June 10, 2026
We believe every product we make is a moment of goodness. Leading in next-generation snacking means delivering on that promise today and for generations to come by continuously evolving with a changing world. Increasing climate pressures, supply chain volatility, evolving regulations, and shifting consumer expectations all demand that we position ourselves for long-term growth, which is why we continue to evolve our portfolio and global footprint.
In 2025 we refreshed our sustainability strategy in response to these changes through three interconnected pillars: how we source ingredients, how we make products, and how we delight consumers. Together these pillars reflect the areas where responsible business practices can create value for our stakeholders while helping strengthen Hershey for the future.
Our 2025 Responsible Business Report reflects on the progress we’ve made, the lessons we’ve learned from our past strategy, and the impact of our sustainability efforts to date. As Hershey enters an exciting new chapter, we are building on this foundation with a refreshed sustainability strategy designed to meet the realities of a changing global snacking industry. Grounded in years of commitment and informed by what we’ve learned along the way, this next phase will help strengthen our business resilience, support efficient operations, and enable us to continue meeting evolving consumer needs.
Source: Building Resilient Ingredient Supply Chains
Our ability to deliver great-tasting products depends on the diverse set of ingredients we source from farming communities around the world, including cocoa, peanuts, sugar, and dairy, making supply chain resilience a business imperative.
This year, we continued to invest in programs that support farmers and help protect ecosystems connected to our sourcing footprint. Resilience depends on healthy farms and healthy farmers together, and we are pulling the levers we believe best achieve both. This is achieved by helping farmers grow ingredients within, or more closely aligned to, natural system boundaries, so that thriving farming communities and healthy agricultural ecosystems reinforce one another over the long term.
Highlights include:
- We achieved enrollment of almost 5,500 farmers in the Hershey Income Accelerator Program (HIAP), which provides cash incentives tied to farm improvements and household resilience activities.
- We continued our work with Earthworm Foundation and Airbus’ Starling satellite monitoring technology to support deforestation- and conversion-free sourcing efforts.
- We expanded regenerative agriculture initiatives across key ingredient supply chains, including cocoa, dairy, and sugar. Through our Northern Plains Trusted Advisor Partnership, we helped enroll more than 30,000 hectares in new regenerative practices. We also partnered with Texan By Nature to restore playa systems in Texas peanut-growing regions, helping protect the water resources that sustain long-term production.
- We strengthened human rights and environmental due diligence processes through enhanced supplier engagement, monitoring, and traceability systems.
Make: Driving Efficiency Through Our Operations
Efficient operations help reduce waste, lower costs, strengthen resilience, and support environmental progress. Efficient, resilient operations also help future-proof our business against energy market volatility, water scarcity, carbon pricing, and strained waste systems.
Across our manufacturing network, we are focused on improving efficiency while reducing our environmental footprint.
Highlights include:
- We expanded the use of renewable sources of energy across our operations, up to 85%, in 2025.
- We launched on-site solar generation at our Malaysia facility, helping expand access to renewable energy within our manufacturing network.
- We continued to advance energy efficiency projects across our facilities to reduce energy use and emissions. We have now progressed to 43% reduction toward our Scope 1 and 2 SBTi target of 50% by 2030.
- Our employees contributed sustainability solutions through Green Teams, helping identify opportunities to reduce waste, conserve resources, and improve operational performance. A project by our Malaysian Green Team contributed approximately 47,000 pounds of packaging reduction.
Delight: Meeting Evolving Consumer Expectations
Consumer expectations continue to evolve, and sustainability is increasingly shaping how products are designed, developed, and evaluated.
Sustainability is most effective when it is intentionally considered as part of how portfolios are shaped and evolve over time, reflecting how products are made, how they perform across their lifecycle and how they align with consumer expectations.
Highlights include:
- We have acquired five brands since 2017 to expand our presence in protein and reduced-sugar offerings, complementing ongoing organic innovation across snacks and plant-based chocolate.
- We have maintained our commitment to affordability and accessibility, helping our portfolio stand apart in a broader “Better-For-You” confectionery category that carries a price premium.
- We have generated approximately one third of our total portfolio retail sales from products that offer portion-controlled formats or alternatives with reduced or no sugar, reflecting a broader range of choices across occasions and preferences.
- We are advancing packaging optimization efforts that reduce material use and improve recyclability while maintaining product quality and performance.
What’s Next
Our refreshed strategy is designed to help Hershey navigate a rapidly changing environment while continuing to create value for consumers, customers, farmers, communities, employees, and shareholders.
Responsible business is not separate from our growth strategy. Instead, it is an important part of how we are building a stronger, more resilient Hershey. As we continue our journey to lead next-generation snacking, we remain committed to creating moments of goodness while helping prepare our business, our supply chain, and our communities for the future.