11 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 Corporate Governance Hershey prioritizes working with integrity and being Board of Directors transparent in all we do. Committed to living our values, The full Board oversees our ESG strategies and priorities, along with the most we have developed robust policies and procedures to act important emerging ESG trends, risks and opportunities. ESG-related oversight responsibilities are divided among the Board’s committees, with oversight for ESG responsibly across our operations and supply chain. governance residing with the Governance Committee. Management and ESG We regularly review our processes to align with the leaders typically provide deep dives on ESG issues for the full Board at least once a changing regulatory landscape. year, with relevant committee updates occurring frequently throughout the year. 1 In 2021, our Corporate Governance Guidelines Our Board were updated to clarify the Board’s role in Executive Sustainability overseeing all ESG matters, including our Committee Steering Committee ESG strategies, priorities, progress, risks and Our CEO and her direct reports conduct Composed of key business leaders and 50%+ opportunities. All Board committee charters at least quarterly reviews of our Shared ESG subject matter experts, this cross- were enhanced to include oversight of each Goodness Promise strategy, data and functional group meets bimonthly to 12 Board committee’s relevant ESG responsibilities and progress against our commitments and evaluate ESG strategy effectiveness and aged 50+ 12 diversity reporting requirements. targets, as well as emerging ESG and interdependencies, provides input on Directors While various ESG-related matters have been sustainability challenges and opportunities. investments to support ESG program included in our ERM process since at least deliverables and reviews progress toward 2018, we expanded our enterprise risk portfolio ESG Advisory goals and key performance indicators to reflect ESG as a standalone risk beginning Committee (KPIs) relevant to our global ESG and in 2021. We further expanded our portfolio sustainability programs. in 2022 to include human capital as well as Established in 2021, this group of executive 5 climate and environment as enterprise-level team members and senior leaders meets Global 2 women risks along with ESG. bimonthly to review ESG strategic direction Sustainability Team people For more information on our Board committees, and delivery, governance and proposed of color ESG oversight and responsibilities and ESG-related investments. The committee Led by our Vice President of Global approach to executive compensation, see our reviews and provides input on key decisions Sustainability and Corporate 2022 Proxy Statement. related to our global ESG and sustainability Communications, this team is composed The Board of Directors oversees our strategies, programs, including review of enhanced of ESG experts and leaders from across including our holistic ESG strategy — our Shared Governing ESG at Hershey disclosures and policy changes. the business who manage the strategy, Goodness Promise, all significant decisions and implementation and reporting of our global business performance. This includes compliance Our ESG and sustainability governance model Disclosure ESG and sustainability initiatives. The with legal and regulatory requirements, our includes a multi-level operating structure to Committee Global Sustainability team communicates Enterprise Risk Management (ERM) program ensure we are aligned on the most important regularly with external stakeholders who and the key risks it identifies, the integrity of our issues facing the company and allocating In 2021, Hershey expanded its Disclosure provide valuable perspectives on our financial statements and the management of resources to drive progress within our Shared Committee to include the Vice President program decisions and focus. succession planning and compensation policies. Goodness Promise. Accountability for of Global Sustainability and Corporate The Board committees conduct in-depth managing ESG and sustainability resides with Communications to ensure consistent reviews of significant issues to help manage the Vice President of Global Sustainability and disclosures across the company’s financial these responsibilities. Corporate Communications, who reports to and ESG reporting. our Chief Supply Chain Officer. 1 Data current as of December 2021.