Climate Change Data

Environmental Metrics

ESG Focus Areas

• Food
• Planet
• People

Environmental Achievements

• Reduced energy consumption in restaurants by 22 percent compared to a 2005 baseline
• Saved 4.3 million megawatt-hours (MWh) of electricity due to energy efficiency improvements between 2005 and 2017
• Reduced water consumption by 10 percent compared to a 2015 baseline
• Diverted 25 percent of restaurant waste from landfills in 2017
• Built 38 percent of new company-owned and franchise restaurants to green building standards
• Sourced 69 percent of global paper-based packaging and service products from either certified virgin or recycled sources in 2017

Social Achievements

• Delivered Leading Culture to Fuel Results course to all leaders globally, with 95 percent participation for directors and above
• Launched Grow Yourself Week in 2017 to educate corporate employees on personal and professional wellness
• Updated global strategy for diversity and inclusion, leading to a new diversity council and public diversity commitments
• Achieved 41 percent representation of women in global management positions
• Donated 6.9 million pounds of food through our Harvest program in 2017
• Provided financial support, time and materials valued at $70 million in 2017

Governance Achievements

• Established Yum! Brands’ multi-year global growth and transformation strategy (Recipe for Growth)
• Refreshed our Global Citizenship & Sustainability Strategy to reflect our food, planet and people priorities
• Conducted our first formal materiality assessment to identify our most important CSR issues
• Updated division enterprise risk management process to inform global growth strategy

Climate Goals & Targets

Environmental Challenges

• Ensuring that food safety processes are aligned with an evolving, franchise-focused business model
• Providing consumers with more access to balanced food choices that are less processed or modified
• Labeling menu offerings clearly and marketing responsibly to meet consumers’ desire for increased transparency
• Attracting and retaining talent in the quick-service restaurant sector
• Monitoring and adhering to laws that pertain to employee wages, immigration status and other employment issues
• Ensuring ethical practices across the entire business in more than 135 countries and territories
• Responding to changes in regulation and operational costs related to GHG emissions and energy consumption throughout our value chain
• Evaluating and implementing new technologies and energy sourcing solutions that can reduce energy use and emissions
• Further understanding and addressing increasing levels of concern about the challenges of industry waste, including lack of infrastructure, lack of influence over consumer behavior and challenges with industry regulation
• Identifying regions of operation in which water scarcity issues are high and addressing water use
• Understanding and addressing the environmental and social risks associated with our key supply chains including palm oil, beef, chicken and paper

Mitigation Strategies

• A culture of food safety resonates from the top down into our restaurants and among our franchise partners and employees. Audits of our suppliers, distributors and restaurants are conducted regularly.
• Yum! Brands deployed a new global nutrition strategy that emphasizes transparency of ingredients, sodium reduction, simplified ingredients with increased vegetarian, high-protein, lower-calorie, and other offerings that promote a balanced diet.
• We are committed to transparency and responsible labeling. Each of our brands publicly shares its nutritional profile, allergens and ingredients of its core menu items, which consumers can easily access online.
• All of our environmental initiatives — from building improvements to efforts to source responsibly sourced timber and palm oil — are examined through the lens of reducing GHG emissions and addressing climate change.
• More than one-third of new restaurants are meeting the requirements of our green building efforts that provide guidelines for reducing energy and water consumption and constructing buildings to leave a smaller footprint on the planet.
• At restaurants worldwide, more efficient equipment — as well as tools that allow restaurants to monitor and manage their consumption — are leading to lower energy use and, therefore, lower emissions. Since 2005, these improvements have saved an estimated 4.3 billion MWh of electricity.
• Taking into account the needs of our diverse global markets, Yum! restaurants reduce water through smart building practices — such as high-efficiency irrigation and low-flow fixtures — that will save an estimated 1.3 billion gallons of water from 2017 initiatives alone.
• Yum! restaurants work to recycle used cooking oil, cardboard and plastic waste, and we are an industry leader in donation of wholesome, surplus food from our restaurants, with 6.9 million pounds of food donated in 2017.
• Yum! Brands works to minimize risk throughout our supply chain by requiring that suppliers follow our Supplier Code of Conduct and by engaging in periodic risk assessments and audits.
• Our Sustainable Animal Protein Principles guide our decisions regarding food safety and quality, animal health, environmental stewardship, food security and supplier relationships related to animal protein sourcing.
• We are aware of the rising global threat of antimicrobial resistance and support the One Health approach by working closely with suppliers on responsible, judicious use and reducing the use of antimicrobials important to human medicine where possible.
• By committing to source 100 percent of palm oil and paper-based packaging from sustainable sources by the end of 2018 and 2020, respectively, Yum! Brands is helping protect forests and the ecosystems and communities they support.

Supply Chain Management

Supplier Audits: Approximately 3,000 food safety supplier audits in 2017

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Animal Protein Principles
• Good Antimicrobial Stewardship policy
• Palm Oil Policy
• Paper-based Packaging Sourcing Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

• Zero Hunger
• Decent Work and Economic Growth
• Responsible Consumption and Production
• Climate Action

Awards & Recognition

• Gold Award for Brandon Hall Group’s Excellence in Talent Management Awards
• WorkHappier Trailblazer Award from BI Worldwide

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Anti-corruption
• Anti-competitive Behavior
• Environmental (Materials, Energy, Water, Emissions, Waste)
• Social (Employment, Labor/Management Relations, Occupational Health and Safety, Training and Education, Diversity and Equal Opportunity, Freedom of Association and Collective Bargaining, Forced or Compulsory Labor, Human Rights Assessment, Supplier Social Assessment, Political Contributions, Customer Health & Safety, Marketing and Labeling, Customer Privacy)
• Governance

Environmental Achievements

• Reduced GHG emissions by 716,717 MT CO2e (anticipated annual reduction from conservation and efficiency measures)
• Used recycled fiber in packaging: 29%
• Used recycled plastic resins in packaging: 33%

Social Achievements

• Conducted more than 367,000 restaurant food safety audits since 2016
• Assessed 60% of suppliers (aiming for 100% of Tier 1 suppliers annually by 2021)
• Estimated 140,000 training hours on human rights policies and treatment of individuals

Governance Achievements

• Board of Directors: 33% female
• No confirmed incidents of corruption during 2019

Climate Goals & Targets

Environmental Challenges

• Data collection challenges regarding waste generation and diversion
• Variation in global diversion infrastructure for waste
• Addressing potential security and privacy incidents

Mitigation Strategies

• Refining data collection processes for waste
• Maintaining a program to address potential security and privacy incidents
• Implementing food safety standards covering key risk factors

Supply Chain Management

Supplier Audits: 60% of suppliers assessed in 2019

Responsible Procurement

• Food Safety Standards
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core option

Certifications: Null

Third-party Assurance: Independent third-party accountant for GHG emissions and water withdrawal

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Antimicrobial Resistance (AMR)

Social Achievements

• Implemented health management programs to track and monitor animal health and wellbeing.
• KFC, Pizza Hut, and Taco Bell in the U.S. met commitments to reduce antibiotics important to human medicine in their U.S. poultry supply chains.

Governance Achievements

• Compliance with governmental regulations regarding antibiotic use.
• Engagement with internal and external stakeholders, including the U.S. Roundtable for Sustainable Beef (USRSB) and the International Consortium for Antimicrobial Stewardship in Agriculture (ICASA).

Climate Goals & Targets

Environmental Challenges

• Increasing antimicrobial resistance (AMR) driven by misuse of antibiotics in medical, agricultural, and food sectors.
• Lack of reliable economic data associated with AMR caused by antibiotic use in agriculture.
• Challenges in quantifying second-order effects of AMR, such as trade disruption.
• Lack of transparent data across the public and private sector on AMR.

Mitigation Strategies

• Responsible antibiotic prescription and more specific use of antimicrobials in humans.
• Removal of preventative antibiotics from the value chain in agriculture.
• Improved monitoring of suppliers and targeted removal of medically relevant antibiotics from operations.
• Enhancing husbandry practices, judicial use of antimicrobials for animals, AMR monitoring, and improvement of animal sanitation.
• Increased veterinary oversight of antibiotics in feed, eliminating the use of medically important antibiotics for production purposes.
• Increasing veterinary oversight with a valid Veterinary Client Patient Relationship (VCPR), promotion of veterinary independence, and antimicrobial labeling changes for all antibiotics.
• Improving oversight of production and distribution channels.
• Increased data collection and transparency.
• Education across the public and private sector.
• Collaboration between the public and private sector.

Supply Chain Management

Responsible Procurement

• Minimizing antibiotics of importance to human health from meat chain suppliers.
• Restriction of the use of critically important antibiotics.
• Responsible routine use of antibiotics for prophylactic purposes.
• Constant support for R&D opportunities for judicial consumption of antibiotics.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• People
• Food
• Planet

Environmental Achievements

• Achieved a 57% absolute reduction in corporate restaurant and office emissions (Scope 1 & 2) compared to 2019.
• Achieved a 28% reduction in per-restaurant emissions in franchisee restaurants (Scope 3) compared to 2019.
• Removed 94% of artificial coloring, 88% of artificial flavors, and 95% of PHOs from core food ingredients globally.

Social Achievements

• Launched business employee resource groups (BERGs) for women in 10 countries, and in 6 countries for LGBTQ+ employees and allies.
• Strengthened ability to unlock opportunity by supporting social impact programs across four brands.
• Committed approximately $50 million to help fund more than 30 social impact programs in 11 countries.

Governance Achievements

• Clarified how Good priorities factor into executive compensation.
• Began evaluating executive performance against more targeted environmental, social, and governance (ESG)-centric goals.

Climate Goals & Targets

Environmental Challenges

• Tracking and calculating emissions in food systems is difficult, especially regarding above-ground carbon cycles.
• Highly pathogenic avian influenza (HPAI) significantly affected egg-laying birds in many parts of the world.
• Data collection regarding waste is challenging.

Mitigation Strategies

• Working with partners on specific projects to define pathways for emissions reduction.
• Deep bench of suppliers in multiple geographies and biosecurity expectations of suppliers to protect birds from disease.
• Using sample data submitted by select countries and extrapolated, on a per-restaurant average basis, to provide a global view of waste.

Supply Chain Management

Supplier Audits: More than 50% of Yum! approved suppliers have achieved GFSI Recognized Certification to date. 6,000 core category supplier sites were pre-screened for indicators of inherent responsible sourcing risk.

Responsible Procurement

• Supplier Code of Conduct
• GFSI Recognized Certification

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB for Food & Beverage sector and Restaurant industry, TCFD

Third-party Assurance: Third-party assurance provider for greenhouse gas emissions and water withdrawals

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 7
• Goal 8
• Goal 12
• Goal 13

Alignment with UN SDGs is described in the Appendix.

Sustainable Products & Innovation

• Plant-based menu items
• Impossible™ burgers

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental
• Social
• Governance

Environmental Achievements

• Approximately 31% of fiber-based and 14% of plastic-based packaging and customer servicewares are from recycled sources.
• Donated over 2,400 MT of food waste across 34 countries in 2023.

Social Achievements

• 100% of Yum! employees, including our Board of Directors, are annually trained in anti-corruption practices.
• In the U.S., Yum! offers eligible birth mothers and fathers, and adoptive and foster parents who are restaurant area coaches and above, six weeks of paid time off under Yum!’s Baby Bonding Policy.
• Estimated that 91% of employees who returned from parental leave remained employed by the company 12 months after returning.

Governance Achievements

• There were no confirmed instances of corruption in 2023.
• There were no confirmed instances of anti-competitive behavior in 2023.

Climate Goals & Targets

Environmental Challenges

• Collecting waste data is challenging due to wide variation in global diversion infrastructure.
• High relative levels of inherent risk to human rights exist within our supply chain, predominately among suppliers operating within developing geographies and within the manufacturing and agriculture, forestry and fishing industries.

Mitigation Strategies

• Yum! is working to refine our data collection process and methodology for global estimates.
• Yum! is committed to strengthening our due diligence efforts with focus in these key areas, and annually, we require each of our suppliers to commit to our Supplier Code of Conduct annually.

Supply Chain Management

Supplier Audits: Over 70% of Yum! approved suppliers have achieved GFSI Recognized Certification

Responsible Procurement

• Supplier Code of Conduct
• GFSI Recognized Certification

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: American Institute of Certified Public Accountants (limited assurance for GHG emissions and water withdrawals)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed