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Hershey 27/100

(NYSE:HSY) 13 of 20 (2016)

The Hershey Company (Hershey) ranks thirteenth on the benchmark, providing average disclosure on its approach to managing forced labor and human trafficking risks in its supply chain. The company identifies forced labor as a priority issue and as a key challenge for responsible sourcing. Hershey has taken steps to trace its supply chain and to ensure that its purchasing practices mitigate forced labor risks in its supply chain. To improve its disclosure and performance, Hershey is encouraged to disclose evidence of its supplier audits. The company also has an opportunity to improve in the areas of recruitment and worker voice.

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27 /100

2016 Ranking: 13 of 20

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27

Hershey was evaluated both in 2016, when it ranked 13th out of 20 companies, and in 2018, when it ranked 24th out of 38 companies. Compared to 2016, the company decreased its score from 27/100 to 22/100. Since 2016, the company has improved by disclosing more information on traceability, such as the names of some of its palm oil suppliers and the countries of palm oil mills supplying 97% of its palm oil.

METHODOLOGY

22

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

2018 BENCHMARK

2016

27

Hershey was evaluated both in 2016, when it ranked 13th out of 20 companies, and in 2018, when it ranked 24th out of 38 companies. Compared to 2016, the company decreased its score from 27/100 to 22/100. Since 2016, the company has improved by disclosing more information on traceability, such as the names of some of its palm oil suppliers and the countries of palm oil mills supplying 97% of its palm oil.

METHODOLOGY

2018

22

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

2018BENCHMARK

THEME AND INDICATOR SCORE

The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains. There are a total of 22 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

The company's top-level commitments on forced labor, supply chain standards, management processes, training programs and stakeholder engagement.

OVERALL 42
INDICATORS
Awareness and Commitment
100
Supply Chain Standards
60
Management and Accountability
50
Training
0
Stakeholder Engagement
0

Traceability and Risk Assessment

The extent to which the company traces its supply chain and conducts forced labor risk assessments, and discloses information about these processes.

OVERALL 50
Traceability
75
Risk Assessment
25

Purchasing Practices

The company's awareness and action on purchasing practices that can exacerbate forced labor risks and its process for selecting suppliers, integrating standards into contracts, and cascading them down the supply chain.

OVERALL 38
Purchasing Practices
50
Supplier Selection
50
Integration into Supplier Contracts
50
Cascading Standards through the Supply Chain
0

Recruitment

The company's approach to reducing exploitation by recruitment agencies and eliminating workers' payment of fees for their jobs.

OVERALL 0
Recruitment Approach
0
Recruitment Fees
0
Recruitment Audits
0

Worker Voice

The extent to which the company proactively communicates with workers through the supply chain, enables freedom of association and ensures access to effective and trusted grievance mechanisms.

OVERALL 15
INDICATORS
Communication of Policies
50
Worker Voice
0
Worker Empowerment
0
Grievance Mechanism
10

Monitoring

The company's process for auditing (including whether it includes non-scheduled visits, document review, worker interviews) and disclosure about the audit process and findings.

OVERALL 23
Auditing Process
25
Audit Disclosure
20

Remedy

The extent to which the company has corrective action plans for non-compliant factories, as well as processes for remedying workers who are victims of forced labor, and reports on remedies provided.

OVERALL 25
Corrective Action Plans
50
Remedy Programs
0

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