Yum China Releases 2024 Sustainability Report

Yum China Holdings, Inc. (NYSE: YUMC and HKEX: 9987) today issued its 2024 Sustainability Report, reporting progress on its environmental, social, and governance (ESG) objectives. The report highlights key successes in the three overarching areas of focus: People, Environment, and Food, as the company continues to advance toward a sustainable and inclusive future.

In 2024, Yum China reaffirmed its "People First" philosophy through initiatives aimed at empowering frontline employees and boosting workforce engagement. One of the main efforts was through streamlining operations and equipping restaurant general managers (RGMs) with enhanced digital tools and operational assistance. Some of the innovations involved centralized recruitment programs as well as the integration of artificial intelligence to screen resumes and schedule interviews. Because of this, RGMs could redirect more attention toward customer service while enjoying a more streamlined work environment.

To further recognize and encourage high-performing managers, the company granted Restricted Stock Units (RSUs) to more than 14,700 RGMs at the end of the year. In accordance with its vision of creating a future-proof workforce, Yum China also increased access to education, providing AI-related training and sponsoring over 6,800 employees to obtain diplomas, degrees, and professional certifications.

Environmental sustainability continued to be a key area of emphasis in 2024, with Yum China stepping up its low-carbon journey. The company achieved a 370% year-over-year growth in the use of renewable energy, which helped drive an estimated 8% decrease in average carbon footprint per restaurant from the prior year. Through its DPV & VPPA Alliance, Yum China also facilitated renewable energy initiatives among suppliers, with the alliance collectively consuming 270,000 megawatt-hours (MWh) of renewable energy in 2024.

The firm went on to innovate in the field of waste management and green material use. It grew its coffee grounds recycling network to about 8,700 restaurants, recycling almost 2,000 tons of waste coffee grounds. The program also looked into using recycled materials to create new products, an initiative that showed Yum China's dedication to circular economy principles.

Food innovation continued to be a pillar of Yum China's sustainability agenda. In reaction to China's "Healthy China 2030" and National Nutrition Plan (2017–2030), the company launched menu items aimed at promoting healthier living. They featured KFC's Reduced-Salt Original Recipe Chicken Sandwich, Pizza Hut's lower-calorie Energy Bowl, and Taco Bell's Beef Power Bowl, each with reduced sugar and salt content without sacrificing taste.

Yum China also kept funding philanthropic activities addressing rural revitalization, health activism, and care for people. Its signature "One Yuan Donation" program entered its 17th year and has raised a total of over RMB 270 million. The funds have benefited over 58 million healthy meals for children in poor areas and improved kitchen conditions in over 1,500 rural schools throughout China.

CEO Joey Wat reiterated the company's commitment to ethical, responsible practices amid the changing sustainability environment. "In 2025 and beyond, Yum China will keep working hand in hand with stakeholders to make progress on our sustainability objectives. While we pursue opportunities and drive shareholder value, we stay rooted in ethical, responsible practices – motivated by our ambition to create a more sustainable world for everyone," she stated.

Yum China's ongoing dedication to ESG excellence has not been overlooked. The company ranked No. 1 in its sector in the S&P Global Corporate Sustainability Assessment (CSA) and was named to the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability Emerging Markets Index (DJSI Emerging Markets) for the fifth straight year. Significantly, Yum China is the sole consumer services firm from mainland China to be included in the DJSI World.

Additional accolades followed with the firm achieving an "AA" rating in the MSCI ESG assessment, the best in its sector. Moreover, the Top Employers Institute certified Yum China as a "China Top Employer" for the seventh year running, placing the firm second in the nation overall.

As it moves forward, Yum China will build on these milestones, continuing to incorporate sustainability into all levels of its business while delivering long-term value to employees, customers, and stakeholders.

To read Yum China's 2024 Sustainability Report in detail, go to: https://www.yumchina.com/sustainability/en/home/Index.