Hershey Company (The)
HSY
Consumer Staples
3
exclusion reasons
3 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
The Hershey Company has set a 2030 science-based target to reduce its Scope 1 and 2 greenhouse gas emissions by 50% from a 2018 baseline, which was validated by the Science Based Targets initiative. However, the company faces a consumer class action lawsuit alleging its marketing misleads reasonable consumers seeking sustainable cocoa products. The suit, filed in January 2024, specifically challenges Hershey's assertion of having "achieved 100 percent certified and sustainable cocoa" through its use of the Rainforest Alliance seal. This legal action centers on the claim that the company's sustainability representations are deceptive.
The Hershey Company is a member of the World Cocoa Foundation and the National Confectioners Association, trade groups that have historically opposed mandatory due diligence legislation for cocoa supply chains. Hershey’s own 2024 Advocacy Expenditure Report details corporate expenditures for lobbying activities, though the company states it does not use corporate funds for political contributions. For over two decades, Hershey and its industry peers have faced litigation alleging the use of child and forced labor in West African cocoa sourcing; a 2021 lawsuit by eight children from Ivory Coast specifically named Hershey as a defendant. While the company publishes sustainability goals and is a signatory to industry frameworks, these voluntary measures have persisted alongside ongoing allegations and legal challenges concerning labor abuses in its supply chain. This pattern of engaging in industry lobbying while facing repeated, serious allegations of human rights violations in cocoa sourcing constitutes a use of corporate influence to shield its practices from stricter regulatory oversight.
The Hershey Company hired six union-avoidance firms to oppose an organizing drive at its Stuarts Draft, Virginia, plant in early 2022. The company created an anti-union website and held mandatory “captive audience” meetings for the plant’s approximately 1,300 workers, warning them that unionizing would subject them to leaders who “gamble” with their interests. Workers also alleged the company was illegally monitoring their in-person and online activities. The union vote ultimately failed in March 2022. This documented campaign of active interference with worker organizing constitutes a clear pattern of anti-union activity.
Research Sources
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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