The Hershey Company

The company has conducted a TCFD-aligned climate risk scenario analysis under the IPCC’s RCP 2.6, 4.5, and 8.5 scenarios to understand the physical and transition risks for the business between 2020-2040. Hershey has included its dairy supply chains in this scenario analysis which is its primary animal protein commodity. The company has found that rising temperatures affecting milk production and droughts disrupting feed availability are physical risks for the company. Additionally, Hershey's mentions the transition risk of more consumers seeking plant-based products.

Hershey has disclosed a breakdown of its emissions across its entire value chain. The company reported that within its sourcing and ingredients category, which accounts for 80.1% of the company's value chain emissions, dairy contributes 18.8%. FAIRR calculates that dairy accounts for 15.1% of Hershey's entire value chain emissions.

The Hershey company has received approval for its 1.5C aligned SBTi targets for its FLAG emissions. The company has committed to reduce absolute Scope 3 FLAG emissions by 36.4% by 2030 from a 2018 base year. Hershey's has also committed to no deforestation across its primary deforestation-linked commodities by 2025.

The Hershey Company has not recognised the financial opportunity or climate mitigation potential of protein diversification, despite the company including it in its scenario risk analysis.

There is no evidence that the company is strategically integrating protein diversification into its climate transition plan.

The company does not have a protein diversification target.

There is no evidence for this KPI.

There is no evidence for this KPI.

The Hershey Company does not have a protein diversification target and therefore does not disclose progress against such a target.

There is no evidence for this KPI.

The Hershey Company does not have a protein diversification target and therefore cannot disclose evidence of board-level support for protein diversification

The Hershey Company discloses that 63.6% of its board have skills, qualifications and backgrounds in ESG, but did not specify if the company's board has specific technical expertise relating to climate.

None of the board members have expertise in nutrition/health.

The Hershey Company stated that it does not use corporate funds to support political candidates or campaigns directly or indirectly, but does use funds to support or advocate for issues, legislation, or referenda. The company did not disclose what these issues, legislation or referenda are.

There is no evidence for this KPI.

The Hershey company disclosed that it is a member of four trade associations and that it has 72 environmental partnerships.

It is unclear from Hershey's disclosure if the company has conducted an assessment of whether its lobbying of affiliate organisations is aligned with positive climate and nutrition outcomes. However, through the company's environmental partnerships, it is advocating for positive climate outcomes.

The Hershey Company has recognised the importance of a Just Transition and has included this concept in its updated human rights framework.

The Hershey Company since 2020 has provided training to 1,600 of its employees on the "salient" human rights issues the company has identified. These salient issues include how the company can build long-term resilience across its workers from climate and nature impacts. However, it is unclear the extent this training covers climate and nature impacts related to the company's dairy supply chains.

The Hershey Company is working with Land O’Lakes, its largest dairy supplier by volume, and the Alliance for the Chesapeake Bay to reduce emissions and protect water quality for dairy farmers in Pennsylvania. The company has invested $1 million to trail hedgerows, nutrient management, conservation tillage, and other pilot measures, and will also begin implementing manure management practices. This program is growing from a pilot to a two-year scale-up phase co-financed by the U.S. Environmental Protection Agency.

The Hershey Company does not have a stand alone Just Transition strategy and has instead embedded to concept of the Just Transition within its Human Rights Agenda.

The Hershey Company annually conducts worker and farmer engagement surveys, however, it is unclear how the company is using these findings to support key stakeholders in transitioning to more sustainable practices.

There is no evidence for this KPI.

There is no evidence for this KPI.

The company has introduced plant-based alternatives for its renowned Hershey's and Reese's brands, catering to the growing demand for dairy-free snacks. The latest products are Hershey's Plant-Based Extra Creamy with Almonds and Sea Salt, and Reese's Plant-Based Peanut Butter Cups.

There is no evidence for this KPI.

There is no evidence for this KPI.

The Hershey Company has formulated several of its plant-based products with improved nutritional attributes, such as its Lily's Peanut Butter Flavor Chips that have no added sugar, and its Reese's Zero Sugar Peanut Butter Chips which are free from artificial preservatives and colors.

The company does not provide evidence of (re)formulation of products with improved sustainability attributes.

In 2021, The Hershey Company launched its better-for-you confection strategy which includes some plant-based products, however, the company is marketing these products as part of its health goals and has not explicitly committed to developing and delivering marketing and merchandising strategies related to alternative protein sources.

There is no evidence for this KPI.

The Hershey Company is marketing its Lily's Peanut Butter Flavor Chips as having no added sugar and its Reese's Zero Sugar Peanut Butter Chips as being free from artificial preservatives and colors. Although, the company also promotes the nutritional benefits of its products through 'Smart Labels', it is unclear how many plant-based products this label covers.

The company does not promote the sustainability attributes of alternative protein sources.

The Hershey Company has used third party research to understand that the vegan chocolate market is expected to grow at a compound rate of 14.8% from 2021 to 2028.

Through consumer research, the Hershey Company found that: 78% of consumers believe that healthy diets are an important factor in overall health; 70% of consumers are trying to reduce their sugar intake; and 62% of consumers are looking to add protein to their diet. The company responded to this consumer research by launching its better-for-you confection strategy. An element of this strategy includes growing its plant-based portfolio.