Better Health for All
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Yum China demonstrates a growing focus on positive health impact with substantial investment.
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The company had no product recalls for safety and health reasons in 2024, and maintains 100% food safety and quality audit coverage for its restaurants, logistics centers, and employees.
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Over 80% of food ingredient and food-contact packaging suppliers obtained GFSI-benchmarked certifications in 2024.
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All KFC, Pizza Hut, and Taco Bell kids' meals meet Chinese Nutrition Society guidelines, and all products are free of trans fat.
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The company introduced ~600 new or upgraded menu items in 2024, including reduced-salt and reduced-calorie options, and eliminated 118 tons of salt from KFC products between 2018 and 2020.
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Yum China supports vulnerable populations through programs like the One Yuan Donation, which has funded over 58 million nutritious meals, and the KFC Little Migratory Birds Fund, benefiting over 6 million children.
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The company also supports over 1,700 employees with special needs through its "Angel Restaurants."
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It provides substantial mental health support for employees via its EAP online platform, "Daxin," and has reached over 140 million customers with nutritional knowledge through tray liners and other public health education initiatives.
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Yum China has strong data security measures, including MLPS, Grade 3 security, and ISO/IEC 27001 certifications, for its health-related data.
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Fair Money & Economic Opportunity
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Yum China Holdings Inc. is a restaurant company, not a financial institution. Consequently, most KPIs under 'Fair Money & Economic Opportunity' are not applicable to its core business, as they pertain to lending, financial products, or banking services. The company does not offer consumer credit products, manage customer finance data, or operate financial service access points, leading to a score of 0 for `underserved_client_share`, `pricing_fairness`, `exploitative_fee_exposure`, `inclusion_initiatives`, `data_accessibility`, `fair_lending_compliance`, `wealth_building_outcome`, `debt_burden_ratio`, `geographic_inclusion`, and `product_simplicity`. For `profit_reinvestment`, while Yum China has established an RMB 10 million Employee Mutual Aid Fund
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and contributed to programs like the One Yuan Donation (cumulatively over RMB 270 million raised)
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and the KFC Little Migratory Birds Fund (RMB 35 million+)
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, its annual pre-tax profit is not disclosed, preventing the calculation of the required percentage for this KPI, leading to its omission. Regarding `financial_literacy_initiatives`, the company's Youth Employability Program includes "financial management" education for people with disabilities and marginalized youth
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. However, the articles do not provide quantitative data on the reach or measured outcomes of these specific financial literacy components, thus this KPI is also omitted.
Fair Pay & Worker Respect
0
The company's CEO-to-median employee pay ratio was 1770:1 in 2024.
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In 2022, the company was recognized among 19 globally for having no gender pay gap.
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An employee rating of 84 out of 100 was reported in 2024.
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Furthermore, in 2023, there were no human rights complaints or complaints concerning non-compliance with human rights law.
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Fair Trade & Ethical Sourcing
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Yum China requires all suppliers to sign its Supplier Code of Conduct, with a 100% participation rate for key suppliers.
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The company conducts annual Corporate Social Responsibility (CSR) audits of all key suppliers, including significant tier-1 and non-tier 1 suppliers, by third-party professional agencies.
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In 2024, 428 suppliers were audited, covering 100% of key suppliers.
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Honest & Fair Business
30
Yum China Holdings Inc. reported no concluded legal cases regarding corrupt practices during the reporting period.
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The company holds an "Industry Highest Ranking" of "Low Risk" by Sustainalytics for ESG (2022-2024), indicating effective controversy management.
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Its whistleblower policy is comprehensive, featuring a 24/7 anonymous hotline, web platform, independent compliance hotline, strict non-retaliation, and a dedicated investigation team.
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All full-time employees completed annual training on the Code of Conduct in 2024, which includes procedures for reporting ethical concerns.
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The anti-corruption policy is robust, with a zero-tolerance stance, FCPA compliance, and applies to all directors, employees, and third-party representatives.
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It includes 100% annual training for full-time employees, a third-party due diligence system, and a Corruption Risk Assessment for acquisitions.
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Investigations into violations are conducted by dedicated teams and reported to the Audit Committee.
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Kind to Animals
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Yum China covers 100% of its critical suppliers with Corporate Social Responsibility (CSR) audits, which include compliance with animal welfare laws, regulations, and standards.
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Following these audits, there is a 100% submission rate for corrective and preventive action plans.
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The company demonstrates leadership in animal welfare policy by taking the lead in 2016 to remove antimicrobial drugs important to human medicine as growth-promoting agents in broiler feed.
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By 2020, Yum China guided 100% of its domestic chicken suppliers to comply with a related national plan from the Ministry of Agriculture and Rural Affairs ahead of schedule.
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In 2022, it released the third edition of the Broiler Breeding Technical Manual and the Guidelines for Managing and Administering Veterinary Drugs in Broiler Breeding.
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Yum China actively shares its views on animal welfare and veterinary drug management, promotes industry best practices, and collaborates with government and industry experts, including hosting visits by experts from the Ministry of Agriculture and Rural Affairs to its chicken suppliers in 2023.
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No War, No Weapons
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Yum China Holdings Inc. operates as a restaurant company, and its core business does not involve arms or defense-related activities, dual-use technologies with military applications, or controversial weapons. The company reported $0 in political contributions or spending in 2024.
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Its AI-enabled technology is used for civilian purposes such as resume screening, food safety monitoring, and customer service.
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The company joined the United Nations Global Compact in 2023, committing to its 10 principles, and has a Human Rights Policy introduced in 2022
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with ESG targets incorporated into leadership performance metrics and regular independent third-party human rights audits for suppliers.
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Yum China's Supplier Code of Conduct, updated in 2023, requires suppliers to abide by all applicable laws and regulations and fulfill social and environmental responsibility commitments.
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Annual third-party CSR audits are conducted with 100% online training participation and 100% submission and pass rates for key suppliers.
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Furthermore, 100% of full-time employees completed the Yum China Code of Conduct online training in 2024.
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Planet-Friendly Business
-50
Yum China Holdings Inc. reported total Scope 1, 2, and 3 greenhouse gas emissions of 12,492,861 tCO2e in 2024.
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The company's near-term science-based targets, approved by SBTi, aim to reduce absolute Scope 1 and 2 GHG emissions by 63% and Scope 3 GHG emissions from purchased goods by 66.3% per ton by 2035 from a 2020 baseline, aligning with a 1.5°C pathway.
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The stated net-zero target year for value chain GHG emissions is 2050, supported by these interim targets.
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In 2024, the company's renewable energy usage was 38,009 MWh, representing approximately 0.84% of its total electricity consumption.
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Total water consumption in 2024 was 26,086,762 m³.
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, which equates to approximately 2,964 m³ per $1 million in 2019 revenue. The waste diversion rate in 2024 was 38%.
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The company has a No Deforestation Commitment, with 100% of paper products sourced from deforestation-free suppliers and 100% of palm oil purchased being RSPO-certified and traceable.
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Additionally, 100% of soy used for soybean milk powder is traceable, and 100% of beef purchased has external quality or sustainability certifications.
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A targeted zero-deforestation strategy is currently under development.
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Yum China published a TCFD report in 2021
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and proactively identified climate-related risks and opportunities.
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The company has 70+ KFC Green Stores
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and one Renewable Energy Cold-Chain Logistics Center
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out of over 18,101 stores.
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Respect for Cultures & Communities
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Yum China Holdings Inc. sources over 99% of its suppliers locally from China by the end of 2024.
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The company engages in numerous formal partnerships with various foundations, institutes, and local government bodies for community-focused initiatives, including the China Foundation for Rural Development and the Chinese Nutrition Society - Yum China Dietary Health Foundation.
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No cultural appropriation incidents have been reported.
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Standard whistleblower mechanisms are available for employees and suppliers, encompassing an ethics hotline and reporting systems.
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Charitable giving, such as the One Yuan Donation program and KFC Little Migratory Birds Fund, is directed towards poverty alleviation, rural revitalization, and providing nutritious meals for children.
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Company reports are available in Simplified Chinese, Traditional Chinese, and English.
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No cultural incidents requiring a response have been mentioned.
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Safe & Smart Tech
-10
Yum China Holdings Inc. experienced a ransomware attack in January 2023, which compromised personal identifiable information (PII) of US employees, including names, driver’s license numbers, ID numbers, Social Security numbers, addresses, and dates of birth
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. This incident also led to the temporary closure of nearly 300 restaurants in the UK for one day
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. The company promptly disclosed the incident to the SEC
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and notified relevant US state regulators
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. Despite extensive use of AI in high-risk applications such as initial resume screening, interview scheduling, and operational analysis
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, there is no evidence of a formal AI ethics policy, dedicated oversight, or systematic bias monitoring and mitigation mechanisms. On the positive side, the company explicitly complies with China's Personal Information Protection Law, Data Security Law, and Cybersecurity Law
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, and conducts periodical risk assessments and compliance audits
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. In 2024, it received no administrative or criminal punishment or civil litigation concerning breaches of customer privacy regulations
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. Its KFC China and Pizza Hut China SuperApp and official websites have passed China's Multi-Level Protection Scheme (MLPS) and achieved a Grade 3 security level from the Ministry of Industry and Information Technology
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. Their information security management systems have also passed ISO/IEC 27001 annual audits
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. In 2024, 100% of full-time employees completed required data security training
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. The company states it limits data collection to the minimum scope required
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and retains personal data only as long as needed
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, with data subjects entitled to access, obtain, rectify, delete, and withdraw their personal data
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. It uses encrypted transmission via SSL networks and encrypted storage of information, applying encryption for sensitive personal data
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. The company conducts regular vulnerability assessments and penetration tests
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, actively monitors cybersecurity risks
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, and regularly tests its incident response plan
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.
Zero Waste & Sustainable Products
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Yum China achieved a 38% waste diversion rate in 2024.
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The company has made 100% of its customer-facing plastic-based packaging recyclable as of the end of 2021.
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Yum China integrates circular economy principles into daily operations, adhering to 4R principles, exploring zero-waste restaurant models, and implementing reuse initiatives like reusable serving baskets.
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The company states it does not produce hazardous waste due to its business features and has no mentioned waste disposal violations, strictly following regulations.
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Yum China has set targets including a 10% reduction of food waste per restaurant by 2030 from a 2020 baseline, a 30% reduction in non-degradable plastic packaging weight by 2025 from a 2019 baseline, and 100% FSC-certified paper packaging by 2025.
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Waste reduction initiatives include expanding coffee grounds recycling to 8,700 restaurants, recycling 2,000 tons in 2024, and converting nearly 50% of used cooking oil into biodiesel in 2024.
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The KFC coffee grounds recycling system received a 'Gold Award' in 2024.
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Yum China refuses to purchase paper products from suppliers that knowingly cause deforestation and encourages suppliers to adopt regenerative agricultural practices, including waste disposal.
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Customer education programs, such as the KFC 'Virtual Green Store,' reward participants for low-carbon behaviors like waste sorting and opting out of single-use tableware, with over 29 million cumulative participants.
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