Yum China Demonstrates Commitment to Sustainable Practices

Yum China's Ongoing Commitment to Sustainability

Yum China Holdings, Inc. (NYSE: YUMC) has unveiled its latest Sustainability Report, serving as a testament to the company's unwavering commitment to environmental, social, and governance (ESG) initiatives. This report highlights the progress the company has made in its sustainability goals, organized around three primary pillars: People, Environment, and Food.

Empowering Employees for Future Success

At the heart of Yum China's philosophy is a robust commitment to putting people first. The company places a significant emphasis on empowering its Restaurant General Managers (RGMs). By integrating digital tools and enhancing operational practices, Yum China enables RGMs to manage daily tasks with greater efficiency, thereby allowing them to devote more time to providing excellent customer service. Recent innovations include centralized recruitment processes and AI technologies for streamlining the hiring process.

Recognition for Employee Development

In a bid to foster a future-ready workforce, Yum China awarded over 14,700 Restricted Stock Units (RSUs) to its high-performing RGMs by the end of the reporting period. The company is dedicated to nurturing employee growth by offering numerous training programs focused on artificial intelligence and providing sponsorships to more than 6,800 employees pursuing higher education and professional qualifications.

Transitioning to Sustainable Energy Sources

Yum China is making significant strides in its low-carbon transition by actively pursuing energy efficiency and renewable energy solutions. In 2024, the company reported a remarkable 370% increase in renewable energy utilization from the previous year, coupled with approximately an 8% reduction in carbon emissions per restaurant. To facilitate a broader impact, Yum China also collaborates with suppliers through the Yum China DPV & VPPA Alliance, collectively achieving a substantial 270,000 MWh of renewable energy consumption in 2024.

Innovations in Food Sustainability

In its quest to minimize food waste and promote sustainable practices, Yum China continually innovates in material usage and recycling methods. The expansion of the coffee grounds collection network across roughly 8,700 restaurants enabled the recycling of nearly 2,000 tons of coffee grounds in 2024. By investigating the use of recycled materials in various products, the company is paving the way for a greener future.

Healthy Menu Choices for Customers

Responding to national health initiatives, Yum China has developed healthier menu options that align with the Healthy China 2030 plan. Notable offerings include the Reduced-Salt Original Recipe Chicken Sandwich from KFC, the calorie-conscious Energy Bowl from Pizza Hut, and Taco Bell's Beef Power Bowl, all designed to cater to health-conscious consumers.

Community Engagement and Philanthropy

Yum China's charitable efforts focus on rural revitalization, health advocacy, and community support. The company's flagship program, "One Yuan Donation," has made significant progress over its 17-year duration, raising over RMB 270 million by the end of 2024. This initiative has funded more than 58 million nutritious meals for children in underprivileged areas and modernized facilities at over 1,500 rural schools.

External Recognition of Sustainability Efforts

Yum China has garnered considerable acclaim for its sustainability initiatives. In 2024, the company was recognized as the industry leader in the S&P Global Corporate Sustainability Assessment (CSA) and has consistently been featured in the Dow Jones Sustainability World Index for five consecutive years. Additionally, Yum China's commitment to excellence earned it an “AA” rating, the highest ranking in MSCI ESG rating.

Conclusion

As Yum China continues to navigate the complexities of sustainability, the company remains steadfast in its mission to balance diverse stakeholder needs while enhancing value for shareholders. With plans for ongoing collaboration and innovation, Yum China is determined to drive sustainable growth while adhering to ethical practices.

Frequently Asked Questions

What are the primary focus areas of Yum China's Sustainability Report?

The report emphasizes three key areas: People, Environment, and Food, showcasing the company's commitment to these pillars.

How does Yum China empower its Restaurant General Managers?

By providing digital tools and centralizing recruitment processes, Yum China enables RGMs to focus more on customer service, enhancing operational efficiency.

What renewable energy initiatives has Yum China implemented?

Yum China has increased its renewable energy usage significantly and collaborates with suppliers to achieve collective renewable energy consumption goals.

How does Yum China contribute to community welfare?

The company engages in various philanthropic initiatives, raising funds for nutritious meals and improving facilities in rural schools through its donation programs.

What recognitions has Yum China received for its sustainability efforts?

Yum China has been ranked highly in several sustainability assessments, receiving awards and recognition for its initiatives in the restaurant industry.

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