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.