22 The Hershey Company | 2021 ESG Report Cocoa The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Deeply Committed to Responsibly Sourcing Cocoa Hershey’s ability to live its By 2025, we aim to achieve 100% sourcing While Côte d’Ivoire and Ghana continue to purpose of Making More visibility in Côte d’Ivoire and Ghana by be the countries where the majority of our requiring that 100% of farmers producing programming is focused, in 2021 we continued Moments of Goodness Hershey’s cocoa volume in these implementing Cocoa For Good in Brazil, is supported by evolving countries are: Cameroon, Ecuador, Indonesia, Mexico • Polygon mapped by our suppliers to improve and Nigeria, increasing the number of farmers sustainability practices, traceability and monitor deforestation; and participating in programs as part of Cocoa For as well as input from, Good worldwide by 24%. • Covered by Child Labor Monitoring and and impact on, our Remediation Systems (CLMRS) to prevent, stakeholders. monitor and remediate child labor. Farmer groups and farmers participating in 68% As we deliver on our cocoa commitments, our Cocoa For Good strategy in Côte d’Ivoire sourcing visibility in we continue to evolve our ways of working, and Ghana together supply a significant Côte d’Ivoire and Ghana improve transparency for our key stakeholders amount of the cocoa we purchase worldwide. and provide consumers with robust assurances Clear visibility into how and under what about our products. We strive to create conditions the cocoa we source is grown and transparent and measurable policies that cultivated enables us to implement programs keep Hershey accountable to our goals, allow that focus on helping to improve farmer stakeholders to track our progress and create incomes, eliminate child labor and protect the alignment among our global teams. environment. Understanding the origin of cocoa is essential to ensure that it meets our human In line with our commitment to provide clarity rights and environmental requirements. around our specific cocoa sourcing initiatives, Responsibly sourcing cocoa and prioritizing our we have defined and provided additional human rights and environmental requirements context around our key priorities: requires collaboration between the public and 100% Independently Verified Cocoa private sectors including governments, our suppliers, farmers and manufacturers. All of our suppliers must agree to the Hershey Our commitment to improve farmer livelihoods Supplier Code of Conduct before delivering and incomes is unwavering, and we will continue cocoa to us. To continue to deliver on our to drive our requirements and evolve as we commitment of 100% independently verified learn to benefit farmers, their families and cocoa, which we achieved in 2020, we their communities. collaborate with third-party certifiers, including As of December 2021, we achieved 68% the Rainforest Alliance and Fair Trade USA, sourcing visibility of our cocoa volume as well as independently verified programs originating from Côte d’Ivoire and Ghana, through our suppliers. on track to reaching our 2025 commitment.