Hershey : 2020 GRI REPORT

GOODNESS IN ACTION

2020 GRI REPORT

GENERAL DISCLOSURES

ECONOMIC DISCLOSURES

ENVIRONMENTAL DISCLOSURES

SOCIAL DISCLOSURES

MATERIAL ISSUES ACROSS OUR VALUE CHAIN

APPENDIX

2020 GRI REPORT

The data in this report relates to the period from January to December 2020, unless otherwise stated. For a detailed explanation of the indicators, visit

the GRI website: globalreporting.org. This content report accompanies our 2020 Sustainability Report and has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Comprehensive option. All standards are the 2016 version unless otherwise noted. Based on the revised 2020 materiality assessment, Hershey's is now reporting on GRI 304: Biodiversity 2016.

THE HERSHEY COMPANY | 2020 GRI CONTENT INDEX

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GENERAL DISCLOSURES

ECONOMIC DISCLOSURES

ENVIRONMENTAL DISCLOSURES

SOCIAL DISCLOSURES

MATERIAL ISSUES ACROSS OUR VALUE CHAIN

APPENDIX

GRI Standard	Reference	GRI Disclosure	2020 Hershey Response
General Disclosures
Organizational Profile	102-1	Name of the organization	The Hershey Company
		102-2	Activities, brands, products,	The Big Picture p. 8
			and services	Responsible Growth p. 14
				2020 Form10-KPDF pp. 3-6
				We are not aware of any of our products being banned in any markets where we operate and distribute.
		102-3	Location of headquarters	19 East Chocolate Avenue, Hershey, PA 17033
		102-4	Location of operations	2020 Form10-KPDF pp. 4, 5, 7, 17, 115
				Responsible Growth: Where We Source Our Ingredients p. 27
		102-5	Ownership and legal form	2020 Form10-KPDF p. 4
		102-6	Markets served	2020 Form10-KPDF pp. 4-8
		102-7	Scale of the organization	Our Performance pp. 8-12
				2020 Form10-KPDF pp. 4, 8, 21, 25, 54
		102-8	Information on employees	Our Performance pp. 8-12
			and other workers	2020 Form10-KPDF p. 8
				See GRI Appendix 102-8 p. 39
				We do not have a significant portion of activities performed by workers who are not employees.
				There are not significant variations in the numbers reported in Disclosures 102-8-a,102-8-b and 102-8-c.
				Our Human Resources analytics team manages employment data and is able to calculate these metrics.
		102-9	Supply chain	2020 Form10-KPDF pp. 5-6
				Responsible Growth pp. 18-44
		102-10	Significant changes to	2020 Form10-KPDF pp. 4-5,23-25,63-64
			the organization and its
			supply chain
		102-11	Precautionary Principle	2020 Proxy Statement: Board Role in Risk Oversightp. 21
			or approach
		102-12	External initiatives	Hershey is part of the following sustainability-related initiatives: AIM-PROGRESS, Bonsucro, CEO Action for Diversity &
				Inclusion™, Paradigm for Parity, Ceres Company Network, Cocoa & Forests Initiative, Cocoa Livelihoods Program, Dairy
				Sustainability Framework, Fair Trade USA, Innovation Center for U.S. Dairy's Sustainability Alliance, International Cocoa
				Initiative, National Organization on Disability's Look Closer national hiring campaign, People + Work Connect platform,
				Rainforest Alliance, Responsible Labor Initiative, Roundtable on Sustainable Palm Oil (RSPO), Sustainable Agriculture Initiative
				(SAI) Platform, United Nations Global Compact and the World Cocoa Foundation.
		102-13	Membership of associations	See GRI Appendix 102-13 p. 40
Strategy	102-14	Statement from senior	The Big Picture: A Message from Michele Buck p. 5
			decision-maker
		102-15	Key impacts, risks,	The Big Picture: A Message from Michele Buck p. 5
			and opportunities	The Big Picture: Stepping Up in 2020 - Our Response to a Unique Year p. 6
				Governance and Approach: Materiality p. 15
				2020 Form10-KPDF pp. 10-16

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GENERAL DISCLOSURES

ECONOMIC DISCLOSURES

ENVIRONMENTAL DISCLOSURES

SOCIAL DISCLOSURES

MATERIAL ISSUES ACROSS OUR VALUE CHAIN

APPENDIX

GRI Standard	Reference	GRI Disclosure	2020 Hershey Response
Ethics and integrity	102-16	Values, principles, standards,	Hershey Code of Conduct
		and norms of behavior	Hershey Supplier Code of Conduct
			Governance and Approach: Being a Responsible and Ethical Business p. 14
	102-17	Mechanisms for advice and	Governance and Approach: Being a Responsible and Ethical Business p. 14
		concerns about ethics	Hershey Code of Conductp. 8
			Hershey Concern Line
			Compliance Complaints
			Corporate Governance
Governance	102-18	Governance structure	Governance and Approach: Being a Responsible and Ethical Business p. 14
			2020 Proxy Statementp. 19
			Corporate Governance
			Board of Directors
			Committees & Charters
	102-19	Delegating authority	Governance and Approach: Being a Responsible and Ethical Business p. 14
			Corporate Governance
	102-20	Executive-level responsibility	Governance and Approach: Being a Responsible and Ethical Business p. 14
		for economic, environmental,	The Chief Supply Chain Officer has overall responsibility for the Sustainability program and is supported by the Vice President
		and social topics
		of Corporate Communications and Global Sustainability. The Chief Supply Chain Officer reports to the CEO and provides

updates to the Board on our sustainability programs.

102-21	Consulting stakeholders on
	economic, environmental,
	and social topics

Governance and Approach: Being a Responsible and Ethical Business p. 14

Proxy Statement, Stockholder and Interested Party Communications with Directors, PDF pp. 16-17

Our Board of Directors hears from external stakeholders through our executive management team, or specific stakeholders brief the Board directly. The Sustainability Team, led by the Vice President of Corporate Communications and Global Sustainability, briefs the full Board on ESG issues at minimum once per year and as other topical discussions are needed. Other ESG issues such as discussing our employee engagement survey findings and sourcing activities in West Africa are also separate yearly topics for the full Board.

102-22	Composition of the highest	Proxy Statement, Our Director Nominees Matrix and Governance HighlightsPDF p. 2-5
	governance body and	Governance and Approach p. 10
	its committees	Our Performance pp. 8-12
		Board of Directors
102-23	Chair of the highest	Michele Buck is the Chairman of the Board, President and Chief Executive Officer for The Hershey Company. Ms. Buck is
	governance body	responsible for all day-to-day global operations and commercial activities of the Company. Having served at the Company for
		more than 15 years and as an executive in the consumer-packaged goods industry for more than 30 years, Ms. Buck is a valuable
		contributor to the Board in the areas of marketing, consumer products, strategy, supply chain management and mergers
		and acquisitions. Her presence in the boardroom also ensures efficient communication between the Board and Company
		management.
		Board of Directors
102-24	Nominating and selecting the	Governance Committee Charter
	highest governance body	Corporate Governance Guidelinespp. 2-5
		Proxy Statement, Experience, Skills and Qualifications
102-25	Conflicts of interest	Corporate Governance Guidelinespp. 10
		Code of ConductPDF p. 26
		Related Person Transaction Policy

THE HERSHEY COMPANY | 2020 GRI REPORT

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GENERAL DISCLOSURES

ECONOMIC DISCLOSURES

ENVIRONMENTAL DISCLOSURES

SOCIAL DISCLOSURES

MATERIAL ISSUES ACROSS OUR VALUE CHAIN

APPENDIX

GRI Standard

Reference GRI Disclosure

2020 Hershey Response

Governance	102-26	Role of highest governance
		body in setting purpose,
		values, and strategy

Governance and Approach: Being a Responsible and Ethical Business p. 14 Corporate Governance Guidelinespp. 2, 6, 8

102-27	Collective knowledge of	Corporate Governance Guidelines p. 8, Ongoing Education
	highest governance body	Governance and Approach: Being a Responsible and Ethical Business p. 14.
102-28	Evaluating the highest	Members of our Board of Directors were not evaluated with respect to the Shared Goodness Promise strategy in 2020.
	governance body's
	performance
102-29	Identifying and managing	Governance and Approach: Being a Responsible and Ethical Business p. 14
	economic, environmental,	Our materiality and saliency assessments inform our Shared Goodness Promise strategy and include input from external
	and social impacts
	stakeholders. In 2020, we also conducted an ESG Investor Perception study, the results of which were shared with the
		Executive Committee and Board.
		Corporate Governance Guidelines
		TCFD Report
102-30	Effectiveness of risk	The Finance & Risk Management Committee reviews Hershey's management of all types of risks including economic, social
	management processes	and environmental.
		Corporate Governance Guidelines
		Finance and Risk Management Committee Charter
102-31	Review of economic,	Governance and Approach: Being a Responsible and Ethical Business p. 14
	environmental, and
	social topics
102-32	Highest governance body's	Michele Buck reviews and approves the Shared Goodness Promise Report and the material topics covered.
	role in sustainability reporting
102-33	Communicating critical	Governance and Approach: Being a Responsible and Ethical Business p. 14
	concerns	Proxy Statement, Stockholder and Interested Party Communications with Directorsp. 17
102-34	Nature and total number of	In 2020, Hershey recorded four cases that were deemed significant or "critical." The four "critical" concerns were reported to
	critical concerns	the Ethical Business Practices Committee (EBPC) and the Audit Committee pursuant to our policies and procedures.
		Compliance concerns are reported through various channels, including but not limited to: Hershey's Concern Line, business
		partners, HR, Ethics and Compliance, and other parties who have access to either the Concern Line or the Ethics and
		Compliance department. All concerns are managed and followed closely by the Ethics and Compliance department.
		Hershey applies severity codes to cases depending on certain parameters such as violation, potential fines and/or involvement of
		senior leaders. All concerns given a severity code of Red or Orange are considered "critical." Concerns given a Yellow or Green
		code are considered "not significant." Red and Orange matters are reported to the EBPC and Audit Committee for visibility.
		Issues reported to the Concern Line cover a wide array of topics, including conflicts of interest, general labor practices,
		employment-related concerns, potential fraud, security and requests for general advice.
102-35	Remuneration policies	Corporate Governance Guidelinesp. 9
		Proxy Statement, Executive Compensation Highlights p. 6, Non-Employee Director Compensation pp. 34-38, Compensation
		Discussion and Analysis pp. 46-84

The performance criteria in our remuneration policies for the Board of Directors does not currently include objectives for environmental or social topics. Hershey's CEO's yearly performance and compensation encompasses overall Company results, with sustainability-specific KPIs focused on Hershey's climate/greenhouse gas (GHG) metrics and our Packaging Sustainability and Cocoa Sustainability programs.

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