Ray Major June 26, 2013 The Hershey Company – Certification and Sustainability

6/13/2016 1:28 PMSr. Leaders Meeting Key Messages Chocolate is Core to Our Business. Chocolate is Core to Our Business. To secure our business we need a sustainable supply of high quality cocoa. To secure our business we need a sustainable supply of high quality cocoa. To obtain this we need: To obtain this we need: –Motivated cocoa farmers –Government engagement –Efficient supply chain partners –Programs on the ground that build capacity –Standards and Independent Verification - Certification

6/13/2016 1:28 PMSr. Leaders Meeting Hershey, a global company…  $6.6 billion net sales in 2012  ~13,000 employees around the world  Products available in over 70 countries around the world  Hershey products manufactured in 17 countries

6/13/2016 1:28 PMSr. Leaders Meeting With Iconic Brands…

Hershey Core Values Milton S. Hershey (b. 1857) “Doing well by doing good” Guided by stakeholder insights Driven by a higher sense of purpose

6/13/2016 1:28 PMSr. Leaders Meeting Committed to Partnerships Abidjan Cocoa Declaration

10%40-50%100% Certified Cocoa Certified cocoa pledge

6/13/2016 1:28 PMSr. Leaders Meeting Who will we work with? Open Approach Utz Utz Fair Trade USA Fair Trade USA Rainforest Alliance Rainforest Alliance

6/13/2016 1:28 PMSr. Leaders Meeting Working Together to Transform Cocoa Where We Are TodayWhere We Need to Go Subsistence FarmingBusiness Farming Low Yields, Extraction Mentality, Extra Cash High Yields Sustainable Production Income Poverty, Social Issues Pathway to Wealth, Thriving Communities

6/13/2016 1:28 PMSr. Leaders Meeting Why Certification Matters To Define Standards for Acceptable Practices To Define Standards for Acceptable Practices –Social –Environmental To Facilitate the Organization of Farmers into Groups To Facilitate the Organization of Farmers into Groups –Communication –Training –Extension To Validate Adherence to the Standards To Validate Adherence to the Standards

6/13/2016 1:28 PMSr. Leaders Meeting Defining Certification: Hershey’s Perspective Certification Is: Certification Is: –A tool to achieve our sustainable cocoa objectives while addressing social and labor issues. –An Independent Verification that our supply chain adheres to approved standards Certification Is Not: Certification Is Not: –A substitute for involvement on the ground –A way to brand our product –Adequately demonstrating Farmer Value

6/13/2016 1:28 PMSr. Leaders Meeting Certification 2020: Hershey’s Goals Certification 2020: Hershey’s Goals Precompetitive/Public – Private Partnerships Precompetitive/Public – Private Partnerships –Single Voice to the Farmer –Supply Transparency Robust M&E Framework Robust M&E Framework –Positive Impact for Farmers –Productivity Sustainable Cocoa Sustainable Cocoa –Integration with National Plans –Standards Recognized by Consumers

Hershey Commitment Modernizing Cocoa Farming  750,000 cocoa farmers directly impacted  2 Million West Africans indirectly benefit

6/13/2016 1:28 PMSr. Leaders Meeting Thank you!