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.