2030. 6 The 2020 value does not include packaging reductions from Amplify, which also reduced its packaging weight by an additional 1.65 million pounds in 2020. 7 In the 2019 Sustainability Report, Hershey disclosed that we saved more than 23.6 million pounds of packaging cumulatively since 2015.

61 The Hershey Company | 2021 ESG Report Environment The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report KPIs WATER1,2 (MILLIONS OF LITERS) 2021 2020 2019 Total water use 5,829 5,546 5,797 Groundwater 54% 52% 52% Purchased water 46% 48% 48% Total water discharge 4,915 4,623 4,405 3 914 923 1,392 Total water consumption Water intensity (liters per kilogram of product produced) 3.19 3.11 3.23 1 Water data for all years has been restated. The current scope excludes ONE Brands, Lily’s, Dot’s and Pretzels. 2 Environmental data within this table has been assured by Quantis, an independent verifier. 3 Water consumption is calculated as water use less water discharge. 4,5 WASTE (METRIC TONS – MT) 2021 2020 2019 Non-hazardous waste generated 61,013 56,602 51,815 Total waste reused and recycled and method used 51,532 47,751 42,698 Recycled 20,565 20,810 17,236 Stock feed 30,744 26,927 25,182 Composted 223 14 280 Waste to energy (incineration) 6,781 5,818 6,081 Waste to trash (landfill) 2,700 3,033 3,037 Hazardous waste 152 178 88 Waste intensity (waste generated per metric ton of product produced) 0.06 0.06 0.06 4 Waste data for all years has been restated. The current scope excludes ONE Brands, Lily’s, Dot’s and Pretzels. 5 Environmental data within this table has been assured by Quantis, an independent verifier.

62 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People Putting People At Hershey, we foster a culture of togetherness and collaboration where irst our people feel heard, valued and supported to do their best work each F day. We strive to nurture workplaces where inclusiveness is a reflex, not an initiative, and all employees can thrive. We do this because our people are our greatest asset. We believe that we unleash their potential when we invest in them and enable them to be the best versions of themselves. Together, we have built a deep sense of pride, passion and belonging that transcends any role, business unit, language or country.

63 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People Stronger Together Different ideas, perspectives and Much like the previous year, 2021 was a Our most recent 2021 employee satisfaction year of unexpected challenges. While we survey showed that employees remain highly could not control all the stressors impacting engaged and fulfilled, although, consistent with backgrounds create a stronger and our employees, we took decisive steps to marketplace trends, these metrics declined safeguard our people’s physical, emotional slightly from 2020 due to effects of a prolonged more successful work environment. and financial well-being. pandemic. Despite the slight decrease, we Hershey is deeply focused on enhancing achieved greater than 75% favorability on Hershey’s dedicated, engaged, diversity, equity and inclusion, investing both key metrics in 2021. We are increasing in well-being, helping people grow and transparency of workforce and well-being data inclusive and collaborative employees delivering excellence. We are committed to and insights to transform the way we lead. the programmatic development of our people, We are committed to providing unique make more moments of goodness including future-facing commercial skills, Hershey opportunities that infuse energy and leadership and career development. excitement into the employee experience. together. When all employees feel We continue to support employees’ careers and connections through engagement with valued and heard, everyone is managers, mentors and sponsors, as well as through the adaptation and expansion of our positioned to do their best work benefits. Flexibility and care systems are key to employee well-being and mental health. We are every day. designing and reinvigorating policies to improve our flexible approach.

64 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People Keeping People Safe Strengthening Despite the ongoing challenges presented Meeting New EHS Goals Our Holistic Approach by the pandemic, we were able to develop a We are already on track to meet our newly new Environmental, Health and Safety (EHS) launched goal of 50% hazard reduction for job We recognize safety as one of our salient Management System modeled on the leading functions with ergonomic risks. To get there, human rights issues and put the safety of ISO 14001 and 45001 standards. We believe we have been implementing a culture-based people — from our employees to contractors that standardizing practices not only makes it ergonomics program across all global sites. and guests at Hershey facilities — first. This goal easier to ensure legal compliance regardless of ties in closely to protecting and promoting the location but also unites our people under one In 2021, all manufacturing sites globally: well-being of the people who work for and way of thinking about EHS. with us. Our approach is based on global best practices • Formed an employee-based Ergonomics Throughout the year, much of our focus and seeks to meet or exceed regulations committee. continued to be on how best to keep our people wherever we operate. The new standardization • Completed the first-ever global training safe during an ongoing pandemic. We retained practices will include developing updated on ergonomics. the crucial decision-making committee we global safety standards for both people and • Completed three easy ergonomic fixes that set up with key executive leaders and we also the environment and providing regular training are being compiled for sharing. continued to update the COVID-19 website to for relevant employees on applicable topics. In 2022, all sites will complete a risk assessment, share up-to-date information with employees The new Management System will be fully planning and mitigation steps. We will also on topics such as travel and health and safety implemented by 2022. establish a strong quantitative baseline for the requirements. Employees that were able to Its implementation will be supported by a reduction of ergonomic risk in the company. work from home continued to do so. robust internal audit system that will validate We also kept our facilities safe for employees the application of the standard as well as sites’ For a summary of our goals and KPIs who need to be on-site, from providing PPE to compliance with local regulations. The Audit on safety, see page 79. enabling physical distancing in workspaces. teams will consist of EHS Center of Excellence Our efforts have helped us maintain a low members and EHS managers from other sites. infection rate, despite new variants and Our EHS Lean Pillar team will be overseeing the subsequent surges in infections. The majority implementation of the new safety standards of cases we recorded have been traced back to and procedures. contacts occurring outside of work. We believe While standardizing safety processes, we this is a testament to the efficacy of the systems also developed a training matrix that lists our teams put in place and the deep care and all safety topics, the frequency of training concern Hershey employees showed for required, the relevant personnel to be trained their peers. or to manage training and what resources the training requires, such as online classes or in-person demonstrations.

65 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People Providing a Caring Employee Experience We recognize that employee well-being is a cornerstone Supporting Balance SmartFlex Benefits of an engaged, innovative and productive workforce. and Well-Being When our employees feel seen, respected and cared for, During the year, mental health stayed in the SmartFlex is our suite of policies that spotlight, with employees becoming more open enables individuals to create their own they give their best. about the struggles they were facing during balance between work and personal life. constant uncertainty. Our approach was to It is designed to improve productivity, Hershey is proud to offer a competitive Community Benefits regularly engage with our people managers boost job satisfaction and increase suite of benefits, a full list of which may be and expand our benefits system to ensure employee engagement. found on our Careers page. These include: • Hershey Company Scholars Program: employees felt heard and supported. • Parental Leave: A total of six weeks scholarships to children of Hershey employees of consecutive paid time off or a total Family Benefits pursuing post-secondary education. In 2021, many employees continued to work of 15 days of flexible paid time off for • Paid parental leave including • Unique volunteering opportunities, including from home and some were hired as fully all full-time salaried U.S. employees in adoption benefits. at Milton Hershey School. remote — emphasizing Hershey’s flexibility addition to other similar benefits available • Dollars for Doers program: Hershey donates and ability to attract diverse talent. This only to employees. • Fertility coverage. $500 to an employee’s nonprofit of choice underscored the importance of our continued • Flexible working solutions. after they log 50 hours of volunteer service in transition to a more flexible working model for • Flex Tech: Utilizing new technologies a calendar year. all our employees, regardless of their role. We and personally owned devices to provide Well-Being Benefits have scaled up our work to improve scheduling employees with secure access to • Private rooms designed for breastfeeding, • Employee relief fund that provides grants for manufacturing teams and retail employees company systems from work or home. quiet reflection, prayer or wellness rest breaks. to individual employees facing disaster while migrating to a more virtual workplace for • Flex Time: Salaried employees choose or hardships. corporate employees. how best to manage their work time • State of the art fitness center at our Hershey, • Matching gifts program (see page 87). We also adapted our benefits to find more ways based on work priorities and personal Pennsylvania campus. to recognize the added workload of caring for commitments. • Employee Assistance Program through families during working hours. • Family FLEX: Employees can designate Beacon Health: In 2021, the program time in their workdays to care for children, expanded to include up to 10 free virtual visits For example, our Bundle Program is an family members, other loved ones and with a counselor per problem per year (for “Educare” virtual platform designed to give even themselves. This enhances flexibility Hershey employees and each person living employees a break from childcare and elderly in a virtual work setting and better equips in their household). care responsibilities by enabling children ages employees to balance business needs 3–11 and elderly family members to engage with with personal obligations. vetted and trained instructors in one-on-one or small group sessions virtually. Children can take educational adventures in science, engineering, arts and culture, health and wellness or diversity and inclusion, and receive tutoring or collaboratively work on homework. Older family members can connect with others and engage in intellectually stimulating experiences in arts and culture, travel and games. This program was expanded in 2021 to include “Power Up” programs providing coaching and professional development during one-on-one sessions and in small groups.

66 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People Engaging With Unions The Black Heritage BRG hosted the July The employees at our manufacturing facilities Minority Mental Health Month event, focusing who craft our world-class products enjoy on removing the stigma of mental health. competitive wages, benefits and highly skilled “Your Blues Ain’t Like Mine; Acknowledging jobs and report strong engagement with their and Healing Our Past, Looking Forward To The work. At some facilities, our manufacturing Future,“ presented by Malkia Newman, Team employees are represented by labor Supervisor at CNS Healthcare, was a featured organizations and operate under collective session. Hershey also provided Exercise bargaining agreements. Our labor relations are Your Wellness with personal trainer Bodine conducted in the spirit of collaboration for the Wolchuk sharing how to move your body benefit of employees and the company. In 2021, through dynamic exercises to increase strength, approximately 33% of our employees worldwide stretching techniques to enhance flexibility and were covered by collective bargaining breathing techniques to decrease heart rate agreements. and blood pressure, helping to manage stress and increase focus. A Place to Learn and Grow For leaders, we provided two webinars on Recognizing The Distressed Employee, which Hershey gives all employees the chance to shared how to recognize the role of stress, learn, grow and own their work. Since 2017, we the warning signs, strategies for assisting have partnered with leading online content employees and resources to support leaders experts and increased internal learning and employees. development to expand our catalog of online and classroom courses from 3,000 to more than 20,000. This unique combination of world-class resources, genuine responsibility and authentic experience makes Hershey a place where employees can become leaders in their fields. The majority of our eight executive officers were promoted from within the organization. In 2021, Hershey showed care and concern for 20,000+ employees’ and leaders’ well-being by hosting online and classroom a monthly virtual well-being webinar series. courses available to Hershey The series focused on emotional, mental and physical health habits and offered supporting employees resources. We leveraged our Business Resource Groups (BRGs) to host 22 webinars and shared the series with the 3,300 BRG members.

67 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People Accelerating DEI Efforts at Hershey This year, we deepened our DEI work, putting our The Pathways Project employees front and center DEI has always been on our radar of our new, strengthened and top of mind. Following a DEI strategy. particularly traumatic 2020, we realized the time had come to To have the right impact, in the right way, intensify our DEI priorities and we have listened intently to our employees, do even more. using their experiences to explore ways to be I’m proud to see that our Pathways a company that truly advances inclusion in our Project is already having a visible business and our communities. As a result, together with a diverse group impact on our workforce, from our of employees, we co-created The Pathways manufacturing centers to corporate More pathways More pathways More pathways Project, our five-year plan to make our management. to JOIN: to GROW: to REACH OUT: workplace and communities even more It’s a strong start on ambitious Bringing in a wider range Recognizing and Showing up for consumers inclusive. commitments but we know there is of talent and perspectives developing talent that and communities in In 2021, we intensified our DEI priorities and still work to do. Supported by new was underrepresented new ways realized how much more we could and should hiring practices for 50% in the past Supported by seeking to be doing. We accelerated our commitments As we look to the future of The diverse slates of candidates Supported by unconscious improve access to education and recognized the need to pause, engage with Hershey Company, we will be and interviewers, expanded bias training, promoting for POC communities employees and strengthen Hershey’s inclusion guided by The Pathways Project. Not opportunities for remote diverse mentorship through new partnerships, strategy to truly embed DEI into the company — only will it help us hold ourselves hires and remote work, and commercial leader supporting BRG making it real and actionable every day. and new efforts to development to retain membership and engaging accountable to our targets, we will engage more diverse and promote in volunteering and giving Per Hershey’s commitment in our also use it to inform each and every suppliers. POC talent. opportunities. 2022 Proxy Statement, we’ve business decision to ensure that expanded DEI and human capital DEI stays at the forefront of Making disclosures in this report. For a Moments of Goodness, together. summary of our goals and KPIs related to our people, see page 74. How Hershey Defines Alicia Petross, Diversity: People of Color (POC): Chief Diversity Officer, Hershey defines diversity as dimensions Refers to Black, African American, Hershey of difference between people. These Hispanic/Latino, Asian/Asian Pacific dimensions are often referred to in terms Islander, Hawaiian Pacific Islander and of race and gender, but at Hershey, we those who identify as two or more races. also include dimensions such as age, ethnicity, sexual orientation, veteran status, physical abilities, etc.

68 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People 2021: Living DEI at Hershey It’s been a year since Mixing Remote Work And despite not walking into an office culture we launched our most and Inclusive Culture daily, Amber’s still been able to experience the Leading the Way for Women inclusivity of Hershey’s culture. “I am a co-lead We could not be prouder to have been ambitious DEI goals and, of the Women’s BRG (WBRG) and that’s helped listed number one on Forbes’ ranking of the as a company, we’ve me meet a lot of people while giving back to the World’s Top Female-Friendly Companies Amber Murayi, Hershey community. I really encourage my team in 2021. come a long way. Vice President of Strategy, members to think about what BRG they might Hershey want to join. I also got to meet almost every To determine the list, 150,000 full-time In the wake of the murder of George Floyd, member of the executive team early on. They and part-time workers from 58 countries the killing of Breonna Taylor and the injustices shared their learnings and networks — an open working for multinational companies and committed against Christian Cooper, among Amber Murayi joined Hershey during the display of how Hershey culture transcends all institutions were anonymously surveyed. others, we took a long hard look at where pandemic when remote working was the levels of employees.” The respondents were asked to rate Hershey could do more to fight for racial justice. only option. She understands first-hand how their willingness to recommend their We then rapidly implemented concrete plans to Hershey has been adapting our unique and own employers to friends and family and transform and amplify DEI across our company welcoming culture to ensure that remote evaluate other companies in their industry. and our communities. colleagues feel included. Under our first female CEO, Michele Buck, From providing unconscious bias training “The great thing about Hershey is that everyone women today make up 42% of our board. aligned to moments that matter to growing is friendly and engaging. As soon as I started, I Thanks to our Pathways Project goals, our pool of diverse recruiting sources and was setting up team meetings and one-on-one we aim to ensure women comprise 50% overhauling career paths and possibilities, we sessions. Meeting people was the top priority. of our overall workforce and 42% of our are now a new and even better Hershey. And in every conversation, I was given the leadership by 2025. In 2020, we achieved names of three additional people to talk to. 1-to-1 aggregate gender pay equity for But challenges remain. Some are familiar, like Having such an open company culture helps salaried employees in the U.S. (excluding the difficulty of attracting diverse talent to our remote employees get plugged in quickly. You recent acquisitions). In 2021, we achieved rural Pennsylvania location. Others are new, feel like you were walking the halls and got 1-to-1 aggregate POC pay equity for like the impact of a global pandemic. As the introduced to people on the way.” salaried employees in the U.S. (excluding pandemic continued to change the landscape Amber experienced how quickly Hershey recent acquisitions). of the American workforce, a key question for pivoted to adapt to processes that worked For additional details about Hershey became: how do we make this work for everyone’s new normal in a virtual work Hershey’s diversity KPIs, see for us? And what does inclusion in Hershey’s environment. “There is an intentionality around page 74. culture mean when we can’t all be together? in-person interactions that allows for remote employees to plan for virtual collaboration and everyone now makes the most out of those interactions. Up to 70% of my team is remote but we try to spend three days on-site together every quarter, where one of those days is just about team bonding.”

69 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People More Pathways to JOIN Pathways to JOIN is about changing the way we bring diverse representation into Hershey, with targets for recruitment and supplier diversity and powerful partnerships with educational institutions to grow tomorrow’s talent pool. Our Ambition In addition, we set a goal to achieve a college recruiting portfolio that is at least 50% • 50% diverse slate of candidates and diverse. To ensure we meet this, we added interviewers. 23 HBCUs and HSIs to our roster of universities • $400 million in spend with diverse businesses and schools that we recruit from. In 2021, throughout our supply chain by 2030. HBCUs and HSIs constituted 47% of our core universities/schools. Our Progress in 2021 To advance DEI beyond our workforce, we established a new supplier diversity goal to Our goal commits us to having a candidate slate increase our spend with diverse suppliers that is 50% diverse for every externally sourced to $400 million by 2030, helping promote role before we interview. In addition, we now economic equality and opportunity for diverse require our interview teams to consist of at 1 businesses. least 50% diverse employees. During 2021, we began to fully implement new practices to For more details about our supplier amplify diverse recruitment initiatives to meet diversity program, see page 70. these ambitions. For example, to aid in developing a diverse Going forward, our focus continues to be on candidate pipeline, we are expanding our eliminating barriers to employment to build a work with diverse-owned talent search firms, team and supply chain that is as diverse from setting a goal to have 30% of total search top to bottom as our consumer base. This is volume completed by such firms. We are more than an aspiration for us — it is a business extremely pleased to report that 41% of all talent imperative and a mandate from our CEO acquisition search volume in 2021 was led by Michele Buck. diverse-owned firms. 1 Diverse spend includes formal industry-recognized certification and self-certification, and Tier 1 and Tier 2 spend with U.S.-based suppliers. Diverse suppliers refers to businesses that are 51% owned, managed and controlled by women and/or Black, Hispanic, Asian, Indigenous, U.S. military veteran, LGBTQ+ and disabled persons, or other individuals that qualify as socio-economically disadvantaged.

70 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People Taking DEI Beyond Hershey Meet Some of Our Diverse — Our Supplier Diversity Suppliers Program Mays Chemical Company The Hershey Company has a commitment Mays is a Black- and woman-owned to and a track record of promoting DEI national distributor of chemical and raw in its supply chain. We aim to have our materials, offering vendor management, suppliers represent the customers and procurement services, blending and consumers we serve and believe this is repackaging. Mays has been a proud critical for innovation and business success. partner of Hershey for more than 10 Our supplier diversity program is currently years, providing exceptional quality and focused on the U.S. and supports economic service along the way. Throughout the growth for POC, women, veteran, LGBTQ recent pandemic, the company provided and disabled person-owned businesses. innovative sourcing solutions to overcome In 2021, we spent $92 million with 139 ever-changing supply chain challenges. 1 diverse suppliers, working toward our newly They are truly an innovative partner with established goal of $400 million by 2030. in-depth knowledge of the businesses In 2021, we brought in a new data partner they support. to strengthen our systems for tracking Chaucer Press, Inc. diverse supplier spend and to provide us Chaucer Press is a woman-owned with an improved tool for identifying and and award-winning industry leader in vetting new diverse vendors to include secondary packaging components, in bid opportunities. We also joined the supporting some of the largest National Minority Supplier Development multinational companies in the world, Council and Women’s Business Enterprise including Hershey. Chaucer Press is one of Center East to leverage their diverse our key strategic label suppliers, providing supplier networks and support their pressure sensitive labels for all our gum development of diverse businesses. and mint packages as well as in-mold labels To further integrate our supplier diversity for Hershey Syrup bottles. The company goals across our business, we engaged has been instrumental in helping drive all executive officers and their teams in our sustainability initiatives by partnering 2021. Supplier diversity champions were with our teams to research and qualify $92M nominated for each business group to recyclable label materials. spent with diverse help spearhead supplier diversity efforts 1 in partnership with procurement. We also suppliers in 2021 developed a new e-learning course on supplier diversity that will be launched early in 2022 to ensure all employees understand the importance of our program and how to play a role in achieving our goals. Finally, we enhanced our supplier diversity language in contracts to support an expansion of our 1 Diverse spend includes formal industry-recognized certification and self-certification, and Tier 1 and Tier 2 spend with U.S.-based suppliers. Diverse suppliers refers to businesses that Tier 2 program in 2022. are 51% owned, managed and controlled by women and/or Black, Hispanic, Asian, Indigenous, U.S. military veteran, LGBTQ+ and disabled persons, or other individuals that qualify as socioeconomically disadvantaged.

71 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People More Pathways to GROW Pathways to GROW commits us to actively recognizing Feedback and Coaching for Leaders We then provided key studies showing leaders and developing talent that has traditionally been We partnered with Practica to incorporate how diverse teams are more innovative and five unconscious bias scenarios in feedback exhibit advanced decision-making skills, which underrepresented while also creating an environment and coaching scenarios for leaders, including was key leader behavior during the pandemic where colleagues can operate with courage and learn micro-aggressions, micro-advantages, in 2021. from each other. inequities, micro-actions and their impact on By the end of the sessions, 402 people leaders the individual. Further exercises included small completed the course and 2,000 training hours group breakouts sharing “what would you do” were logged. questions. Leaders learned how to monitor Our Ambition The course also includes monthly mentor unconscious bias scenarios and address them as check-ins providing coaching and feedback they see them occur. We’re capitalizing on the strength of existing supporting the cohort project and personal talent by improving access to training and development goals. The first cohort of 60 pupils resources on leadership, racism, unconscious graduated in 2021. bias and well-being. We also launched Project Freeway, a new We continue to invest in early-in-career and initiative to help employees advance their mid-career development and training to careers by offering development tools and develop commercial skills and career building resources tailored to their unique needs. for POC and women. Implementing Unconscious Bias Training Our Progress in 2021 During 2021, for the first time, we mandated Through our Pathways to GROW pillar, we are unconscious bias training across the company. identifying and exploring multiple ways we can We now conduct training twice a year, with retain and actively engage current employees intentional timing to increase the likelihood while continuing to increase diversity and foster of employees incorporating the learnings a culture of inclusion. into their daily behavior. By the end of 2021, 6,943 unconscious bias training hours had Developing Diverse Talent been completed. We created new commercial acumen training. After each session, leaders met with their The five-month curriculum is designed to teams to reflect on the discussion questions. build the business acumen of diverse talent. Employees completed 1,960 leader-led The training covers financial acumen, project discussion hours in 2021. management, problem solving, strategic thinking, emotional intelligence and influencing skills.

72 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People How Our BRGs Are • Employees benefited from monthly well-being Driving Diversity webinars, eight of which were sponsored by the Abilities First BRG. Our eight employee-led BRGs — Abilities First, • Gender neutral restrooms were installed in Black Heritage, Asian and Pacific Islander, Hershey’s headquarters, Hershey Technical GenH (Generations), Latino, Prism (LGBTQ), Center in Hershey, Pennsylvania, and the Veterans and Women — are crucial to attracting Annville Fulfillment Center in Annville, diverse talent, providing mentoring and career Pennsylvania,. These are only a few examples of development opportunities, delivering business how our BRGs continue to develop talent and insights and connecting people to the company influence policy for a more inclusive Hershey. and the communities where we work. During 2021, the BRGs continued to deliver outsized impact in driving progress on our DEI ambitions. Over the course of the year, the Black Attending the Lunch ’n Learn Heritage BRG: sessions provided employees • Identified potential share gaps with POC opportunities to reflect, embrace consumers ($40 million Black consumer and cultivate change to the share gap and an $80 million Hispanic/Latino consumer share gap). openness of racial discussions • Influenced incremental Martin Luther King Jr. in the workplace. I found the Day and Juneteenth company holidays. sessions profoundly impactful • Designed and developed the Investing In observing vulnerability from Your Growth Speakers Series with over colleagues’ sharing their 4,000 attendees, as well as the Financial personal race related situations Acumen Lunch ‘n Learn six-part series to and feeling open to sharing my build commercial business skills. own experiences around being During the year, the Women’s BRG: a Black woman. • Collaborated with the HR team to develop the SmartFlex Time Policy for more flexible work schedules, positively impacting employees by LaQuita Smith-Gary, providing flexibility for managing virtual work Director, Employee and personal commitments. Relations and • Worked with our Information Security team Compliance, Hershey to share the Care Connect app, which helps employees access services like transportation, childcare or tutoring. • Held a seven-part career development Lunch ‘n Learn series.

73 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People More Pathways to REACH OUT Pathways to REACH OUT is about the work we do in our Investing in an Be Real communities to improve access to education for Black Inclusive Future The Pathways Project was born from and Brown students, empower and engage our BRGs In December 2020, Hershey became listening sessions. We knew that an and support volunteerism. the first company to endow a scholarship updated enterprise strategy needed to be with the Thurgood Marshall College Fund realistic about the gaps that exist and why, (TMCF). The fund represents and supports before employees could feel confident Our Ambition During the year, our DEI-focused volunteer the ambitions of nearly 300,000 students that we can close them. Employees efforts covered several local initiatives. attending 47 member schools that include outlined what gaps they believe exist We’re investing in the changes that are building We not only continued our long-standing public HBCUs, medical schools and when it comes to DEI: the communities we want to see: where youth of mentorship programs for students at Milton law schools. • Everyone needs formal and informal color have a clear and accessible path to quality Hershey School but also mentored students Hershey pledged a historic $1.5 million routes to grow their career. education and where everyone feels seen, at the Dauphin County Technical School investment with an aim to increase • DEI should be part of everyone’s job heard and supported. and across the Harrisburg School Districts. that to a total of $3 million over the description and tied to the business. This year, employees also began mentoring next 10 years. In 2021, we contributed Our Progress in 2021 youth participating in the NAACP ACT-SO $200,000 to the endowment, which will • Provide more opportunities for Achievement Program of Harrisburg. The provide scholarships for students pursuing remote work. Our commitment is to serve and support the program recognizes and supports young degrees in food science at TMCF member Thanks to their feedback, The Pathways local communities of all our stakeholders, people from underrepresented communities schools, which include public colleges Project is already doing the work to from our home in the heart of Pennsylvania who demonstrate academic, scientific and that provide advanced education for close the gaps and build a better to the diverse areas where we operate around artistic achievement. underrepresented populations. Hershey together. the world. As a part of this commitment, we are making We have been collaborating across an impact through educational investments, key functional areas (Retail, Finance, community programming and DEI initiatives Supply Chain and Engineering) to attract with supply chain partners. TMCF talent by leading career information workshops. Four of these workshops in In 2021, this work included adding the 2021 directly reached 135 prospective Equal Justice Initiative, League of United candidates. In addition, Hershey employee The Listen and Learn sessions Latin American Citizens and Asian Americans Star Gibbs leads forums for Thurgood with colleagues were a great Advancing Justice to Hershey’s roster Marshall students to learn more about way to field questions, share of partners. The Hershey Company. experiences and emphasize that Hershey is a place where people $1.5M from a range of backgrounds can succeed. original commitment in 2020 Daniel Mohnshine, Vice President of Innovation and R&D, Hershey

74 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People Our Progress Target Progress Goals Year (as of Dec. 31, 2021) OUR PEOPLE Achieve pay equity for similar job categories across our 2025 On Track global salaried employees In 2020, we achieved 1-to-1 aggregate gender pay equity for salaried employees in the U.S. (excluding recent acquisitions) and in 2021, we achieved 1-to-1 aggregate POC pay equity for salaried employees in the U.S. (excluding recent acquisitions). We seek to maintain existing achievements and continuous improvement on pay equity for similar job categories throughout our organization. 47–50% women representation across all employees 2025 Achieved globally and 30–40% people of color (POC)representation 47.7% women globally across U.S. employees1 On Track 24.6% POC in the U.S. 50% hazard reduction for job functions with ergonomic 2025 On Track risks through process improvements 17% 1 Refers to Black, African American, Hispanic/Latino, Asian/Asian Pacific Islander, Hawaiian Pacific Islander and those who identify as two or more races. KPIs 2,3 EMPLOYEES 2021 Global employees 18,990 Full-time 16,619 Part-time 2,371 Union representation Collective Bargaining Employees 33% (approximate percentage) 2 Data for 2021 total global, full-time and part-time employees in this table includes Hershey, Lily’s, Dot’s and Pretzels and is consistent with employee headcount data as reported in Hershey’s 2021 Form 10-K. 3 The 2021 percentage of employees covered by collective bargaining agreements includes employees worldwide.

75 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People KPIs 1,2 EMPLOYEES 2021 2020 2019 TOTAL FEMALE MALE TOTAL FEMALE MALE TOTAL FEMALE MALE Global employees 17,848 8,507 (47.7%) 9,341 16,877 8,125 (48.1%) 8,752 16,258 7,835 (48.2%) 8,423 Full-time 16,379 7,690 8,689 15,198 7,172 8,026 14,718 6,872 7,846 Part-time 1,469 817 652 1,679 953 726 1,540 963 577 Regular 16,934 7,894 9,040 15,437 7,103 8,334 14,725 6,854 7,871 Temporary 914 613 301 1,440 1,022 418 1,533 981 552 1 Race/ethnicity and gender percentages are based on employee self-identification in Hershey’s HR data system as of December 31, 2021. This employee data does not include Hershey’s recent acquisitions of Lily’s, Dot’s and Pretzels. 2 The 2019 female global employee percentage has been restated due to a calculation error. The raw data remains unchanged and is accurate. 3 EMPLOYEES BY TYPE AND REGION 2021 2020 2019 REGULAR TEMPORARY REGULAR TEMPORARY REGULAR TEMPORARY Globally 16,934 914 15,437 1,440 14,725 1,533 United States (including Puerto Rico) 9,972 355 8,970 468 8,382 770 Non-U.S. 6,962 559 6,467 972 6,343 763 Asia 1,077 30 1,414 7 1,413 12 Africa 0 0 0 0 0 0 North America 850 0 861 3 814 20 Europe 29 0 8 0 15 0 Latin America 5,006 529 4,184 962 4,101 731 3 This employee data (as of December 31, 2021) does not include Hershey’s recent acquisitions of Lily’s, Dot’s and Pretzels.

76 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People KPIs GLOBAL WORKFORCE BY AGE1,2 2021 2020 2019 Under 30 30-50 Over 50 Under 30 30-50 Over 50 Under 30 30-50 Over 50 years old years old years old years old years old years old years old years old years old Total workforce 24.4% 46.1% 29.5% 24.2% 44.8% 31.0% 23.5% 44.9% 31.5% Non-management 27.0% 43.2% 29.8% 26.5% 41.9% 31.6% 25.7% 41.9% 32.5% Management 7.0% 65.4% 27.6% 7.4% 66.1% 26.5% 8.1% 67.1% 24.8% Senior Leader 0.0% 55.2% 44.8% 0.0% 57.2% 42.8% 0.0% 61.0% 39.0% Executive team3 0.0% 44.4% 55.6% 0.0% 45.5% 54.6% 0.0% 35.7% 64.3% 1 This employee data (as of December 31, 2021) does not include Hershey’s recent acquisitions of Lily’s, Dot’s and Pretzels. 2 Data may not equal 100% due to rounding. 3 Hershey’s executive team includes employees who report to Hershey’s CEO, including the CEO. 4 U.S. WORKFORCE BY HERSHEY INTERNAL JOB CATEGORY 2021 FEMALE POC Executives/senior leaders 32.2% 17.3% Entry-level professional employees 46.5% 18.0% Leaders in commercial functions 33.3% 13.9% Sales employees 48.1% 14.6% Hourly manufacturing employees 35.0% 30.5% 4 Hershey internal HR job category data does not directly correlate to EEOC job category data. 5 U.S. WORKFORCE BY RACE/ETHNICITY 2021 2020 2019 U.S. workforce, Total POC 24.6% 21.4% 20.1% POC - Female 25.1% 21.2% 20.3% POC - Male 24.2% 21.5% 19.9% Asian 4.2% Not disclosed Not disclosed Black 12.1% Not disclosed Not disclosed Hispanic/Latino 6.6% Not disclosed Not disclosed 5 Race/ethnicity and gender percentages are based on employee self-identification in Hershey’s HR data system as of December 31, 2021. This employee data does not include Hershey’s recent acquisitions of Lily’s, Dot’s and Pretzels.

77 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People KPIs 1 U.S. NON-MANAGEMENT 2021 2020 2019 Total non-management as percentage of total workforce 87.0% 88.3% 87.8% Non-management – Female 49.1% 49.5% 49.4% Non-management – Male 50.9% 50.5% 50.6% Non-management – POC 26.0% 22.6% Not disclosed Non-management – Female – POC 26.2% 22.3% Not disclosed Non-management – Male – POC 25.8% 22.8% Not disclosed Non-management – Asian 3.9% Not disclosed Not disclosed Non-management – Black 13.3% Not disclosed Not disclosed Non-management – Hispanic/Latino 6.9% Not disclosed Not disclosed 1 Race/ethnicity and gender percentages are based on employee self-identification in Hershey’s HR data system as of December 31, 2021. This employee data does not include Hershey’s recent acquisitions of Lily’s, Dot’s and Pretzels. 2,3 U.S. MANAGEMENT 2021 2020 2019 Total management as percentage of total workforce 13.0% 11.7% 12.2% Management – Female 37.7% 37.4% 36.6% Management – Male 62.3% 62.6% 63.4% Management – POC 16.7% 13.8% 13.1% Management – Female – POC 18.0% 13.6% 12.9% Management – Male – POC 15.9% 13.9% 13.2% Management – Asian 5.9% Not disclosed Not disclosed Management – Black 4.9% Not disclosed Not disclosed Management – Hispanic/Latino 5.1% Not disclosed Not disclosed 2 Management level data includes Hershey people leaders or employees at an internal pay band level of 2B or higher. This data is not mutually exclusive and overlaps with some headcount also included in the Senior Leader level data on page 78, which includes employees at an internal pay band level of 3B or higher. 3 Race/ethnicity and gender percentages are based on employee self-identification in Hershey’s HR data system as of December 31, 2021. This employee data does not include Hershey’s recent acquisitions of Lily’s, Dot’s and Pretzels.

78 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People KPIs 1,2 U.S. SENIOR LEADER 2021 2020 2019 Total senior leader as percentage of total workforce 2.0% 1.8% Not disclosed Senior leader – Female 32.0% 33.4% 31.9% Senior leader – Male 68.0% 66.6% 68.1% Senior leader – POC 17.0% 13.5% 14.4% Senior leader – Female – POC 25.3% 21.7% 22.4% Senior leader – Male – POC 13.0% 9.3% 10.6% Senior leader – Asian 7.5% 6.1% Not disclosed Senior leader – Black 2.9% 3.7% Not disclosed Senior leader – Hispanic/Latino 5.9% 3.3% Not disclosed 1 Senior leader level data includes Hershey people leaders or employees at an internal pay band level of 3B or higher. This data is not mutually exclusive and overlaps with some headcount also included in the Management level data on page 77, which includes employees at an internal pay band level of 2B or higher. 2 Race/ethnicity and gender percentages are based on employee self-identification in Hershey’s HR data system as of December 31, 2021. This employee data does not include Hershey’s recent acquisitions of Lily’s, Dot’s and Pretzels. 3,4 EXECUTIVE TEAM 2021 2020 2019 Total executive team as percentage of total workforce 0.1% 0.1% 0.1% Executive team – Female 22.2% 27.3% 28.6% Executive team – Male 77.8% 72.7% 71.4% Executive team – POC (# and %) 2 (22.2%) 3 (33%) 3 (33%) Executive team - Female - POC 0.0% 0.0% 25.0% Executive team - Male - POC 28.6% 28.6% 22.2% Females on executive team (# and %) 2 (22.2%) 2 (22%) 2 (22%) 3 The executive team includes employees who report to Hershey’s CEO, including the CEO. 4 Race/ethnicity and gender percentages are based on employee self-identification in Hershey’s HR data system as of December 31, 2021. This employee data does not include Hershey’s recent acquisitions of Lily’s, Dot’s and Pretzels.

79 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our People KPIs 1 BOARD OF DIRECTORS 2021 2020 2019 Women on Board of Directors 5 (42%) 5 (36%) 5 (42%) POC on Board of Directors 2 (17%) 2 (14%) 1 (8%) 1 The number of directors on Hershey’s Board decreased from 14 in 2020 to 12 in 2021. This decrease impacted the percentage of women and POC representation, even though the actual number of Directors that that self-identify as women and POC did not change. 2 SAFETY 2021 2020 2019 Total Recordable Incident Rate (TRIR) 1.46 1.45 1.36 Days Away, Restricted, Transferred (DART) 1.17 1.09 1.02 Lost Workday Incident Rate (LWIR) 0.63 0.54 0.51 Fatalities (work-related) 0 0 0 2 Our rates have been calculated on a per 200,000-hours-worked basis. We meet all regulatory record-keeping and reporting requirements for work-related injuries. Our statistics include all workers who are not employees but whose work is controlled by our organization. We do not track metrics for contractors: each contractor company is responsible for gathering this information and reporting it according to local requirements.

80 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Youth turing Nur Helping Young Their People Thrive From the moment Milton Hershey ial founded a school for orphaned boys in nt 1909, Hershey has continued our founder’s e legacy of helping children succeed and Pot reach their full potential. Today, we support children and youth through programs that support kids’ nutrition, education and social emotional well-being.

81 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Youth The Heartwarming Project Young people today are more likely to report feeling 1 lonelier than any other generation, and teens today report high levels of stress, anxiety and other mental health challenges. 2 Research has shown that increasing social and In 2021, we also kicked off the Hershey emotional skills, such as practicing empathy and Heartwarming Project Youth Advisory Board, inclusion, and fostering meaningful connections a group of 15 talented teens from across with peers, adults and the community, can make the U.S. who collaborate with Hershey on all the difference for improving youth outcomes HWP and other children and youth-focused and well-being. The pandemic has also been initiatives. Our programs are strongest when having a profound impact on the mental health they incorporate the voices and ideas of those 3 of adolescents. In 2018, Hershey created The we are aiming to serve. These young people, Heartwarming Project (HWP) to help kids and who are active on the InnerView™ service teens build these skills and celebrate the power learning app, have distinguished themselves of connection for youth well-being. through their school and community involvement activities and their passion for How We Do It creating more inclusive communities. Their insights have been critical in shaping HWP’s Through HWP, Hershey supports programs strategy and programs. for children and teens with social-emotional learning-based approaches that improve youth For a summary of our goals and well-being and prepare them for success in KPIs on HWP, see page 85. the workplace and over the course of their lives. We also work with nonprofit partners to inspire, encourage and highlight young people who take action to create more inclusive, empathetic communities. Since 2019, Hershey has partnered with WE to award $250 microgrants to up to 500 teens annually across the U.S. leading projects focused on building inclusion, empathy and connection in their communities. During 2021, we continued our Heartwarming Project Action Grants Program and received more than 1,000 applications. 1 Loneliness is at epidemic levels in America | Cigna 2 Loneliness and Social Isolation as Risk Factors for Mortality | Perspectives on Psychological Science 3 The impact of COVID-19 on the mental health of adolescents and youth | UNICEF

82 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Youth Supporting Connections In 2021, we also expanded our support for youth Our 2021 partnerships to spread inclusion and well-being programming outside the U.S. In Heartwarming Young Empowering connection included continued support for Canada, the Sweeter Together project launched Heroes Award Winner Young Heroes Boys & Girls Clubs of America’s Keystone Club in partnership with BGC Canada (formerly Nourishes Others In the rural Fairfield, Illinois, community teen program. Hershey is a proud supporter of Boys and Girls Club of Canada), which includes where six-year-old Perry Kimberlin lives, this program, which encourages teens at clubs support for the Buy a Bar, Build a Court program Yusuf Mehdawi, a six-year-old from San approximately one in 10 people received across the U.S. to work together on community- and sponsorship of BGC Canada’s Pink Shirt Antonio, Texas, has always been concerned a positive COVID-19 diagnosis during focused projects, building leadership, character Day programming to end bullying and increase about people who do not have enough the first 12 months of the pandemic. This and other critical social and emotional skills in inclusion and connectedness among youth. food to eat. As a member of the youth caused a major challenge as the 16,000 the process. Additionally, the Hershey team in the United group at the Muslim Children Education residents have access to only one hospital Kingdom kicked off a partnership focused and Civic Center (MCECC), in 2019, Yusuf in the county, Fairfield Memorial Hospital. We continued our support of Harvard on mental well-being efforts for older teens worked with MCECC to make and sell Many of Perry’s family members work and University’s Making Caring Common project to and young adults via a partnership with the crafts with all proceeds going to the San volunteer in health care. Inspired by the provide parents with evidence-based caregiving nonprofit CALM. The partnership included Antonio Food Bank. Then, in the early work of his family and with the support of strategies to raise more caring, empathetic brand support from Reese’s for a campaign months of the pandemic when the San a Hershey Heartwarming Young Heroes and inclusive children. We also continued our encouraging consumers to ask “u ok?” to one Antonio Food Bank was serving twice grant, Perry hosted “Be the CHANGE,” a sponsorship of the WE Well-being program, another to check in on the mental well-being of as many people each week, Yusuf was week-long coin drive to raise money for the which provided critical well-being resources for friends. In South Korea, Hershey also launched awarded a Hershey Heartwarming Young hospital. Perry worked with local businesses more than 105,000 teachers, and partnered a partnership with ChildFund Korea to support Heroes grant. For his Global Youth Service willing to serve as coin drop-off sites and once again with the Crisis Text Line to support the NGO’s mental health programs for children. Day project, Yusuf and the members made sure to engage his classmates at their efforts to boost empathy and raise of his youth group made crafts ranging Northside Elementary. With the help of awareness of their mental health platform from picture frames and pencil holders to school administration and teachers, Perry among teens. In addition, we continued birdhouses and tote bags. As Global Youth held a school-wide competition to see our support in creating connections and Service Day happened during the holy which classroom could raise the most boosting empathy among teens from different month of Ramadan, Yusuf’s youth group money. Between these initiatives and a backgrounds and cultures via our sponsorship sold their crafts as Eid gifts after evening door-to-door coin collection, Perry and of the Global Nomads Group’s Seat at the Table prayers at MCECC’s mosque, raising 312 student volunteers raised $3,262.48! program, which uses technology to bring small approximately $1,000 or the equivalent The funds will help the Fairfield Memorial groups of teens together for cross-cultural of 7,000 meals for the San Antonio Food Hospital Foundation purchase pediatric conversations on topics of their choice. Bank. He also spent a day helping sort rehabilitation equipment for their new wing and pack 13,000 pounds of food to be that is currently under construction. In addition, we worked with Youth Service distributed to people in 16 counties across America on the “Heartwarming Young Heroes” south-central Texas. grants program to inspire young people to lead service activities aligned with The Heartwarming Project’s mission on Global Youth Service Day in April 2021. This program engaged more than 27,000 youth who took part in 528 projects worldwide.

83 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Youth Conversations trying to support young people through these Creating Unique Run Jump Throw for Change-Makers events. The support provided to EmbraceRace Community Spaces In collaboration with the Hershey helped the organization pilot a video game Company, USATF launched a brand-new The Hershey Company joined with other about structural racism, launch new action In early 2021, Hershey Canada launched series of RunJumpThrow (RJT), virtual companies and foundations to support the work guides and resources and host 18 Talking Race a new partnership with the National content in 2021 for children to learn the of EmbraceRace. EmbraceRace is a nonprofit & Kids webinars in 2021. One Talking Race & Basketball Association (NBA) in Canada. sport’s fundamentals from Olympic and organization that supports parents, guardians, Kids webinar featuring New York’s Epic Theater Not only did Hershey become the official elite athletes. A Facebook live interactive educators and other caregivers working to Ensemble, “A conversation with teens who chocolate of the NBA in the country, virtual RunJumpThrow was hosted by raise children who are thoughtful, informed explore racism with their art,” made it clear but together with BGC Canada, we Olympian Raeyvn Rogers to provide and brave about race. The events of 2020 and that POC are not simply “acted on” by the implemented the “Sweeter Together” families and school children a way to keep 2021 called into sharp relief the devastating institutions and systems they move within, but grassroots initiative to grow youth active while staying safe at home. pattern of racialized vulnerability including the are also incisive critics and agents of change basketball participation and improve impacts of the pandemic, the violent deaths within those systems. access to the game across Canada. In addition to the virtual events, short and of George Floyd and others and the surge in The three-year community-driven project interactive track inspired “Brain Breaks” hateful words and actions targeting Asian- will help grow basketball participation were created to provide students a Americans. They also highlighted the challenges among young athletes by investing in new break from virtual learning. New, shorter, faced by parents, caregivers and educators basketball infrastructure and improving interactive “Brain Breaks” offer track and access to the game nationwide. field-inspired activities and games for students to safely participate at home. We pledged to donate a minimum of RJT has reached more than 850,000 kids CAD $300,000 in 2021 to support since it first launched with The Hershey basketball initiatives in Canada with the Company’s support in 2015. Buy a Bar, Build a Court program, which included our REESE’S, HERSHEY’S and OH HENRY! brands. The Buy a Bar, Build a Court program kicked off with Hershey and the NBA refurbishing two basketball courts, one at a BGC in Scarborough, Ontario and a second at a BGC in Burnaby, British Columbia. The refurbishment included custom designs from two artists, Scarborough’s Jacquie Comrie and Vancouver-based design studio Chairman Ting, to create a powerful community asset for years to come. Credit: Epic Theatre Ensemble

84 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Youth Our Shared Goodness Legacy — Milton Hershey School Since 1909, Milton Hershey School (MHS) has offered children from low-income and working family backgrounds in the U.S. a residential, cost-free, high- quality pre-kindergarten through 12th-grade education. MHS is a place where students’ potential meets Additionally, Hershey’s Project Fellowship life-changing opportunity thanks to our shared program continued, pairing teams of Hershey founder, whose entrepreneurial spirit and employees and their families with MHS student commitment to helping youth succeed blended homes to provide community connections to create an early social enterprise. and take part in fun activities together. In Milton Hershey bequeathed his ownership of 2021, activities were largely virtual, but the The Hershey Company to the Milton Hershey connections made continued to make all the School Trust, with MHS as the sole beneficiary. difference for Hershey employee volunteers and The Milton Hershey School Trust continues to MHS students alike. Sales team employees from be Hershey’s largest shareholder and receives Columbus, Ohio, partnered with their Milton a substantial portion of the dividends we pay Hershey Project Fellowship home by sponsoring each year. This unique relationship means that a virtual spa night for female students that Hershey’s success directly benefits the school included snacks, candy and personal letters to and more than 2,000 students. In addition, our each student. Employees also surprised MHS employees have the opportunity to participate girls who made the honor roll by providing a in unique volunteer programs with MHS that pizza party for all their hard work in school, foster connection and community with the including their adaptability and determination. students and staff. We continued our partnership with MHS to deliver the Hershey Honors Business Program, which includes business-focused mentoring and coaching from Hershey employees, who serve as guest teachers on various business topics each week during the course. The five-month program culminates in final presentations from students where they pitch their own unique business ideas to Hershey subject matter experts providing feedback and grading.

85 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Youth Our Progress Target Progress Goals Year (as of Dec. 31, 2021) YOUTH 50 million children globally supported through education, 2025 On Track 1 nutrition, and social and emotional well-being 15.4 15.4M 100,000 children take Heartwarming actions and impact 2025 Achieved 2 their communities 141,000 128,800 children 1 More than 15.4 million children were supported, cumulatively from January 1, 2020 to December 31, 2021. 2 More than 128,800 children took action and impacted their communities, cumulatively from January 1, 2020 to December 31, 2021. KPIs THE HEARTWARMING PROJECT 2021 2020 2019 Children reached through The Heartwarming Project (HWP) partnerships 7,056,038 6,705,120 6,710,696 Youth directly benefiting from HWP investments 617,194 667,000 775,386 Youth taking part in Heartwarming actions 67,581 61,243 12,440

86 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Community e n c t n i o n C g T h r ough Hershey has a long tradition of s putting people first — from creating K s a town where our employees and in e their families could thrive to our long- dn standing partnerships that keep families fed and lend a hand during hard times. We have always been a purpose-driven company and take great pride in living our value of Making a Difference. We all carry on Milton Hershey’s legacy of kindness, support and showing up in our communities.

87 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Community Values With Impact — How Hershey Makes a Difference Our long-standing We work closely with counterparts in each Matching Employee Donations Employees also receive up to two days of paid philanthropy and of our plant and office locations across the Hershey has long supported the causes time off to volunteer through our Employee U.S. and globally to identify local community important to our employees through our Volunteerism Policy. Furthermore, we offer volunteerism efforts are needs and craft tailored approaches to matching gifts program and workplace- a Dollars for Doers program, which rewards managed by our Global provide support. This work includes forging giving campaigns. Our year-round employee employees who volunteer at least 50 hours partnerships with local NGOs, providing grants matching gifts program matches up to $5,000 per year by awarding a $500 grant to their Sustainability team. The and contributions, and organizing volunteer in charitable donations per employee each nonprofit of choice. team collaborates closely service activities and employee fundraisers. calendar year. We also match employee We encourage all grantees to provide impact donations (up to $10,000 per employee with team members at reports with both quantitative and qualitative each calendar year) made via payroll each of our plant and office data, and host annual meetings with NGO deductions during our Season of Giving partners to evaluate the effectiveness of our workplace campaign. locations around the world. philanthropic investments. We provide both philanthropic contributions Supporting Employees and product donations to nonprofits in and Their Families communities where we have a presence. We do Hershey supports several grant and scholarship not maintain a corporate foundation; instead, programs for employees and their families. we direct a portion of our annual net sales to The Hershey Company Scholars Program, community philanthropic endeavors. In 2021, administered by Scholarship America, provides that amount was 0.18%. The company’s giving eligible children of employees with merit- guidelines, criteria and application portal are based scholarships for college. Additionally, published on our website, and we use these our Hershey Company Employees 1st Fund criteria when assessing requests for both cash provides grants of up to $5,000 to employees grants and product donations. facing financial hardship from natural disasters, illness or other unforeseen circumstances. It isn’t what you leave “ your children but how you leave them. Milton Hershey

88 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Community Showing up for Our Communities Making an Impact Puerto Rico Our Hazleton, Pennsylvania, manufacturing Around the World As the pandemic continued to impact countries plant kicked off a partnership with the Hazleton and communities around the world, Hershey Integration Project’s Hazleton One Community India teams in Puerto Rico raised funds that were Center to support the organization’s afterschool donated to the Pediatric Hospital Foundation. and early childhood programs and adult To celebrate International Women’s Day, The funds were used to buy three temperature workforce development programs. This support Hershey India donated products to the women scanning stations for hospital entrances to includes ESL and citizenship classes as well as at the NGO Shrimad Rajchandra Love and Care. enhance COVID-19 safety measures. job training programs for community members. The social-service wing of the organization It is a significant strategic partnership for talent works to empower women across Gujarat by For more information about global pipeline development and community impact easing access to health care and providing recognition Hershey received in 2021, in this majority Latino community. business training and education to enhance see page 9. self-reliance. Brazil Continuing Our Support Easter is the most important season for for Social Justice in the U.S. chocolate in Brazil as families celebrate In the wake of growing violence against Asian the holiday with sweet treats. In the face of Americans, we established new partnerships rising hunger across São Paulo, during one with Asian American organizations, including of the worst waves of the pandemic, Hershey Asian Americans Advancing Justice and Asian employees decided to take action. The Indian Americans of Central Pennsylvania. company donated $100,000 to three NGOs in Additionally, we established new partnerships São Paulo and São Roque to support more than supporting the Latino community, partnering 1,800 families with food baskets over a three- with the League of United Latin American month period. In addition to the food baskets, Citizens. Hershey also supported the newly the team also put together product donations established Center for Racial and Gender Equity to help families facing poverty celebrate Easter at YWCA Lancaster, and continued its support 2021 with their children. for anti-racism efforts at YWCA Harrisburg. During 2021, we also continued our long-time partnerships with NAACP’s Afro-Academic, Cultural, Technological and Scientific Olympics in Greater Harrisburg, Pennsylvania, with members of our African American BRG lending their time and expertise to the student competitors. We also continued our collaboration with TMCF. See the Our People chapter of this report on page 62 for more details.

89 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Community Being a Good Neighbor Our plant employees The Stuarts Draft Plant set a goal to donate across the U.S. came 1,000 jars of REESE’S Peanut Butter to their local Blue Ridge Area Food Bank. To meet this together in many goal, they asked employees to add $2 to their ways throughout 2021 to company store purchases to cover the cost of a jar of peanut butter for their local Blue make a difference in their Ridge Area Food Bank. The positive response communities. These are was overwhelming and the team ended up providing 2,500 jars. just a small sampling The Hazleton Plant celebrated National Salute of how: to Veteran Patients Week by donating candy and Hershey T-shirts to spread joy. Lynette Sanders, Production Supervisor at West Hershey, started recruiting employees to volunteer at Central Pennsylvania Food Bank events in 2019. Their volunteer group has since grown from six employees to 22 and they continue to hold quarterly events to help sort, box and pack food items at the facility. The Memphis Plant employees supported Feed the Needy by donating three pallets of water and food to help families celebrate Easter and donated an additional 2,500 units of both HERSHEY’S Cocoa and REESE’S Peanut Butter for the organization’s Thanksgiving meal box event. The Memphis team also spent a morning packing Thanksgiving meal boxes with Feed the Needy.

90 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Community A Culture of Giving Back While donations are Good to Give Back Month Tackling Hunger Head On Hershey Canada also continued its one way to support our Households with children are more than partnership with Food Banks Canada, focusing Every year, Hershey encourages employees on child hunger programs and their Food communities, we also to come together to give back to their 1.7 times more likely to face hunger than Explorers program. Hershey Canada donated 1 communities as volunteers. Our 2021 households without children. Throughout CAD $50,000 as well as an additional donation make a difference by Good to Give Back Month engaged over 2021, Hershey employees around the world of more than CAD $5,000 raised via employee volunteering. 1,000 employees, who volunteered virtually supported local hunger organizations and food fundraisers. This support enabled Food Banks and in person with community and national banks, and organized collections of food. Canada to provide 150,000 fresh food packs From using our expertise to build the capacity nonprofits. We once again gave the added Hershey proudly continued its partnership to children in 180 communities. of food systems entrepreneurs in Africa to flexibility of an entire month to take part and with Feeding America by focusing on the providing hands-on support for community ensured we provided in-person activity options nonprofits, we are always giving back in the requiring PPE and social distancing. In addition intersection of children and hunger, which places where we live and work. to in-person volunteer options that ranged aligns to our commitment to support children in Partners in Food Solutions from trail maintenance, community gardening, need and our desire to strengthen communities For a summary of our goals and KPIs food pantry services and literacy activities, where we operate. Hershey’s support enabled Since 2015, The Hershey Company has on community giving and volunteering, employees also took part in food drives and Feeding America’s ongoing national efforts supported Partners in Food Solutions see page 92. participated in several virtual volunteer lunch focused on child hunger and sponsored a (PFS), a nonprofit working to improve and learn opportunities hosted by NGO grant program for member food banks in five food security, nutrition and economic partners such as Partners in Food Solutions, of our U.S. manufacturing communities across development in Africa by linking our Crisis Text Line, Big Brothers Big Sisters and four states. In 2021, these grants served more talented team members with promising Rise Against Hunger. than 9,000 children and families. Our support entrepreneurial food companies to focused on meeting the needs of children help solve their food challenges. Since and families where they were, underwriting our partnership began, Hershey team programs specifically designed at home, after members have contributed over 6,600 1,050+ school, over weekends and vacations, and over hours and supported 97 different clients employee the summer through School Pantry, Summer across Sub-Saharan Africa. volunteers 55 Meals, Backpack and Kids Café programs. In 2021, Hershey volunteers supported organizations PFS clients, 35% of which are owned or supported managed by women, to share knowledge, empower entrepreneurs, improve nutrition globally and strengthen food value chains in Africa. 1,500 volunteer hours 1 Household Food Security in the United States in 2020 | USDA

91 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Community Children’s Miracle Network Making Moments of Goodness Highlighting Health Care The Women’s BRG and volunteers at In the U.S., we continued our partnership with Hershey’s ONE Brands team donated a total of Around the World our Monterrey, Mexico, plant donated Children’s Miracle Network (CMN), donating $25,000 to four organizations: B Strong Ride items to make mastectomy cushions and to support efforts at the national level and and Alex’s Lemonade Stand Foundation, both The ongoing pandemic has put health care delivered them to the cancer association, at our corporate headquarters in Hershey, fighting children’s cancer; Charlotte Angels, facilities around the world under incredible XTíXMíXNosotras. The donation helped Pennsylvania. Our employees raised $350,000 providing support to children in the foster care pressure. Hershey employees tried to ease more than 100 women who have had for CMN in 2021 by hosting an annual Easter community; and Brothers Redevelopment, Inc., the burden where they live in different ways. a mastectomy. egg scramble, 5K race and golf tournament providing housing solutions for low-income, In Brazil, $169,000 in pandemic relief While Hershey discontinued its in-house benefiting CMN. elderly and disabled residents. The ONE Brands donations was used to give food baskets, production of disposable masks at the The company also continued its support for team also took part in volunteer activities with hospital materials and equipment, and start of 2021, we continued to donate our CMN’s Child Life program endowment and these organizations. a total of 208,000 chocolate bars to inventory of disposable masks through established the CMN Educational Equity Hershey Brazil donated and assembled several hospitals. the end of the 2020-2021 school year to Scholarship at the Penn State College of hundreds of items, including school kits, books, Hershey Mexico donated medical equipment schools and nonprofits. We also restarted Medicine to help support diversity in the electronic equipment, food packages and and supplies to hospitals in Guadalajara to the program in fall 2021 to support schools medical field and decrease health disparities chocolate kits, for the Granada Institute. help youth burn victims receive treatment. with ongoing mask needs in response to in pediatric care. The Hershey team in Switzerland donated The hospitals, referred to as “hospitales new variants. We also provided N95 masks $10,800 to SGAD, an organization that civiles,” are public health care centers that to Boys & Girls Clubs in Puerto Rico that supports people dealing with mental health provide services to people with no social needed additional PPE to protect their young issues around fear and depression. security coverage. Because they operate members and staff. In 2021, Hershey donated with limited resources, Hershey’s support is more than 575,000 masks to schools and crucial to helping them continue their work community organizations. of providing services to underprivileged children. The support was made possible through donations from our Mexico-based employees through Fondo Unido Noreste (United Way) and the company’s 1-to-1 match of those contributions.

92 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Community Our Progress Target Progress Goal Year (as of Dec. 31, 2021) COMMUNITY $105 million donated in cash and products to community 2025 On Track partners focused on education, community economic $43M development, inclusive communities and health and human 1 services where we live and work 1 Hershey donated $43 million in cash and products, cumulatively from January 1, 2020 to December 31, 2021. KPIs DONATIONS AND VOLUNTEER HOURS 2021 2020 2019 Cash donations (USD in millions) $11.3 $16.9 $12.2 In-kind/product donations (USD in millions) $5.1 $9.7 $8.3 Employee volunteer hours 117,197 62,256 135,805

93 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report About This Report About This Report This ESG Report covers the 2021 calendar year, These forward-looking statements reflect This is The Hershey Company’s 10th report. which is also our fiscal year. our current assumptions and expectations, For this publication, we transitioned from Select environmental data within this ESG including statements regarding our sustainability to ESG reporting. The 2021 Report has been assured by Quantis, an environmental, social and governance targets, ESG Report covers our most material ESG independent verifier. goals, commitments and programs and other topics and the issues where we can have the business plans, initiatives and objectives. We greatest impact. All financial figures are reported in U.S. dollars, are subject to changing economic, competitive, unless otherwise stated. regulatory and technological risks and We believe that transparency is essential to We welcome any feedback you have on our uncertainties that could have a material impact living our values and operating responsibly, ESG disclosures. Please direct inquires to on our actual future results. which is why we seek to provide the greatest sustainability@hersheys.com. For information on factors that could cause disclosure possible in our reports. To support our actual results to differ materially from the our commitment, we report against the Forward-looking Statements forward-looking statements, please see The following ESG frameworks and standards: Hershey Company’s filings with the Securities • GRI Report (Comprehensive option) This ESG Report contains certain forward- and Exchange Commission, including our looking statements within the meaning of the most recent annual report on Form 10-K • SASB Private Securities Litigation Reform Act of 1995. and subsequent reports on Forms 10-Q and • Task Force on Climate-related Financial Many of these forward-looking statements 8-K. The Hershey Company undertakes no Disclosures (TCFD) can be identified by the use of words such as obligation to publicly update or revise any • United Nations Global Compact (UNGC) “anticipate,” “assume,” “believe,” “continue,” forward-looking statements to reflect “estimate,” “expect,” “forecast,” “future,” actual results, changes in expectations or • UN Guiding Principles Reporting Framework “intend,” “plan,” “potential,” “predict,” “project,” events or circumstances after the date of this (UN GPRF) “strategy,” “target” and similar terms, and ESG Report. • UN Sustainable Development Goals (SDGs) future or conditional tense verbs like “could,” “may,” “might,” “should,” “will” and “would,” In addition to these reports, ESG-related among others. policies and resources can be found on our Sustainability Reports, Policies and Resources webpage.