Yum China

Lobbying and advocacy
The company discloses a list of trade associations of which it is a member wherever it operates.

Stakeholder engagement
The company discloses an overview of the issues raised during its regular and ongoing stakeholder engagement activities as well as the engagement channels, for each stakeholder group.

Sustainable development strategy
The company discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy.

Scope 1, 2, and 3 greenhouse gas (GHG) emissions
The company is committed to reducing its scope 1 and 2 greenhouse gas emissions, and has set a specific target within a defined timeframe. It also reports on its progress towards achieving these scope 1 and 2 targets. Furthermore, the company’s emissions targets for both scope 1 and 2 are in line with a 1.5-degree trajectory. Additionally, the company is actively reducing its scope 3 greenhouse gas emissions.

Ecosystem conversion
The company discloses some activities to achieve conversion-free supply chains.

Plastic use and packaging waste
The company is committed to reducing plastic use and transitioning to sustainable packaging. They demonstrate this commitment through their policies and participation in related activities. Furthermore, the company provides quantitative data to disclose their progress in reducing plastic use and adopting sustainable packaging.

Water withdrawal
The company demonstrates reducing water withdrawal in its own operations.

Availability of nutritious foods
The company discloses its commitment to reduce salt and sugar in its food products by 2030. Additionally, it states that 100% of KFC, Pizza Hut, and Taco Bell products are free of trans fat originating from hydrogenated/partially hydrogenated oils.

No leading practices were identified in the social inclusion area.

Act ethically
The company has a policy prohibiting bribery and corruption, and incorporates anti-bribery and anti-corruption clauses in its contracts with direct business relationships.

Provide and promote decent work
The company has a publicly available policy statement in which it commits to respecting the health and safety of workers. It extends this commitment to its business relationships, and reveals how it monitors their health and safety performance.

Furthermore, the company discloses the proportion of its workforce for each employee category by age group and by gender. Moreover, the company publicly commits to gender equality and women’s empowerment, and reports a 30% representation of women on the board.

Respect human rights
The company indicates it has a human rights grievance mechanism accessible to all workers.

Governance and accountability for sustainable development
The company discloses a remuneration policy related to ESG but can further link this policy to improvement in nature-related objectives and social issues. Furthermore, there is an opportunity for the company to disclose whether its highest governance body has specific expertise with respect to the company’s most material sustainability topics.

Lobbying and advocacy
The company has an opportunity to disclose a clear and detailed framework for assessing alignment of its trade associations with its sustainability targets. Additionally, it can report any (potential) misalignments between the lobbying activities of its trade associations and its sustainability targets.

Sustainable development strategy
The company discloses some sustainability objectives/targets including climate but could further establish group-wide targets for the most material parts of its value chain. Furthermore, while it reports consistently against some targets including climate, it has an opportunity to report consistently against all its targets.

Scope 1, 2, and 3 greenhouse gas (GHG) emissions
The company discloses its target to reduce its scope 3 GHG emissions from purchased goods 66.3% per ton of goods purchased by 2035 from a 2020 base year. However, the target does not cover all its scope 3 emissions. The company has an opportunity to report progress against these scope 3 targets. The company’s scope 3 emissions targets have an opportunity to be aligned with a 1.5-degree trajectory.

Animal welfare
The company has an opportunity to set animal welfare targets applicable to all species, geographies and products.

Ecosystem conversion
The company does not have time-bound targets to achieve conversion-free supply chains.

Food loss and waste
Although the company discloses its targets for reducing food loss and waste (FLW), it does not track its progress against these targets. However, there is an opportunity for the company to align its reduction goals with SDG12.3, which aims for a 50% reduction in FLW by 2030.

Protein diversification
The company has an opportunity to set a sales-based target to increase alternative proteins across its portfolio, as well as report progress against this target.

Availability of nutritious foods
The company has an opportunity to adopt a nutrient profiling system that aligns with government-endorsed or externally validated nutritional guidelines and to set a sales-based target to increase the percentage of more nutritious food offerings.

Clear and transparent labelling
The company has an opportunity to disclose how it provides nutritional information on its products and how it supports consumers with making healthy food choices through its labelling schemes.

Food safety
The company has an opportunity to disclose its commitment to food safety and demonstrate that its operations and supply chain adhere to food safety standards.

Responsible marketing
The company can provide evidence of marketing activities to promote heathier and more nutritious food options (in accordance with a government-endorsed or externally validated nutritional guidelines). Moreover, it has an opportunity to disclose a responsible marketing policy specifically tailored to children that is aligned with international codes and guidelines and applicable across all media channels.

Child labour
The company has the opportunity to showcase examples of remediation programs when instances of child labor are discovered in its operations. It can also highlight how it is working towards enhancing the capabilities of its suppliers to prevent child labor-related issues. Although the company strictly forbids its suppliers from employing child labor, it could additionally mandate the implementation of an age-verification system.

Farmer and fisher livelihoods
The company has an opportunity to identify living income benchmarks and assess living income gaps for some commodities and regions. Also, it could adopt procurement practices and develop supply chain relationships that improve farmers’ income resilience.

Forced labour
While the company does not allow suppliers to retain workers’ personal documents, it has an opportunity to disclose similar commitments for its operations. Furthermore, it could prohibit the payment of recruitment fees or related costs in its value chain. To conclude, the company has an opportunity to indicate how it is building the capacity of its suppliers to prevent forced labour impacts.

Health and safety of vulnerable groups
The company has an opportunity to recognise and assess the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers. Furthermore, it could provide evidence of support activities that improve the health and safety of vulnerable groups.

Living wage
The company has an opportunity to set a target for paying a living wage across its direct suppliers and describe how it determines a living wage for the regions where it sources. Also, it could disclose the percentage of workers across its own operations or suppliers that are paid a living wage.

Act ethically
While the legal department oversees its anti-corruption policy, and the internal audit department, in conjunction with the legal department, investigates violations of the policy, there is an opportunity for the company to describe its process for identifying its bribery and corruption risks. Additionally, although the company has a mechanism for stakeholders to raise related concerns, it could clarify whether this mechanism is accessible to all stakeholders and if complainants have the option to reveal their identity or report anonymously.

Furthermore, the company could create a policy outlining its lobbying and political engagement approach. While it states that it makes political contributions only with approval from the Chief Legal Officer, it could disclose whether these contributions are made only under exceptional circumstances, and reveal the criteria for making these exceptions. The company could also disclose its expenditures related to lobbying activities.

Provide and promote decent work
While the company states that it provides compensation above the regulatory minimum wage standards, it has an opportunity to commit to paying a living wage by setting a time-bound target. It could also disclose how it determines a living wage for the regions where it operates. Additionally, while the company has set expectations on the wage paid by its suppliers, it has an opportunity to add a requirement for them to pay a living wage, and disclose how it supports the payment.

Furthermore, although the company discloses that it has achieved its gender-related goals in 2022, the company has an opportunity to disclose renewed time-bound targets. The company could also report information including the ratio of the basic salary and remuneration of women to men.

Respect human rights
The company has an opportunity to disclose a policy statement committing it to respect human rights. While the company discloses statements committing it to respect the ILO’s fundamental rights at work in its operations and supply chain, it has an opportunity to use stronger language to turn these statements into a formal commitment.

Furthermore, while the company proactively identifies, prevents and mitigates human rights risks, it can elaborate on its process for identifying its human rights risks and impacts within its operations and supply chain. The company could also outline its process for assessing and identifying its salient human rights issues. Moreover, the company could disclose a global system to act on, prevent or mitigate its salient human rights issues.