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.