Yum China Holdings, Inc. (NYSE: YUMC and HKEX: 9987, referred to as “Yum China” or the “Company”) has unveiled its seventh annual Sustainability Report, highlighting its strides and ongoing commitment to Environmental, Social, and Governance (ESG) goals across four key areas: Environment, Food, People, and Community.
Here are the key highlights from the report:
- Renewable Energy Leadership: In 2023, Yum China launched China’s first 100% renewable energy cold-chain logistics center. Through the integration of Distributed Photovoltaic (DPV) systems and Virtual Power Purchase Agreements (VPPA), the company successfully transitioned over 70 restaurants and three logistics centers to green electricity, resulting in an annual renewable energy consumption of around 8,000 MWh. Yum China also spearheaded the establishment of the ‘Yum China DPV and VPPA Alliance’ alongside 40 key suppliers, fostering a collaborative approach to embracing renewable energy in the supply chain.
- Coffee Grounds Recycling Initiative: As part of its nationwide initiative, Yum China established five coffee grounds disposal centers across the country. These centers facilitate the recycling of coffee grounds, which are then used to create environmentally-friendly baskets and trays utilized in over 1,500 KFC restaurants across China. Expansion plans for this initiative are underway to further amplify its impact in the coming years.
- Innovative Food Safety Measures: Yum China embarked on integrating generative artificial intelligence into its digital-enabled Food Safety Risk Assessment and Early Warning System. This innovative approach enables a comprehensive assessment of potential food safety risks across the entire operation, enhancing the company’s commitment to food safety standards.
- Employee Well-being: The ‘YUMC Care’ benefits program underwent enhancements in 2023, extending medical and accident insurance coverage to eligible employees’ family members. Yum China’s dedication to employee welfare was acknowledged by the Top Employers Institute, naming it a Top Employer in China for the sixth consecutive year.
- Community Engagement: Yum China’s One Yuan Donation initiative has been instrumental in raising over RMB 260 million to support poverty alleviation and rural revitalization efforts. The initiative focuses on improving children’s nutrition and access to digital education in rural areas. Additionally, the company provided financial assistance and meals to those affected by natural disasters, including Typhoon Doksuri and the Gansu earthquake in 2023.
Joey Wat, CEO of Yum China, emphasized the company’s commitment to sustainable growth, stating, “Ensuring that we grow sustainably is of paramount importance to us and to our business and is an essential part of creating long-term value for our shareholders.”
In 2023, Yum China’s sustainability efforts garnered external recognition:
- Industry Leadership: The company secured the top spot in the Restaurant & Leisure Facilities Industry in the S&P Global Corporate Sustainability Assessment (CSA) for the fourth consecutive year. Furthermore, it received the prestigious ‘Top 1% Global ESG Score’ in the S&P Global Sustainability Yearbook 2024, solidifying its position as an industry leader.
- ESG Rating: Yum China achieved an “AA” rating in the MSCI ESG rating, marking the highest ranking in its industry.
- UNGC Membership: Yum China joined the United Nations Global Compact (UNGC), committing to operate responsibly based on the UNGC’s principles across human rights, labor, environment, and anti-corruption.
Through these initiatives and recognitions, Yum China aims to set a leading example in the industry as an environmentally, ethically, and socially responsible business, collaborating closely with stakeholders to drive positive change.
