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Yum China's 2024 Sustainability Report Highlights

Yum China Holdings, Inc. has once again demonstrated its unwavering commitment to sustainability through its recently published 2024 Sustainability Report. This year's report emphasizes the company's ongoing progress across key areas: People, Environment, and Food. This focus aims to elevate the company's role within the fast-food and casual dining sectors while adhering to its elite standards of corporate responsibility.

People-Centric Philosophy

At the heart of Yum China’s efforts lies its dedication to the 'People First' philosophy. The company continues to acknowledge the critical role its frontline staff play in delivering exceptional customer service. To effectively support its 14,700 Restaurant General Managers (RGMs), Yum China has implemented operational improvements and embraced digital solutions that streamline routine management tasks. For instance, using advanced AI technology for initial resume screening and interview scheduling has facilitated a more efficient hiring process.

Moreover, to ensure that high-performing RGMs are rewarded for their contributions, Yum China has structured performance-based incentives such as Restricted Stock Units (RSUs). These initiatives empower RGMs and promote a culture where employees feel valued and prepared for future challenges. Beyond immediate operational improvements, the company has committed to equipping its workforce with essential skills for the digital age, sponsoring over 6,800 employees for higher education and professional development.

Environmental Initiatives

Yum China is also accelerating its low-carbon transition, showcasing significant advancements in energy management. The company reported a remarkable 370% increase in renewable energy usage compared to the previous year, translating into an approximate 8% average reduction in the carbon footprint per restaurant. This achievement is part of a broader sustainability strategy that includes collaboration with suppliers through the Yum China DPV VPPA Alliance—a partnership that collectively achieved 270,000 MWh of renewable energy usage in 2024.

To further bolster its sustainability goals, Yum China continues to address food waste actively. The company implemented an expanded coffee grounds collection network, which now encompasses around 8,700 restaurants, successfully recycling around 2,000 tons of coffee grounds. These grounds are being explored for use in products aimed at promoting sustainability and reducing overall waste.

Healthy Menu Innovations

In line with the Chinese government's 'Healthy China 2030 Plan,' Yum China has taken strides to enhance the nutritional profile of its menu offerings. By leveraging its vast food innovation capabilities, the company has introduced products like KFC’s Reduced-Salt Original Recipe Chicken Sandwich and Pizza Hut’s calorie-conscious Energy Bowl. These options cater to health-conscious consumers and align with national nutrition objectives for reduced sugar and salt intake.

Philanthropic Efforts

Yum China remains committed to community engagement through its philanthropic initiatives focusing on rural revitalization, health advocacy, and community care. The flagship 'One Yuan Donation' program, now in its 17th year, has raised over RMB 270 million by the end of 2024, contributing significantly to funding more than 58 million nutritious meals for underprivileged children across rural areas. This program has also played a vital role in upgrading kitchen facilities at over 1,500 rural schools.

Industry Recognition and Future Goals

The company’s notable achievements in sustainability have not gone unnoticed; Yum China was recognized as the industry leader in the SP Global Corporate Sustainability Assessment and has maintained its place in the Dow Jones Sustainability World Index (DJSI World) for five consecutive years. Additionally, it attained an 'AA' rating in the MSCI ESG rating and has been named a 'China Top Employer' for seven consecutive years.

Looking ahead, CEO Joey Wat emphasized the necessity of innovative solutions that not only address sustainability but also consider all stakeholders involved, including employees, customers, and partners. Yum China is poised to engage with all parties as it aims to achieve its sustainability goals while delivering shareholder value through ethical practices that drive the vision of a more sustainable future for everyone.

For more insights into Yum China's sustainability efforts, you can visit their official website to review the complete 2024 Sustainability Report and stay informed about their ongoing commitment to environmental, social, and governance standards.