Hershey reduces environmental impact across its value chain

Rhea-AI Summary

The Hershey Company (NYSE:HSY) continues to advance its climate action initiatives as announced on November 17, 2022, including a third utility-scale solar project, the Copperhead Solar & Storage Project in Texas, projected to generate $25 million in economic benefits over 25 years. Hershey aims to reduce Scope 1 and 2 emissions by 50% and Scope 3 by 25% by 2030, building on previous reductions of 48% and 18%, respectively. The company also invests $3 million in energy optimization, aiming to cut energy intensity by 10% in five years.

Positive

• Launch of Copperhead Solar & Storage Project expected to produce $25 million in economic impact over 25 years.
• Reduction of Scope 1 and 2 emissions by 48% and Scope 3 emissions by 18% against a 2018 baseline.
• Investment of $3 million in energy optimization to uncover additional savings.

Negative

• None.

Investments in solar energy equate to taking nearly 79,000 gas-powered vehicles off the road per year

HERSHEY, Pa., Nov. 17, 2022 /PRNewswire/ -- The Hershey Company (NYSE:HSY) is making measurable progress on its commitment to act on climate change. Recent initiatives include the launch of a third utility-scale solar project, energy and water optimization investments and continued progress addressing land use change. As stated in its 2021 ESG (Environmental, Social and Governance) Report, the candy and snack maker reduced its Scope 1 and 2 emissions by 48 percent and Scope 3 emissions by 18 percent against a 2018 baseline. As part of its science-based targets, Hershey aims to reduce Scope 1 and 2 emissions by 50 percent and Scope 3 by 25 percent by 2030.

Investing in Renewable Energy
Hershey and National Grid Renewables announced Hershey's 140-megawatt Power Purchase Agreement (PPA) for the Copperhead Solar & Storage Project in Falls County, Texas earlier this month. The project is expected to produce an estimated $25 million in direct economic impact throughout its first 25 years of operation, including the production of new tax revenue, onsite operations jobs and the creation of a charitable fund estimated at $600,000. This is Hershey's third solar PPA. The company's second project with National Grid Renewables, Noble Solar & Storage, is located in Denton County, Texas.

"Investment in renewable energy is pushing us closer to achieving our ambitious science-based targets," said Mark Kline, Director, Commodities & Specialty Procurement at The Hershey Company. "The impact of these three solar projects will be equal to taking nearly 79,000* gas-powered vehicles off the road per year."

Reducing Energy Intensity & Water Use
At the company's iconic headquarters in Hershey, Pa. and in manufacturing facilities around the world, a $3 million investment for energy optimization includes systems to report real-time utility usage data for electricity, natural gas and water. Most of these systems will be installed in U.S. facilities by the end of this year and in international facilities in 2023. In 2021, the company also invested nearly $1.5 million in high-efficient equipment and adjusted operating procedures to reduce well water usage. These recent environmental investments also help to reduce operating costs. 77 percent of the company's electricity consumption in 2021 was renewable or zero-emissions energy. The investment in real-time utility usage data is expected to uncover additional energy saving opportunities and help to reduce the company's energy intensity by approximately 10 percent over the next five years.

Fighting Deforestation with Climate-Smart Cocoa Practices
Addressing land use change is a significant part of Hershey's climate action plans. The company is committed to eliminating commodity-driven deforestation from its supply chain by 2030. Through its sustainable cocoa strategy, Cocoa For Good, the candy and snack maker supports cocoa farmers through education on income diversification and climate-smart cocoa practices as the risks of climate change loom large for communities in West Africa. In 2021, 41 percent of Cocoa For Good farmers in Côte d'Ivoire and Ghana were trained on climate-smart cocoa using a curriculum Hershey helped to develop alongside partners. 

Driving the Business through Acting on Climate Change
Doing the right thing for the environment is not only good for the planet, but good for business. In addition to reducing operating costs across Scope 1 and 2, minimizing environmental impact and restoring ecosystems preserves and strengthens resources while fostering sustainable agricultural communities for generations to come. Across its value chain, Hershey is extending its expertise and working with partners for the long-term success and resiliency of those reliant on its business and for the next generation.

"Solving daunting issues like the impacts of climate change requires cross-industry collaboration. We are committed to partnering with others to achieve the impact we strive for. We know we don't have all the answers and our work continues, but are proud of the progress made so far," said Leigh Horner, Vice President of Global Sustainability and Corporate Communications at The Hershey Company.

Learn more about the company's ESG commitments and progress in its 2021 ESG Report released earlier this year.

*Calculated using the United States Environmental Protection Agency's (EPA) greenhouse gas equivalencies calculator. This calculator uses marginal emissions rates.

About The Hershey Company

The Hershey Company is headquartered in Hershey, Pa., and is an industry-leading snacks company known for bringing goodness to the world through its iconic brands, remarkable people and enduring commitment to help children succeed. Hershey has approximately 19,000 employees around the world who work every day to deliver delicious, quality products. The company has more than 100 brand names in approximately 80 countries around the world that drive more than $8.9 billion in annual revenues, including such iconic brand names as Hershey's, Reese's, Kit Kat®, Jolly Rancher and Ice Breakers, and fast-growing salty snacks including SkinnyPop, Pirate's Booty and Dot's Homestyle Pretzels.

For more than 125 years, Hershey has been committed to operating fairly, ethically and sustainably.  Hershey founder, Milton Hershey, created Milton Hershey School in 1909 and since then the company has focused on helping children succeed.

To learn more visit www.thehersheycompany.com

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SOURCE The Hershey Company

FAQ

What is the Copperhead Solar & Storage Project related to Hershey (HSY)?

The Copperhead Solar & Storage Project is a 140-megawatt solar initiative in Texas expected to generate $25 million in economic impact over 25 years.

How much has Hershey reduced its Scope 1 and 2 emissions?

Hershey has reduced its Scope 1 and 2 emissions by 48% against a 2018 baseline.

What are Hershey's targets for emissions reduction by 2030?

Hershey aims to reduce Scope 1 and 2 emissions by 50% and Scope 3 emissions by 25% by 2030.

How much is Hershey investing in energy optimization?

Hershey is investing $3 million in energy optimization to enhance utility usage data reporting.

What percentage of Hershey's electricity consumption was renewable in 2021?

In 2021, 77% of Hershey's electricity consumption was renewable or zero-emissions energy.