This data will help it to better understand its supply chain
Since becoming a TFT member in September 2014, Hershey has worked with TFT to trace its palm oil supply chain to more than 94 percent of all the mills that supply it with the palm and palm kernel oil used in Hershey products around the world (as of Q4 2014).
This mapping work will allow Hershey and TFT to prioritise suppliers for further engagement based on potential risk. This will assist the company in better understanding how its sourcing may be linked to potential deforestation or social challenges in local communities.
The wide distribution of mills illustrates the significant level of support needed from suppliers in order to comply with its new palm oil sourcing policy.
Key findings of Hershey’s palm oil tracing:
- More than 1,200 mills supply palm oil to Hershey manufacturing facilities worldwide
- Those mills are located in two regions; South east Asia (1,235 mills) and Central America (11 mills)
- Palm oil is used in 13 Hershey plants located in three countries: The United States (9 plants), Mexico (2 plants) and China (2 plants)
Tracing Hershey’s palm oil supply is part of a commitment the company made in 2014 to source responsible, traceable palm oil. This resulted in Hershey committing to No Deforestation and No Exploitation in its palm oil supply chain, implementing a new, comprehensive palm oil sourcing policy for all of its palm suppliers.