GlobalData offers a comprehensive analysis of Yum China, providing key insights into its Environmental, Social, and Governance(ESG) factors. By closely monitoring and aggregating mentions of climate change and associated ESG keywords, GlobalData delivers valuable information on Yum China’s ESG performance. GlobalData’s company profile on Yum China offers a 360-degree view of the company, SWOT analysis, key financials, and business strategy including insights on ESG implementation among other information. Buy the report here.

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Yum China, the parent company of popular fast-food chains such as KFC, Pizza Hut, and Taco Bell, has set target for net zero by 2050 for reducing its greenhouse gas (GHG) emissions. The company is taking steps to reduce emissions across all three scopes. Scope 1 emissions, which include direct emissions from owned or controlled sources, are being addressed through the conversion of used cooking oil (UCO) into biodiesel in the Sichuan Biodiesel Project. The amount of UCO converted into biodiesel in 2022 is mentioned as a measure of progress. In 2022, the company’s direct (Scope 1) GHG emissions reported was 165,197 tCO2e, scope 2 emissions were 1,740,134 tCO2e and scope 3 GHG emissions was 8,198,807 tCO2e.

Scope 2 emissions, which are indirect emissions from the consumption of purchased electricity, are being tackled by Yum China through the use of average national carbon dioxide emission factors of the power grid. The company is calculating its energy indirect (Scope 2) GHG emissions based on the electricity consumption of its restaurants and applying these emission factors. Yum China is also addressing Scope 3 emissions, which are indirect emissions from sources not owned or controlled by the company. The majority of its energy indirect (Scope 2) GHG emissions come from electricity consumption, and the company is using the average national carbon dioxide emission factors of the power grid to calculate these emissions.

The company strongly endorses the long-term objectives of the Paris Agreement, which aims to restrict the global average temperature increase to 1.5°C above pre-industrial levels. Furthermore, the company fully supports the commitment of the Chinese government to attain peak carbon emissions by 2030 and achieve carbon neutrality by 2060. The company has set ambitious targets, aiming for a 63% reduction in absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 2035 from a 2020 baseline. Additionally, there is a target of a 66.3% reduction in Scope 3 GHG emissions from purchased goods per ton of goods purchased by 2035 from a 2020 baseline, and these targets have received approval from the Science Based Targets initiative as Near-term Targets. Yum China is actively working towards reducing its emissions through various initiatives. The company has invested in the Sichuan Biodiesel Project and is using emission factors for natural gas consumption in its Little Sheep and Huang Ji Huang restaurants. The Global Warming Potential (GWP) of refrigerant is also being considered in emission accounting.

In conclusion, Yum China has set net-zero targets for reducing its GHG emissions and is taking steps to address emissions across all three scopes. The company is converting UCO into biodiesel, using emission factors for electricity and natural gas consumption, and considering the GWP of refrigerant. Yum China is actively working towards its net-zero goals.

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