As a global company that contract manufactures our products and transports them around the world using third-party partners, we recognize that the majority of our environmental impact occurs within our supply chain. We are committed to reducing the environmental footprint of our supply chain and we encourage our third-party partners, including vendors and logistics providers, to embrace a shared commitment to environmental sustainability.

Improving Third-Party Factories

We require third-party factories that make our products to comply with all applicable environmental laws and regulations. Furthermore, when Hasbro establishes additional product and packaging sustainability criteria, they are incorporated into our product specifications and standards to which we hold our vendors. We monitor environmental compliance through regular audits, addressing issues as needed, and provide training to help our vendors improve performance as part of our ethical sourcing program.

Eco-Efficient Logistics

We contract manufacture products from all around the world with the majority coming from Asia. Our product travels great distances to serve our changing market needs that continue to evolve as our business expands and grows. We contract with a vast logistics network—including trucks, railroads, barges, airplanes, and container ships—to transport our products from factories through distribution centers to retail stores. To improve cost efficiency while minimizing the environmental impacts, we pursue a variety of transportation strategies.

We also utilize third-party programs to improve the environmental footprint of our logistics operations. For example, Hasbro has been a member of the U.S. Environmental Protection Agency (EPA) SmartWay® Transport Partnership since 2012. This program helps business move products as efficiently as possible while utilizing transportation SmartWay® members. While not a requirement, we have a preference to work with SmartWay® carriers.

Natural Resource Conservation

Hasbro is deeply committed to conserving our use of natural resources across our global operations and sourcing natural resources sustainably for use in our products. We are proud of the strides we have made to date to reduce energy and water use at our owned and operated facilities, as well as our continued efforts to source paper sustainably for use in our products and packaging.

While Hasbro’s core business areas of toy and game manufacturing, digital gaming, and entertainment production are not water intensive, we consider access to clean water a fundamental human right and Hasbro is motivated to do our part to protect the natural resource. To address this subject Hasbro has implemented the following water conservation strategies:

• Supplier Water Management: All Hasbro suppliers are required to implement a water management program that documents, characterizes, and monitors water sources, use and discharge; seeks opportunities to conserve water; and controls channels of contamination. Wastewater must also be monitored, controlled and treated as required prior to discharge or disposal. This is stipulated in the RBA Code of Conduct and included in our Hasbro Ethical Sourcing audit process and factory performance evaluation. We monitor and track supplier data on water through the required annual Higg Facility Environmental Module (FEM) and engage our supply chain to ensure that they comply with the RBA Code and reduce their water usage.

  
  
  

   

• Regional Water Assessment: In 2021, Hasbro conducted our first annual global assessment of water availability and water quality in the areas in which our suppliers and owned and operated facilities are located. As part of this work, we used the World Resources Institute’s Aqueduct Water Risk Map tool to identify priority watersheds as to help ensure our supply chain’s operations are not negatively impacting surrounding communities.

  
  
  

Assessment Findings:

• Our owned and operated facilities consist of owned and leased office space and distribution centers, in which water use is minimal, mainly for domestic use in kitchens, restrooms, cleaning and some landscaping.
• For our suppliers, where water use may be higher and have more impact, Hasbro’s assessment looked at sources of water used at each facility in conjunction with identifying areas that lack the availability of water, proper drinking water, and adequate wastewater sanitation practices as shown below. Hasbro will prioritize further engagement with suppliers whose factories are located in areas that are categorized as the highest risk all three metrics.