QSR Brands (M) Holdings Bhd

Climate Impact & Sustainability Data (2022-01 to 2023-12)

Reporting Period: 2022-01 to 2023-12

Environmental Metrics

Total Carbon Emissions:302,605 t CO2e/year (average 2022-2023)

Scope 1 Emissions:12,493 t CO2e/year (2022); 11,843 t CO2e/year (2023)

Scope 2 Emissions:281,212 t CO2e/year (2022); 299,663 t CO2e/year (2023)

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:1,600,003 GJ/year (2022); 1,712,289 GJ/year (2023)

Water Consumption:4,868,366 m3/year (2022); 4,614,779 m3/year (2023)

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Environmental Resilience
People Oriented
Food Value
Data Driven
Corporate Governance

Environmental Achievements

Signed a Memorandum of Agreement (MoA) with Seido Solutions Sdn Bhd to improve energy efficiency at restaurants.
Implemented an energy conservation measures (ECM) programme since 2013, transitioning to LED lights and adopting energy-efficient systems.
Sold used cooking oil for recycling into biodiesel since 2019.
Partnered with Kechara Soup Kitchen since 2019 for Yum!'s Harvest programme, donating over 6,000 kg of unsold food.

Social Achievements

Launched the Earned Wage Access (EWA) programme in 2022.
Launched flagship talent development programme, GROW, in 2022.
Launched a micro-credential degree programme in partnership with Universiti Sains Malaysia (USM) in 2023.
Employs people with disabilities (PWDs) since 1982, with dedicated Community Care Restaurants.

Governance Achievements

Established a dedicated Board Sustainability Committee (BSC) in November 2021.
Conducted first Anti-Bribery and Corruption (ABAC) and Conflicts of Interest Notification and Declaration exercise in 2022.
Launched annual Corporate Governance and Integrity Day and online anti-corruption training in 2023.
Updated Whistleblowing Policy & Procedures in 2022.

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Not disclosed

Short-term Goals:

Enroll more outlets in the ECM programme in 2024.
Replace plastic cutlery with paper or wood-based alternatives by end of 2025.

Environmental Challenges

Energy-intensive operations.
Supply chain disruptions (e.g., limited availability of imported items in 2022).
Post-COVID-19 employee retention challenges.
Allegations of mistreatment of migrant workers at Ayamas in 2023.

Mitigation Strategies

Expanding ECM programme with Seido Solutions.
Menu adjustments to address supply constraints.
Multifaceted approach to employee retention (GROW programme, competitive benefits).
Investigation and rectification of misinformation regarding migrant worker treatment, working with authorities and stakeholders.

Supply Chain Management

Supplier Audits: Regular internal and external audits; Yum! Brands audits.

Responsible Procurement

Prioritising local suppliers (over 70% of spending); requiring Yum! Brands FSQA compliance and GFSI-recognised certifications.

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather

Transition Risks

Regulatory changes, market shifts

Opportunities

Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (2021), GRI 13: Agriculture, Aquaculture, and Fishing Standards (2022), Bursa Malaysia Sustainability Reporting Guide (3rd Edition)

Certifications: Null

Third-party Assurance: Grant Thornton Consulting Sdn Bhd (limited assurance)

UN Sustainable Development Goals

QSR's initiatives contribute to these SDGs through community support, food accessibility, employee development, diversity and inclusion, labour practices, digitalisation, waste management, climate action, ethical conduct, and transparency.

Sustainable Products & Innovation

Ayamas Kitchen brand (healthy cooking essentials).

Awards & Recognition

Putra Brand Awards (PBA) 2022 (KFC Malaysia); National Occupational Safety and Health Award 2023 (KFC Bachok).