16 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Excellence in Food Safety Hershey maintains some To drive the right behaviors around food For a summary of our goals and KPIs of the highest food safety safety and quality, we have standardized our on this topic, see page 19. manufacturing facility personnel onboarding production standards and annual refresher training. This training in the industry. is required for 100% of our manufacturing facility employees and is incorporated into the integration process for any acquired We go beyond compliance with national and manufacturing facilities. Additionally, specific international standards, and every part of our food safety and quality training programs manufacturing process is subject to rigorous were created and implemented for Hershey auditing and oversight. quality assurance, engineering, compliance and marketing professionals. We maintain a Product Excellence Program (PEP), which is our Quality Management Food Safety in Our Value System for Food Safety, Regulatory Compliance Chain — and Beyond and Product Quality. PEP is focused on identifying, reducing and eliminating risk Hershey sources 100% of ingredients from throughout product design, supply chain, suppliers approved through the Hershey production and distribution. Supplier Quality Management Program, which Our Quality and Regulatory Compliance team is defined and executed in compliance with continually reviews and evaluates emerging applicable GFSI and regulatory requirements. regulations and industry practices to ensure Hershey has also been working with suppliers PEP is meeting the latest requirements and to help them achieve certification under a best practices. PEP’s elements meet or exceed recognized GFSI standard and has made great current Global Food Safety Initiative (GFSI) progress toward the goal of sourcing 100% of standards. In addition, all Hershey-owned our ingredients from GFSI-certified suppliers. manufacturing facilities are GFSI certified, As of the end of 2021, 93.8% of our suppliers which is an independent verification of the globally have achieved certification, covering 1 99.8% of our sourced ingredients by spend. strength of our food safety and quality systems. But our success is more than our programs — In 2021, we became a member of the people are at the core. Alliance to Stop Foodborne Illness (STOP), All Hershey products are designed and a national nonprofit that brings together food produced under a hazard analysis and industry companies, industry members and the risk-based preventive controls (HARPC) Food and Drug Administration. The Alliance is approach, which is part of the U.S. Food Safety collaboratively designing and implementing Modernization Act. innovative and tailored programs to integrate motivational elements of personal stories into food safety culture and training programs. In addition, the Alliance is building broader education and awareness by engaging small and medium companies across the supply chain. 1 References to the GFSI certification of our facilities and ingredients suppliers do not include any facilities or suppliers associated with Lily’s, Dot’s, or Pretzels.