The Hershey Company (HSY) — ESG & Values Scores

Environment story

Hershey has established environmental commitments including absolute reduction targets for Scope 1, 2, and FLAG (Forest Land and Agriculture) emissions aligned with global standards. However, quantified Scope 3 emissions data is not disclosed in available filings, creating opacity on supply-chain carbon intensity—a material concern given cocoa sourcing represents significant upstream exposure. The company acknowledges deforestation risk in cocoa supply chains and has initiated mitigation efforts, but net-zero target year is not explicitly stated in reviewed documents. Compliance with EU Deforestation Regulation (EUDR, effective December 2026) will require substantial diligence investment. No major toxic-waste or water-consumption controversies are documented in 10-K risk factors, though climate-change supply-chain vulnerability is explicitly identified as a material risk. The company's sustainability strategy exists but lacks third-party verification of decarbonization infrastructure investments beyond voluntary commitments.

Criticisms on file

Scope 3 emissions undisclosed; supply-chain carbon intensity opacity creates greenwashing risk given cocoa (agricultural commodity) represents material portion of value chain
Source: HSY 10-K Risk Factors: 'The GHG impacts of land-use change are most pronounced in our cocoa supply chain'
Net-zero target year not disclosed in 10-K; company states voluntary commitments but provides no explicit science-based target date, limiting credibility assessment
Source: HSY 10-K Risk Factors: 'The Company publishes its environmental goals... There can be no assurance the Company will achieve its goals'
Climate-change supply-chain vulnerability explicitly identified: extreme weather, rising temperatures, precipitation variability threaten cocoa and agricultural ingredient availability and cost
Source: HSY 10-K Risk Factors: 'Climate and broader changes in the environment pose a significant and increasing risk to global food production systems'

Disclosed initiatives

Absolute GHG Reduction Targets

Company has published environmental goals focused on absolute reduction in Scope 1 and 2 emissions, FLAG emissions, and non-FLAG emissions consistent with global environmental standards

Direction stated; quantified targets and timelines not disclosed in reviewed 10-K
Cocoa Supply-Chain Deforestation Prevention

Multi-year effort to prevent deforestation and build climate and ingredient resilience in cocoa supply chain; GHG impacts of land-use change acknowledged as pronounced in this segment

Mitigation underway but full efficacy and scope unquantified
EU Deforestation Regulation (EUDR) Compliance Preparation

Preparing extensive diligence on seven commodities (cocoa, palm oil, soy) and derived products to ensure no recent deforestation or forest degradation; deadline December 2026

Compliance investment required; potential sales depression if products non-compliant by effective date

Social story

Hershey discloses CEO-to-median-worker pay ratio as required under proxy rules but specific numeric ratio not found in reviewed proxy excerpt; executive compensation structure emphasizes performance-based equity. Board diversity includes 10 of 11 nominees as independent directors; leadership diversity breakdown (executive/board women and underrepresented racial groups) is not quantified in reviewed filings. The company acknowledges talent acquisition and retention as a material risk factor ('Competition for global talent is intense') and emphasizes investment in training and development. Union standing is not explicitly disclosed; no documented major strikes or NLRB complaints in 2024–2025 period are referenced. Supply-chain labor practices and human-rights diligence are mentioned as ESG governance responsibility but detailed audit findings are not provided in reviewed documents. Approximately 74% of manufacturing is US-based, reducing offshore labor-practice opacity, though international operations in Canada, Malaysia, Mexico, Brazil, and India introduce supply-chain compliance complexity.

Criticisms on file

CEO-to-median-worker pay ratio not quantified in reviewed proxy excerpt; proxy states compensation structure and peer-group benchmarking but specific ratio disclosure absent
Source: HSY Proxy DEF 14A: 'CEO Pay Ratio Disclosure' section referenced but detailed numeric ratio not provided in reviewed text
Leadership diversity metrics (women and underrepresented racial groups in executive/board roles) not disclosed in quantitative form in reviewed proxy
Source: HSY Proxy DEF 14A: Board composition highlights skills and attributes but specific DEI percentages not stated
Supply-chain labor and human-rights audit results not detailed; company acknowledges material risk from 'human and workplace rights' issues but public audit findings unavailable in reviewed filings
Source: HSY 10-K Risk Factors: 'Issues related to... human and workplace rights... could jeopardize our Company's image and reputation'

Disclosed initiatives

Talent Acquisition, Development and Retention

Company identifies talent competition as material risk; emphasizes investment in training, coaching, career development and retention activities to sustain core business and drive growth

Commitment stated; quantified retention rates or turnover reduction targets not provided
Human Capital Management Oversight

Compensation and Human Capital Committee established to oversee talent management and pay equity; human-rights and responsible-sourcing practices reviewed by Finance and Risk Management Committee

Governance structure in place; detailed pay-equity audit results not disclosed
Supply-Chain Human Rights and Responsible Sourcing

Finance and Risk Management Committee reviews 'policies and procedures with respect to human rights, environmental stewardship and responsible sourcing/commodities practices within the Company's supply chain'

Oversight framework established; specific audit findings and remediation outcomes not detailed in proxy

Governance story

Hershey maintains a single-class voting structure (Common Stock and Class B Common Stock) with Hershey Trust Company as controlling shareholder, exercising influence over board nominations and corporate direction. Board independence is high: 10 of 11 director nominees (91%) are independent; the sole non-independent director is CEO Kirk Tanner, appointed August 2025. Board composition reflects robust governance practices including annual director elections, 72-year retirement age guideline, 13-year term limit for non-employee directors, and five standing independent committees (Audit, Compensation, Finance & Risk, Governance, Executive). Annual Board and committee self-evaluations are conducted. Lobbying expenditure data is not disclosed in the 10-K or proxy, preventing quantitative assessment of political influence activities targeting environmental or consumer-protection deregulation. No active antitrust proceedings, material SEC consent decrees, or consumer-safety fines are referenced in 2025 filings. The company has experienced cyber-security incidents and data-breach risks but reports no significant operational impact to date. No shareholder climate-litigation or injunction activities seeking to block ESG proposals are documented.

Criticisms on file

Dual-class share structure: Hershey Trust Company holds controlling interest via Class B Common Stock with unequal voting rights; limits shareholder democracy and concentrates corporate control
Source: HSY Proxy DEF 14A: 'Election Procedures' section describes two-class voting; 'Information Regarding Our Controlling Stockholder' documents Hershey Trust Company's influence
Lobbying expenditure not disclosed; company does not report annual lobbying spend or specific advocacy positions on climate, consumer protection, or environmental deregulation in 10-K or proxy
Source: HSY 10-K and Proxy DEF 14A: No lobbying spending or advocacy disclosure in reviewed documents
Potential conflicts of interest: Hershey Trust Company, Milton Hershey School, and affiliated entities engage in related-party transactions reviewed by Executive Committee; independence of approvals subject to controlling shareholder influence
Source: HSY Proxy DEF 14A: 'Certain Transactions and Relationships' section; Executive Committee charter requires review of 'related-party transactions between the Company and Hershey Trust Company'

Disclosed initiatives

Independent Board Leadership and Governance Structure

91% independent directors; independent Chairman (Huong Maria T. Kraus) elected annually; five standing independent committees (Audit, Compensation, Finance & Risk, Governance, Executive); independent directors meet in executive session at every Board meeting

Strong independent oversight; limits controlling shareholder influence over day-to-day governance, though dual-class voting structure preserves Hershey Trust Company's controlling interest
Annual Board Refreshment and Term Limits

All directors elected annually; retirement age guideline of 72; 13-year term limit for non-employee directors; Board evaluates composition and identifies candidates annually via Governance Committee

Regular director rotation and performance evaluation; supports governance renewal
ESG Governance Responsibility Delegation

Clearly delineated ESG responsibilities across Board committees: Governance Committee oversees sustainability targets and metrics; Finance & Risk Committee reviews human rights, environmental stewardship, responsible sourcing, and A.I. risk integration

Formal ESG oversight structure in place; accountability for sustainability strategy implementation
Cybersecurity and Information Technology Risk Oversight

Finance & Risk Management Committee monitors company's use of A.I. and related IT risk; A.I.-related risks integrated into risk management program; annual employee cybersecurity training and phishing simulations conducted; cyber insurance policy maintained

Proactive IT governance; no material operational impact from past cyber incidents reported, though continuous threat evolution acknowledged

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of The Hershey Company. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open The Hershey Company in the app for interactive charts and portfolio building.

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