Hershey Scorecard

Corporate soCial responsibility sCoreCard 2010 The Hershey Company 2010 Corporate Social Responsibility Scorecard outlines our progress in advancing the priorities we established in our 2009 Corporate Social Responsibility Report. We understand that operating a sustainable, competitive business requires a commitment to improving our economic, environmental, and social performance. This scorecard shows how we performed against the goals published in our 2009 CSR Report as well as against newer targets established to further advance our priorities.

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Within this scorecard, we use the following to indicate our progress: ?? ?? ?? ? ?? Achieved. We have met the target within or ahead of the time frame specified. On track. We expect to achieve the target within the time frame specified. Under development. We are working to further define this target. Needs improvement. We have made some progress but either lack sufficient data or have not progressed as we had expected toward achieving this target. ? We look forward to continuing to report on our performance, and we welcome your feedback.

To give us your comments, please visit http://www. thehersheycompany. com/contact-us. 1 The hershey Company CorporaTe soCial responsibiliTy sCoreCard 2010 http://www. ThehersheyCompany. com/social-responsibility Engage in fair and ethical business dealings through: integrity of supply Marketplace Target Issued the revised Supplier Code of Conduct to major suppliers in 2010 and all new suppliers on a goforward basis. 2010 progress •• •• Revised supplier Code of Conduct; issued revised code to key suppliers, translated it and posted it to our website to ensure global access.

Hershey’s Supplier Code of Conduct is now a contract term for all US purchase orders. http://www. thehersheycompany. com/hersheys-partners. aspx With partners World Cocoa Foundation and The Ghanaian Cocoa Board, developed CocoaLink, a mobile technology program to bring our farmer education program to cocoa farmers in Africa. Program launched March 2011. Promote partnerships with cocoa-sector companies, NGOs and governments to develop and implement agreed-to milestones to measure progress in sustainable cocoa farming by 2011. ••

The hershey Company, World Cocoa Foundation, and The Ghanaian Cocoa board mobile technology program consumer well-being Attain food safety certification recognized by the Global Food Safety Initiative at all our wholly owned manufacturing & JV Operations & contract manufacturing/ co-packing by 2012. Increase the number of Hershey’s Track & Field Games local track & field meets by 20% by 2013 (2008 baseline). Launch Moderation Nation in the US in 2010. •• • Seven of eleven Hershey-owned manufacturing facilities and our China joint venture attained GFSI certification.

Remaining Hershey facilities and Brazil and India joint ventures are on track for certification in 2011 and 2012, respectively. All major contract manufacturers expect to attain GFSI certification by year-end 2012. Increased number of local meets by 7% over 2009 and 27% over 2008, enabling more children in more communities to participate. Program launched; outreach exceeded expectations. Please visit the moderation nation website, http://sites. hersheys. com/ moderationnation/, for more details on the program. Continuing to develop programs that support customers’ CSR priorities. • •• •• •• •• • alignment with customers Hershey’s Track & Field Games program Develop programs that allow us to understand and anticipate customer program priorities. ?? ? ? = achieved ?? ? = on track ? ? = under development ? = needs improvement 2 The hershey Company CorporaTe soCial responsibiliTy sCoreCard 2010 http://www. ThehersheyCompany. com/social-responsibility Minimize environmental impact while meeting functional requirements through: product design sustainable sourcing efficient business operations Total Waste Water 2. 00 Million Cubic Meters nvironment Target Define and develop product design guidelines and tools, including measurement of impact, by 2012. Ensure that all palm oil procured will be certified, provided availability of supply, by 2015. Target developed following the 2009 CSR Report. Reduce GHG emissions by 15% by 2011 (US manufacturing, 2008 baseline). 2010 progress •• Developed and implemented labeling guidelines for communicating the recyclability of paper and corrugate packaging materials. •• • Will join the Roundtable on Sustainable Palm Oil in 2011. •• •

Reduced GHG emissions by 12% against 2008 baseline:* reduced electricity use through lighting efficiency, compressedair system improvements and HVAC enhancements; reduced natural gas consumption through biogas recovery, boiler stack economizer projects and boiler control efficiency projects. Reduced water use by 8% against 2008 baseline* through low-cost, plant-specific improvements and employee education. Completed water conservation studies*; evaluated and prioritized recommendations for reduction. Reduced waste generated by US manufacturing plants by 17. 4% from 2008 baseline.

Completed waste audits, which identified opportunities to reduce the amount of waste produced and to divert waste from landfill, at all wholly owned manufacturing plants. Made significant progress in recycling, bringing rate to 76%. Two plants, West Hershey and Reese, both located in Hershey, Pennsylvania, recycle 92. 1% and 91. 1%, respectively, of their waste. In January 2011, our Reese plant in Hershey, PA, became a zero-waste-to-landfill operation. Reduce water use by 15% by 2011 (US manufacturing, 2008 baseline). •• • 1. 50 1. 00 0. 50 ’09 ’10 Reduce waste generated by 15% by 2011 (US manufacturing, 2008 baseline).

Complete waste audits of all Hershey wholly owned plants by 2010. Increase waste recycling in wholly owned manufacturing plants from 72% to 80% by 2012 (2009 baseline). •• •• •• •• •• • •• • Total Waste Recycling West hershey manufacturing Facility, hershey, pa 80% 60 40 20 ’09 ’10 At least one zero-waste-tolandfill manufacturing plant by 2012. * in wholly owned manufacturing operations. ?? ? ? = achieved ?? ? = on track ? ? = under development ? = needs improvement 3 The hershey Company CorporaTe soCial responsibiliTy sCoreCard 2010 http://www. ThehersheyCompany. com/social-responsibility

Foster a desirable place to work through: Total Recordable Incident Rate 4. 00 3. 00 Incident Rate Incident Rate Workplace Target 2010 progress Continue to achieve top-tier* safety performance as measured by Total Recordable Incident Rate. Continue to achieve top-tier safety performance as measured by Lost Workday Incident Rate. Continue to achieve top-tier safety performance as measured by no work-related fatalities. Promote employee health and welfare through investments in progressive wellness programs. Lost Workday Incident Rate 1. 00 0. 75 0. 50 0. 25 ’08 ’09 ’10 2. 00 1. 00 ’08 ’09 ’10 afety and wellness at work •• •• •• •• •• •• •• Total Recordable Incident Rate continued to achieve top-tier status. Lost Workday Incident Rate continued to achieve top-tier status. Sustained no work-related fatalities. Achieved top-tier status. Put in place five wellness programs globally. Increased communications for and participation in Hershey’s Lifestyle Returns program. Completed Hershey’s scorecard for the Healthy Weight Commitment Foundation. Will redefine and develop diversity and inclusive-workplace programs, including training and metrics, in 2011. Developing targets for future reporting. penness and inclusivity a superior employee value proposition Redefine our diversity program to further build an inclusive environment that reflects the diversity of our consumers and the markets in which we operate. Measure employee engagement and address insights. •• •• Aligning employee value proposition with Hershey’s global business strategy. Developing employee engagement measures with reporting targets. * Top 30% of our peer group. ?? ? ? = achieved ?? ? = on track ? ? = under development ? = needs improvement 4 The hershey Company CorporaTe soCial responsibiliTy sCoreCard 2010 ttp://www. ThehersheyCompany. com/social-responsibility Positively impact society and local communities where we live and work through: Employee Giving $2. 0 1. 5 Dollars in Millions Dollars in Millions Community Target 2010 progress Provide corporate and local philanthropic funding to all countries where we have operations by 2012. Develop and implement a system to track the contribution of employee expertise in the community by the end of 2011. Increase the number of Project Fellowship household partnerships matched to student homes by 20% by 2011 (2009 baseline).

Expand employee engagement by the North American Sales team through the CSR Sales Advocate program by increasing participation in events to 100 per year by 2011. Corporate Donations $20 15 10 5 ’08 ’09 ’10 ? Cash ? Product corporate philanthropy contribution of expertise employee giving and volunteerism • 1. 0 0. 5 ’08 ’09 ’10 ? Children’s Miracle Network ? United Way Cash donations increased by 39. 6%. Total donations dropped due to fewer product donations. Approved, for the first time, corporate contribution grant agreements for China, India, Philippines and Brazil.

Began developing a tracking system for company contributions of time and expertise, to be put in place by year-end 2011. •• •• • Increased the number of Project Fellowship homes matched with employee groups by 12%. Achieving steady growth by identifying more volunteer groups. Focusing on developing more engagement with sales teams and global manufacturing locations. US sales teams in 40 districts nationwide led or participated in 117 group events in their communities, which exceeded expectations. Will work to sustain this level of engagement. •• •• Project Fellowship Participation 80 Number of Households

Increase participation in Dollars for Doers by 20% by 2012 (2009 baseline). •• •• 60 40 20 ’08 ’09 ’10 Participation in our Dollars for Doers program rose 34%. Each participant volunteered a minimum of 50 hours of personal time in exchange for a $250 donation by The Hershey Company to the nonprofit organization of the participant’s choice. hershey employee-adopted project Fellowship student home ?? ? ? = achieved ?? ? = on track ? ? = under development ? = needs improvement 5 The hershey Company CorporaTe soCial responsibiliTy sCoreCard 2010 http://www. ThehersheyCompany. com/social-responsibility

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