Hershey CSR Scorecard Shows Continued Progress on Key Sustainability Initiatives

HERSHEY, Pa., April 22, 2013 /3BL Media/ ─ The Hershey Company (NYSE: HSY) today issued its CSR Scorecard, providing progress on a range of sustainability programs and new initiatives. The scorecard shows substantial progress and achievements since the company issued its last full CSR Report on April 30, 2012.

“We are proud of our strong track record of corporate citizenship and our ongoing commitment to the environment, our communities and the people all along the supply chain who help us make our great products,” said John P. Bilbrey, President and Chief Executive Officer, The Hershey Company.  “Our commitment to citizenship is fundamental to our business strategy and global growth and we continue to make progress on all fronts.  We are continuing the legacy of our founder, Milton Hershey, who believed that it was the company’s obligation to ‘do well by doing good’ in society.”

The latest Hershey CSR scorecard is organized around programs and initiatives in four key areas of social responsibility: Marketplace, Environment, Workplace and Community. The complete scorecard is available online in the CSR section of the company’s website at:  http://www.thehersheycompany.com/social-responsibility.aspx

Strong Progress Against All Sustainability Targets

Hershey is on track to meet or exceed all of its 2015 sustainability targets established in the company‘s last full CSR Report. The company has already completed some of its 2015 targets or will complete them well ahead of 2015. For example, the company has achieved its 2015 goal for Zero Waste to Landfill manufacturing facilities this year, more than two years ahead of schedule.  In addition, the company will reach its 2015 target to use 100 percent certified sustainable palm oil more than a year ahead of plan.

 Hershey’s accomplishments span across a broad range of programs, new initiatives and sustainability goals.  Some of the achievements include:

• Hershey’s 21^st Century Cocoa Plan – Hershey created a roadmap for how the company will work to help cocoa communities around the world grow sustainable cocoa for the next century, expected to directly impact 750,000 cocoa farmers and indirectly benefit more than two million West Africans.
• 100 Percent Certified Cocoa Commitment – Hershey pledged to source 100 percent third-party certified cocoa for all of its chocolate products worldwide by 2020. This included moving to 100 percent certified cocoa for the Scharffen Berger brand by end of 2013 and for the Hershey’s Bliss chocolate brand in 2012. Hershey has since committed to achieving 10 percent third-party certified by the end of 2013 and 40-50 percent in 2016.
• Sustainable Palm Oil – In 2011, Hershey committed to purchasing 100% Roundtable on Sustainable Palm Oil (RSPO) certified palm oil, provided availability of supply, by 2015. In an effort to reduce Hershey’s impact on sensitive rainforests and other natural resources, the company is accelerating its plans and all palm oil purchased by the company will be RSPO certified by the beginning of 2014, one year earlier than its original commitment.  RSPO is the leading standard for responsible production of palm oil.
• Project Peanut Butter – Hershey is funding a manufacturing plant in Ghana through a U.S.-based NGO to make and distribute vitamin-enriched nutritional packets to save the lives of malnourished children in rural Ghana.
• Zero Waste to Landfill (ZWL) Manufacturing – Hershey has increased the number of manufacturing plants that have achieved ZWL status to five: Reese and West Hershey (both Hershey, Pa.); Lancaster, Pa.; Hazleton, Pa.; and Stuarts Draft, Va., meeting the company’s 2015 goal.  The company continues to work towards ZWL status at additional plants. The company’s East Coast Distribution Center and Hershey’s Chocolate World Attraction have also achieved ZWL status, bringing to seven the total number of Hershey facilities operating as ZWL. 
• Reduced Water Usage – Hershey has cut its normalized water consumption in manufacturing operations by 58 percentage points from 2009 to 2012. This substantial reduction was the result of a large cross-functional effort to conserve water and conduct third-party audits of water use. The audits led to installation of water conservation measures, combined with the transfer of manufacturing from the 19 East plant to the highly water-efficient West Hershey plant.  
• Workplace Safety – Hershey’s focus on increasing workplace safety has resulted in a consistent reduction in its incident rate to its lowest rate in the last nine years. The total recordable incidence rate has decreased each year for more than five years.
• Record Volunteerism – Hershey employees are actively engaged in the community and with important causes that benefit communities.  Hershey employees around the globe volunteered more than 200,000 hours with causes such as Habitat for Humanity and the Ronald McDonald House, a record level of volunteerism for the company. 
• Manufacturing Apprenticeship Program – Hershey created an innovative program that provides employment opportunities for individuals with intellectual and physical disabilities.  The program was launched in 2012 at the company’s Y&S Lancaster Plant and is expanding to other facilities in 2013.

External Recognition

The Hershey Company’s substantial corporate citizenship programs and initiatives have earned the company external and industry recognition over the past year.  For example:    

• Dow Jones Sustainability Index – Hershey was selected for inclusion in the prestigious Dow Jones Sustainability Index, one of seven North American food & beverage companies in the 2012 index.
• America’s 100 Best Corporate Citizens – Hershey was named to America’s 100 Best Corporate Citizens list by Corporate Responsibility Magazine in 2013.
• Newsweek Green Rankings – Moved up 172 spots in the 2012 Newsweek Green Rankings; No. 7 in the Food and Beverage peer set (up from No. 20 in 2011).
• Bloomberg Civic 50 – Hershey was named to the Bloomberg Civic 50 list (No. 29) for the most community-minded companies in America. Hershey was the only confectionary company and the second highest ranked CPG company on this year’s list.
• Carbon Disclosure Report – Hershey improved its Carbon Disclosure score from 67 in 2011 to 80 in 2012.

Hershey’s also has elevated its transparency in CSR reporting in the last two years using the Global Reporting Initiative’s standard that gives companies and organizations a common framework to measure and report on sustainability performance. Hershey’s full CSR report issued last year attained the GRI B+ transparency level compared to the company’s first report, which was at the C level. This year’s scorecard continues the commitment to transparency and provides updates on the many disclosures included in last year’s report.     

About The Hershey Company

The Hershey Company (NYSE: HSY) is the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery. Headquartered in Hershey, Pa., The Hershey Company has operations throughout the world and approximately 14,000 employees. With revenues of more than $6.6 billion, Hershey offers confectionery products under more than 80 brand names, including such iconic brands as Hershey's, Reese's, Hershey's Kisses, Hershey's Bliss, Hershey's Special Dark, Kit Kat, Twizzlers, Jolly Rancher and Ice Breakers. The company is focused on growing its presence in key international markets such as China, Mexico and Brazil while continuing to build its competitive advantage in the United States and Canada.

For more than 100 years, The Hershey Company has been a leader in making a positive difference in the communities where its employees live, work and do business. Corporate Social Responsibility is an integral part of the company’s global business strategy, which includes goals and priorities focused on fair and ethical business dealings, environmental stewardship, fostering a desirable workplace for employees, and positively impacting society and local communities. Milton Hershey School, established in 1909 by the company's founder and funded by a trust administered by Hershey Trust Company, provides a quality education, housing, and medical care at no cost to children in social and financial need. Students of Milton Hershey School are direct beneficiaries of The Hershey Company's success.

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