SHANGHAI, China – Yum China Holdings, Inc. today announced that it has published its seventh annual Sustainability Report. The report outlines the Company’s achievements and ongoing progress towards its Environmental, Social and Governance (ESG) goals in four focus areas: Environment, Food, People, and Community.
Key highlights from the report include:
- In 2023, the Company inaugurated the first 100% renewable energy cold-chain logistics center in China. By integrating Distributed Photovoltaic (DPV) systems and Virtual Power Purchase Agreements (VPPA), Yum China has successfully transitioned over 70 restaurants and three logistics centers to utilize green electricity, achieving an annual renewable energy consumption of approximately 8,000 MWh. The Company also established the ‘Yum China DPV and VPPA Alliance’ in collaboration with 40 key suppliers. This alliance enables supply chain partners to embrace renewable energy and join transformation.
- As part of its nationwide coffee grounds recycling initiative, the Company built five coffee grounds disposal centers across the country. Environmentally-friendly baskets and trays made with recycled coffee grounds are now being used at over 1,500 KFC restaurants in China, with plans for further expansion in coming years.
- Yum China began exploring the use of generative artificial intelligence in its digital-enabled Food Safety Risk Assessment and Early Warning System, enabling multidimensional assessment of potential food safety risks across the entire operation.
- The Company continued to improve its ‘YUMC Care’ benefits program in 2023, further expanding medical and accident insurance coverage for eligible employees’ family members. Yum China was once again named by the Top Employers Institute as a Top Employer in China for the sixth consecutive year.
- To date, Yum China’s One Yuan Donation initiative has raised over RMB 260 million, contributing to poverty alleviation and rural revitalization by improving the diet and nutrition of children in rural areas and enhancing their access to digital education.
- Yum China provided over RMB 3 million in financial assistance and tens of thousands of meals to those affected by Typhoon Doksuri in July 2023 and the December 2023 Gansu earthquake.
“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” said Joey Wat, CEO of Yum China. “Working side by side with our customers, suppliers and the wider community, we are confident that we can set a leading example in our industry as an environmentally, ethically and socially responsible business.”
Yum China continued to receive external recognition for its sustainability initiatives in 2023.
- The Company ranked No.1 in the Restaurant & Leisure Facilities Industry in S&P Global Corporate Sustainability Assessment (CSA) for the fourth consecutive year, and is the only company in the Restaurant & Leisure Facilities Industry to be awarded a ‘Top 1% Global ESG Score’ in the S&P Global Sustainability Yearbook 2024.
- The Company also attained the “AA” rating in the MSCI ESG rating, the highest ranking in its industry.
Additionally, Yum China joined the United Nations Global Compact (UNGC), committing to operate responsibly based on the UNGC’s ten universally accepted principles in the areas of human rights, labor, environment, and anti-corruption.
To learn more about Yum China’s ESG efforts, visit: https://www.yumchina.com/sustainability/en/home/Index
Read the full 2023 Sustainability Report here.
