The Hershey Company

Hershey has conducted a TCFD-aligned climate scenario analysis, incorporating three scenarios, including a below 2C scenario, which included the physical risks to its animal agriculture supply chains, such as dairy and the transition risk of consumers seeking more plant-based and sustainable treats.

Hershey has disclosed a full breakdown of its Scope 3 emissions from animal agriculture, reporting that dairy accounts for 26% of emissions from sourcing and ingredients emissions. With sourcing and ingredient emissions equaling 77% of the company's total emissions, FAIRR calculates that dairy equals 20.02% of Hershey's total emissions.

Hershey has set a Science Based Targets initiative (SBTi)-approved goal to reduce its Scope 3 Forest, Land, and Agriculture (FLAG) emissions by 36.4% by 2030, using a 2018 baseline.

The Hershey company does not integrate protein diversification as a climate mitigation lever in its disclosures, and provides no emissions- or finance-related data linked to this strategy.

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.

The company does not have a protein diversification target.

The company does not have a protein diversification target.

The company does not have a protein diversification target and therefore does not report progress against such a target.

The company does not have a protein diversification target and therefore does not report annual progress against such a target.

The Hershey Company has stated that its annual executive compensation is linked to its overall ESG performance but has not specified which ESG metrics and targets its executives must meet to achieve to qualify for total annual payout.

The Hershey Company states that several board members possess skills, qualifications, and experience in "ESG & human capital", however, it does not clarify whether any members have specific technical expertise in climate risk or sustainability.

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

The Hershey Company has provided a list of its public policy positions, however, the company has stated that it does not use corporate funds to directly support political candidates or campaigns, despite, allocating funds to support or advocate for certain issues, legislation, or referenda, through its political action committee. Through this committee the company has only disclosed its support for political candidates and not policy topics.

The company has not disclosed lobbying actions aligned to positive climate or nutrition outcomes.

The Hershey company discloses a list of its memberships and partnerships to which it is involved with.

Hershey's disclosures do not clearly indicate whether the company has assessed the alignment of its affiliated lobbying activities with positive climate and nutrition outcomes. However, the company’s environmental partnerships suggest it is actively advocating for positive climate impacts. The company has not disclosed an assessment of alignment of these memberships or plans to address misalignment if they arise.

Hershey has made a public commitment to Just Transition principles in its Human Rights Policy, acknowledging the climate's impact on vulnerable communities. However, the company does not specifically mention its animal agriculture supply chains.

Hershey's continues to provide training to its workers on salient human rights topics including the impacts of climate change and deforestation of its business. It is unclear if this training is provided specifically to animal agricultural workers. As of 2024, the company partnered with Verité to deliver this training to its procurement teams and offer a number of other online trainings in multiple languages.

Hershey's is supporting its dairy suppliers adopt more sustainable practices through its collaborative three-year pilot program with Land O'Lakes, the company's highest dairy suppliers by volume, and the Alliance for the Chesapeake Bay. Over the last year, the company has planted over 3,000 trees to act as a riparian buffer, safeguarding waterways against nutrient pollution and sediment run off. The company has also provided three farms with compost facilities to reduce manure run-off, and is also piloting methane-reducing feed additives.

The Hershey Company does not have a standalone Just Transition strategy but has incorporated the concept of Just Transition within its broader Human Rights Policy.

The Hershey Company conducts annual engagement surveys with workers and farmers, however, it remains unclear how the insights from these surveys are being used to support stakeholders in transitioning to more sustainable practices.

The Hershey Company does not have have a Just Transition Strategy and therefore does not have KPIs linked to such a strategy.

The Hershey Company does not have have a Just Transition Strategy and therefore does not have KPIs that are reported annually linked to such a strategy.

There is no evidence that The Hersey Company launched new plant-based products in the past year.

There is no evidence that The Hershey Company has allocated resource to improve the performance of alternative protein products in the past year.

The Hershey Company does not have a minimum health and nutrition requirement for its alternative protein source portfolio aligned with a government-endorsed nutrient profiling system. Although, the company measures revenue from products labeled and/or marketed to promote health and nutrition attributes.

There is no evidence that The Hershey Company is reformulating alternative protein products to improve nutrition attributes.

There is no evidence that The Hershey Company is reformulating alternative protein products to improve sustainability attributes.

There is no evidence that The Hershey Company has committed to marketing and merchandising strategies related to alternative proteins in its largest markets.

There is no evidence that The Hershey Company is marketing and merchandising alternative protein products in its largest markets.

There is no evidence that The Hershey Company is working to ensure its alternative protein source products are accessible and affordable in its largest markets.

The Hershey Company has conducted consumer research relating to demand for alternative protein sources, however, there is no evidence of research relating to consumer trends in the sector. The company leverages third-party consumer research to identify demand for alternative proteins, finding that the vegan chocolate market is expected to grow at a compound rate of 14.8% from 2021 to 2028.

The Hershey Company has used consumer research relating to healthy diets to inform its marketing and merchandising strategy for alternative protein sources. The company finds that a significant proportion of consumers are prioritising healthier lifestyles, as 71% value a healthy lifestyle, 78% see healthy eating as essential, and 62% are actively increasing protein intake. In response these consumer trends, the company expanded its product range to include plant-based alternatives like Hershey’s Plant Based Extra Creamy with Almonds & Sea Salt and Reese’s Plant Based Peanut Butter Cups.