Hershey Releases 2023 ESG Report

Rhea-AI Summary

Hershey (NYSE: HSY) has released its 2023 Environmental, Social, and Governance (ESG) Report, detailing progress and future ambitions across six sustainability priorities: cocoa, responsible sourcing, environment, people, youth, and community. Key achievements include the launch of the Hershey Income Accelerator Program, investments in children's education, and a new human rights framework. Hershey also reported significant strides in climate action, achieving a 43% reduction in Scope 1 and 2 greenhouse gas emissions since 2018, and reducing packaging waste by over 1.7 million pounds in 2023. Additionally, Hershey has made efforts to foster workplace innovation and growth, including a new leadership development program and initiatives to increase veteran hiring. The company aims to drive long-term business resilience and sustainability through these actions.

Positive

• 43% reduction in Scope 1 and 2 emissions from 2018 baseline.
• 1.7 million pounds of packaging material eliminated, redesigned, or reduced.
• $500 million Cocoa For Good strategy, with 51% already invested.
• 1,850 cocoa farmers reached with cash transfers for sustainable farming.
• Construction of 12 primary schools in Côte d'Ivoire, with the first school opened.
• New leadership development pilot program launched.
• Pay transparency procedures implemented for salaried employees.
• Exceeded veteran recruitment targets.

Negative

• No specific financial metrics or revenue impacts provided.
• The report highlights ongoing challenges and admits more efforts are required on the sustainability journey.

Outlines Progress and Future Ambitions Across its Sustainability Priorities

HERSHEY, Pa., June 4, 2024 /PRNewswire/ -- Hershey (NYSE: HSY) today announced the release of its 2023 Environmental, Social and Governance (ESG) Report, sharing progress towards business resilience and impact in its material priorities.  The report outlines how the company is implementing its global sustainability strategy across its six priority areas – cocoa, responsible sourcing and human rights, environment, people, youth and community. Hershey is working toward its vision to become a Leading Snacking Powerhouse, and the company's responsible and sustainable practices play an integral role in its business.

"Hershey remains focused on strengthening our business and making the biggest impact in our focus areas," said Michele Buck, CEO of The Hershey Company. "While we have more to do on this journey, the collective efforts of our team, in partnership with leading organizations and key stakeholders, will continue to propel us forward. Our actions and progress are aimed at driving long-term resiliency for our business, sustainability for our planet and the well-being of our people."

Building more resilient and sustainable supply chains
Hershey's Cocoa For Good strategy, underpinned with a $500 million investment, includes initiatives to create a supply chain where farmers, and their children and families, can prosper. Today, Hershey has invested 51% of that commitment. Achievements include:

• Improving farmer income and livelihoods: The Hershey Income Accelerator Program (HIAP) was launched in spring of 2023, and the company has reached 1,850 cocoa farmers with first cash transfers for the adoption of sustainable farming practices.
• Investing in children's well-being: Hershey made investments to improve education infrastructure, provide school nutrition, deliver school supplies and help children obtain birth certificates. As part of an agreement with the Côte d'Ivoire's CNS (National Oversight Committee of Actions Against Child Trafficking, Exploitation and Child Labor) and the International Cocoa Initiative (ICI), Hershey is funding construction of 12 primary schools in cocoa-producing communities. The first school opened in Drissapé, Côte d'Ivoire in December 2023.
• Launching a new human rights framework: Hershey's new human rights framework, the Human Rights Impact Pathway, was developed to guide the company's future programming to address the most complex issues and drive systemic improvements that remove barriers to basic human rights.

Acting on climate change and reducing waste for business resiliency
Across its global operations, Hershey took actions to safeguard the planet, expanding efforts to reduce emissions in its value chain while advancing nature-based projects to combat climate change. Progress updates from 2023 include:

• Minimizing greenhouse gas emissions: The company achieved a 43% reduction in Scope 1 and 2 emissions against a 2018 baseline and is on track to achieve a 50% absolute reduction by 2030.
• Eliminating packaging waste and improving circularity: Hershey phased out more than 1.7 million pounds of material by eliminating, redesigning and reducing packaging in 2023.
• Accelerating deforestation commitments: Recognizing the immediacy of climate change, the company accelerated the end date for its deforestation and conversion-free commitment from 2030 to 2025.
• Reducing water usage: The company achieved a 20% absolute reduction in combined water use across all facilities since 2022, which includes a 46% reduction at corporate headquarters.

Fostering togetherness in the workplace to advance innovation and business growth
Hershey's people-focused programs help advance innovation, business growth and create a strong and fair company culture.  Such initiatives include:

• Strengthening the talent pipeline: Hershey developed a new leadership development pilot program called the LSP Leader Accelerator to further improve how the company feeds the talent pipeline and develops talent from within.
• Providing transparency on pay: The company implemented pay transparency procedures for each salaried employee's Annual Compensation Statement including metrics to illustrate how base salary is positioned in the external marketplace and earning potential for their current job.
• Hiring veterans: As part of their Pathways to JOIN, REACH OUT and GROW framework to draw a wider range of people to work with Hershey, the company exceeded their target to recruit more veterans and expanded data disclosed on recruitment.

About The Hershey Company

The Hershey Company is an industry-leading snacks company known for making more moments of goodness through its iconic brands, remarkable people and enduring commitment to doing the right thing for its people, planet, and communities. Hershey has more than 20,000 employees in the U.S. and worldwide who work daily to deliver delicious, high-quality products. The company has more than 90 brand names in approximately 80 countries that drive more than $11.2 billion in annual revenues, including Hershey's, Reese's, Kisses, Kit Kat®, Jolly Rancher, Twizzlers and Ice Breakers, and salty snacks including SkinnyPop, Pirate's Booty and Dot's Homestyle Pretzels.

For 130 years, Hershey has been committed to operating fairly, ethically and sustainably. The candy and snack maker's founder, Milton Hershey, created Milton Hershey School in 1909, and since then, the company has focused on helping children succeed through equitable access to education.

To learn more visit www.thehersheycompany.com.

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SOURCE The Hershey Company

FAQ

What are the key achievements in Hershey's 2023 ESG report?

Key achievements include a 43% reduction in greenhouse gas emissions, elimination of 1.7 million pounds of packaging waste, and reaching 1,850 cocoa farmers with cash transfers.

What initiatives has Hershey undertaken for cocoa farmers in 2023?

Hershey launched the Hershey Income Accelerator Program, reaching 1,850 cocoa farmers with cash transfers for sustainable farming practices.

How is Hershey addressing climate change according to the 2023 ESG report?

Hershey reported a 43% reduction in Scope 1 and 2 emissions since 2018 and phased out more than 1.7 million pounds of packaging material in 2023.

What steps has Hershey taken to improve children's education in cocoa-producing communities?

Hershey funded the construction of 12 primary schools in Côte d'Ivoire, with the first school opening in December 2023.

What are Hershey's goals for reducing emissions?

Hershey aims to achieve a 50% absolute reduction in Scope 1 and 2 emissions by 2030.

What new programs has Hershey introduced for employee development?

Hershey launched the LSP Leader Accelerator program to improve leadership development and talent pipeline.

How is Hershey promoting pay transparency?

Hershey implemented pay transparency procedures for salaried employees, including detailed Annual Compensation Statements.

Did Hershey achieve its veteran hiring targets?

Yes, Hershey exceeded its targets for recruiting veterans.