53 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 Making Progress on Packaging Sustainable packaging As of December 31, 2021, qualified alternatives Exploring sustainable packaging requires a is important to have been identified for more than 50% of holistic approach that balances safety, quality, PVC, with conversions underway. The balance consumer needs, and manufacturing and consumers — and to of Hershey’s PVC is on track to have qualified distribution requirements. Our priority is to how we can reduce our alternatives identified by the end of 2022. make sure Hershey packaging continues to We are driving our recyclable plan by finding deliver high-quality and safe, consumable environmental footprint. materials that reduce our reliance on mixed- products to market. plastic materials that are not recyclable and are actively qualifying single-material alternatives For a summary of our goals and KPIs Packaging waste is a global issue and we aim to that are more easily recyclable. Within this related to packaging, see page 60. use our expertise and resources to help provide space, we expect to begin conversion on some solutions that both deliver on food safety and items in the U.S. as early as 2022. reduce waste in the environment. Increasing our proportion of sustainable In addition to recyclable plastics, we are packaging and ensuring responsible production exploring paper and compostable alternatives and disposal play an important part in reducing across several regions, including the U.S., our Scope 3 GHG emissions. Mexico, Brazil and Asia. Beyond these efforts, we continue to drive circularity by increasing We use a range of tools and data to make and our use of recycled materials across our track our progress, including sustainability portfolio. One example is the transition to calculators and quality and life cycle analysis. 100% recycled material for corrugate cases by our Reese’s and Monterrey facilities. This effort alone has saved almost 625,000 hours Progress Against Our of energy, over 14,000 trees and almost two million gallons of water. It also reduced Packaging Commitments GHG emissions by over 12 million pounds. In 2021, we announced three ambitious Lastly, we continue our long-standing new packaging goals: commitment to reducing packaging waste to • Eliminate hard-to-recycle PVC landfill by eliminating unnecessary packaging. by the end of 2022. In 2021 alone, we eliminated 9.5 million pounds of material through packaging elimination, • Ensure 100% of our plastic packaging redesign and downgauging. Our focus extends is recyclable, reusable or compostable beyond just the consumer package to include by 2030. secondary, transport and display packaging • Reduce our packaging weight by an where we are investing in design solutions additional 25 million pounds by 2030. that drive distribution efficiencies to eliminate extra trucks on the road to minimize associated GHG emissions.