GLOBAL SOURCING POLICIES
Global Sourcing Policies
Our interdependencies within a global ecosystem have driven us to establish progressive sourcing policies to govern how we source our ingredients and supplies.
The Hershey Company is dedicated to a transparent supply chain, and we have a long history of safe and
consumer products. high quality
Forests are critical parts of our natural ecosystem, serving as important reservoirs of greenhouse gases that would otherwise contribute to climate change. Forests also provide habitat for key plant and animal
species,and contribute countless other ecosystem services such as preventing soil erosion that play a big role in our daily lives and global economy.
Over the past 50 years, about half the world’s original forest cover has been lost, and pulp and paper
as well as palm oilhave been recognized to pose a continued deforestation risk.
Our goal is to have a sustainable supply chain for our operations across the globe, and we believe this can only be achieved when deforestation isn’t a part of the equation.
Below are links to our official company policies for the sourcing of key ingredients. We will work with our suppliers to meet the expectations outlined in these documents.
We are committed to complying with the California Transparency in Supply Chains Act of 2010, as well as the United Kingdom Modern Slavery Act. As part of our commitment to Good Business practices, we constantly strive to ensure our supply chains are responsibly managed.
Supplier Code of Conduct
The Hershey Company has a long history of operating with high ethical standards and integrity. We have done this by balancing our strong desire for profitable growth with our commitments to our various stakeholders, including our employees, shareholders, consumers and the communities in which we operate.
Hershey’s Supplier Code of Conduct outlines our standards and expectations with respect to key areas of corporate social responsibility. Our goal is to work with suppliers and vendors to assure compliance with these requirements. Interested parties can view Hershey's Supplier Code of Conduct.
Partners in Quality
Continuing the legacy of our founder, Milton S. Hershey, our commitment to delivering quality products to our customers and upholding ethical business practices is core to who we are. We strive to make sure all our decisions — from responsible sourcing of our ingredients and environmental stewardship to fostering diverse work environments and transparency— are guided by our deeply held values.
“Give them quality. That’s the best kind of advertising in the world.”
The Hershey Company views its business partners as an integral part of its success. Our business partners are ingredient, packaging and raw materials Suppliers, Co-manufacturers, Co-packers, and Food Licensees - collectively referred to as Suppliers. We respect our supply chain network and strive for the development of a relationship with our Suppliers that will continually improve the product quality and safety that our customers and consumers demand.
The expectations set forth in this manual are a comprehensive set of food safety and quality programs that serve as a solid foundation for our Supplier Quality Management system. The Hershey Company (Hershey) is committed to delivering safe, quality foods. We rely on our Suppliers to embrace these programs and implement a culture that continually pursues improvements in food safety.
• Ingredient Suppliers
• Contract Manufacturers
• Contract Packaging
Vendor Insurance Requirements
Required insurance limits vary based on the Vendor’s business classification. If these insurance requirements differ from limits agreed to in a written contract, the written contract will prevail. Contact your Hershey business partner if you have questions regarding your company’s classification or the insurance requirements.
Company Classification Description
• Medical Services – Contract Nurses & Medical Service Providers
• Small Co-Manufacturer / Co-Packer – Co-Man less than 10M pounds per year; Co-Packer less than 75 M pounds per year
• Large Co-Manufacturer / Co-Packer – Co-Man greater than 10M pounds per year; Co-Packer greater than 75 M pounds per year
• Professional Services – Marketing, Legal, Independent Contractor, Licensee & Information Systems (IS)
• Vendor – Contractor (Repair / Maintenance), Non-Ingredient Supplier & Customer
• Specialty Services – Engineering, Design Build & Environmental Services
• Warehouse & Storage Facilities – Storage of Hershey owned/leased property
As a leading confectionery and snack food company, The Hershey Company selects and develops the best sources of supply meeting our quality and service requirements at competitive costs. To strengthen our base of world-class suppliers, Hershey seeks opportunities for qualified minority, women, veteran, LGBT, disadvantaged and disabled owned companies to compete on an equal basis with other suppliers and contractors as primary suppliers.
Hershey is now using the Diversity Information Resources’ database to find certified diverse suppliers. If you are interested in doing business with Hershey as a diverse supplier please go to Diversity Information Resources’ website to register in their database. Registration is free, and enables suppliers to be contacted by Diversity Information Resources’ wide range of corporate clients.
OUR CERTIFIED INGREDIENTS
Our Certified Ingredients
Hershey is committed to sourcing 100 percent certified and sustainable cocoa for all chocolate products around the world. Certified cocoa is verified by independent auditors to ensure the highest international standards for labor, environmental and farming practices. Hershey sourced 50 percent certified and sustainable cocoa in 2015, achieving our original 2016 goal one year early.
Hershey sources cocoa through three of the world’s most recognized cocoa certifying organizations: UTZ, Fairtrade USA and Rainforest Alliance. As Hershey’s buying volume increases, the company will work with other well-established certification organizations to expand their capacity to certify more cocoa farmers globally.
U.S. consumers can currently purchase Dagoba and Scharffen Berger products with 100 percent cocoa from Rainforest Alliance Certified™ farms.
Palm Oil Certification
The Hershey Company joined the Roundtable on Sustainable Palm Oil (RSPO) in 2011 and sourced 100 percent of its palm oil as RSPO-certified by the end of 2013, more than a year ahead of our original pledge.
Traceability to the Plantation Level
We are currently working in partnership with The Forest Trust (TFT) toward tracing our palm and palm kernel oil supplies to the mill level. This has helped us better understand if the palm oil we source is linked to areas where there are sustainability concerns, such as deforestation. For more information, please visit our Palm Oil section.
Our Certified Ingredients
HERSHEY IS AHEAD OF SCHEDULE ON OUR COMMITMENT TO SOURCE 100 PERCENT OF OUR COCOA FROM CERTIFIED GROWERS BY 2020