Yum China

No leading practices were identified for the company in the governance and strategy measurement area.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
The company discloses its process for prioritising its most relevant sustainability topics based on a materiality assessment conducted in 2017. While it has set some targets for these topics, the company can improve by ensuring these cover issues across environment, nutrition and social inclusion.

Governance and accountability for sustainable development
Yum China states that its board of directors oversees the framework of its sustainability strategy and ESG outcomes. The company has an opportunity to disclose its remuneration policy regarding sustainability, and ensuring that it covers sustainability topics across environment, nutrition and social inclusion.

Stakeholder engagement
The company discloses the outcomes of its stakeholder engagement activities related to sustainability, and how they are integrated into its sustainability strategy. Engagement covers topics across all three benchmark dimensions. It has an opportunity to disclose its process for identifying relevant stakeholders.

Scope 1 and 2 greenhouse gas emissions
While the company does not disclose its scope 1 and 2 greenhouse gas (GHG) emissions, it has set a target to reduce average restaurant energy consumption and GHG emissions by another 10% by 2025. The company has an opportunity to disclose quantitative evidence to demonstrate progress against this target.

Protection of terrestrial natural ecosystems
While Yum China states that it only purchases RSPO-certified palm oil, it has an opportunity to increase its disclosure on commitments to source all of its high-risk commodities through recognised certification programmes.

Protein diversification
Yum China has offered plant-based products, such as plant-based nuggets and burgers, in 2019 and 2020. However, it has an opportunity to strengthen its commitment by setting targets to increase the production or consumption of alternative proteins.

Food loss and waste
Yum China set a goal to reduce food loss and waste (FLW) and it reports some evidence of doing so, such as through investing in innovative oil-saving equipment. However, it has an opportunity to disclose quantitative data to demonstrate that it is reducing food loss and waste in its own operations and supply chain.

Plastic use and packaging waste
The company has set a goal to make all customer-facing, plastic-based packaging, recyclable. While it discloses some examples of how it is doing so, the company can improve by setting a time-bound target to transition to more sustainable forms of packaging and reporting progress against the target.

Animal welfare
While the company has an animal welfare policy that addresses some key issues, it can strengthen this policy by ensuring it applies to all key species, geographies and products that are relevant to the company.

Availability of healthy foods
While the company states that it advocates for less intake of sugar and that it has increased the use of grains, fruits, vegetables and beans, it has an opportunity to disclose the activities that contribute to increasing the production, quality and variety of healthy and nutritious foods.

Clear and transparent labelling
The company does not disclose that it provides nutritional information through clear, transparent and accurate labelling.

Responsible marketing
The company does not disclose a responsible marketing policy, nor guidelines specific to marketing to children.

Food safety
The company does not disclose evidence of ensuring safe food for consumers through compliance with national regulations and/or the Codex General Principles of Food Hygiene, nor an effective food safety certification scheme.

Child labour
While the company commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard, it has an opportunity to disclose a policy requiring its suppliers to have an age-verification system in place.

Forced labour
While the company commits to prohibiting forced labour in its own operations and supply chain, it has an opportunity to disclose a requirement that prohibits its suppliers from restricting workers’ freedom of movement.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Health and safety of vulnerable groups
The company does not disclose that it specifically recognises the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers.

Farmer and fisher productivity and resilience
While the company has a commitment to support the resilience, productivity and access to markets for farmers it has an opportunity to disclose evidence of related activities.

No policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems to respect basic human rights in its operations and supply chain.

Yum China publicly commits to respecting the health and safety of its workers, as well as to gender equality and women’s empowerment, as it has been a WEP signatory since 2019. No further policies or commitments related to decent work were found in the public domain. As such, the company does not demonstrate that it provides secure, safe, and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision making.

No policies or commitments related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.