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.