Hershey reduces environmental impact across its value chain
The Hershey Company (NYSE:HSY) is making measurable progress on its commitment to act on climate change. Recent initiatives include the launch of a third utility-scale solar project, energy and water optimization investments and continued progress addressing land use change
Investments in solar energy equate to taking nearly 79,000 gas-powered vehicles off the road per year
HERSHEY, Pa., Nov. 17, 2022 /PRNewswire/ -- The Hershey Company (NYSE:HSY) is making measurable progress on its commitment to act on climate change. Recent initiatives include the launch of a third utility-scale solar project, energy and water optimization investments and continued progress addressing land use change. As stated in its 2021 ESG (Environmental, Social and Governance) Report, the candy and snack maker reduced its Scope 1 and 2 emissions by 48 percent and Scope 3 emissions by 18 percent against a 2018 baseline. As part of its science-based targets, Hershey aims to reduce Scope 1 and 2 emissions by 50 percent and Scope 3 by 25 percent by 2030.
Investing in Renewable Energy
Hershey and National Grid Renewables announced Hershey's 140-megawatt Power Purchase Agreement (PPA) for the Copperhead Solar & Storage Project in Falls County, Texas earlier this month. The project is expected to produce an estimated $25 million in direct economic impact throughout its first 25 years of operation, including the production of new tax revenue, onsite operations jobs and the creation of a charitable fund estimated at $600,000. This is Hershey's third solar PPA. The company's second project with National Grid Renewables, Noble Solar & Storage, is located in Denton County, Texas.
"Investment in renewable energy is pushing us closer to achieving our ambitious science-based targets," said Mark Kline, Director, Commodities & Specialty Procurement at The Hershey Company. "The impact of these three solar projects will be equal to taking nearly 79,000* gas-powered vehicles off the road per year."
Reducing Energy Intensity & Water Use
At the company's iconic headquarters in Hershey, Pa. and in manufacturing facilities around the world, a $3 million investment for energy optimization includes systems to report real-time utility usage data for electricity, natural gas and water. Most of these systems will be installed in U.S. facilities by the end of this year and in international facilities in 2023. In 2021, the company also invested nearly $1.5 million in high-efficient equipment and adjusted operating procedures to reduce well water usage. These recent environmental investments also help to reduce operating costs. 77 percent of the company's electricity consumption in 2021 was renewable or zero-emissions energy. The investment in real-time utility usage data is expected to uncover additional energy saving opportunities and help to reduce the company's energy intensity by approximately 10 percent over the next five years.
