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