50 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 Reducing Value Chain Emissions Addressing land use is a significant part of our In both sugar and dairy, we are incorporating America with exposure to high-emitting More than 96% of our total GHG emissions climate action plans and we have committed our climate efforts into new responsible agricultural commodities. are from Scope 3 in our extended value chain. to eliminating commodity-driven deforestation sourcing programs. For example, our dairy Hershey was one of only three companies on Cocoa, dairy, sugar, packaging and logistics from all our ingredient supply chains by 2030. operations are conducting a pilot with our The Food Emissions 50 Company Benchmark represent the areas where we see the greatest As part of this initiative, we are partnering with supplier Land O’Lakes and the Alliance list that has developed both emissions opportunities for emissions reductions. In our suppliers to drive improvements throughout for the Chesapeake Bay to make on-farm disclosure and emissions reduction targets. each of these priority areas, we are identifying the entire supply chain. Our commitment to improvements to reduce emissions and improve We were also listed as one of fewer than 20 opportunities, engaging in multi-stakeholder sourcing only 100% independently verified waterways in the Pennsylvania area. Many companies that report on land-use change as planning, implementing meaningful actions cocoa and to 100% sourcing visibility in Côte of the sustainable agriculture projects have part of disclosing Scope 3 emissions. toward our targets and advancing sustainability d’Ivoire and Ghana by 2025 supports our co-benefits beyond carbon and water, such as within our value chain. efforts in building long-term relationships with encouraging the adoption of farming practices For data related to our Scope 1, 2 known farmer groups, providing resources and that promote biodiversity and soil health. and 3 GHG emissions, see page 57. A large portion of our baseline Scope 3 education on sustainable farming and driving In 2021, we were assessed by Ceres as part emissions are due to land-use change from traceability to halt deforestation. of the 50 largest food companies in North the farm-level production of our ingredients. Scope 1: Scope 2: 2.64% 1.11% Direct emissions from owned or controlled Indirect emissions from purchased sources such as natural gas power, steam, heating and cooling OUR 2021 EMISSIONS Scope 3: BREAKDOWN BY SCOPE 96.25% (METRIC TONS CO e) All other indirect emissions occurring in our value chain: 2 66.98% Agriculture (includes 0.84% Business travel/employee land-use change) commuting 12.48% Logistics 3.99% Co-manufacturers 6.76% Packaging and 0.51% Fuel packaging waste 0.20% Food waste 3+1+96+D 4.36% Specialty 0.14% Waste from operations