2024 Sustainability Report Showcases Yum China's Consistent Commitment to ESG

Core Viewpoint - Yum China Holdings, Inc. has published its 2024 Sustainability Report, highlighting its achievements and ongoing progress in sustainability across three focus areas: People, Environment, and Food [1]. Group 1: People - The company emphasizes a "People First" philosophy, focusing on supporting frontline staff and enhancing their operational efficiency through digital tools [3]. - By the end of 2024, Yum China awarded Restricted Stock Units (RSUs) to over 14,700 Restaurant General Managers (RGMs) to ensure high-performing RGMs have a stake in their collective accomplishments [3]. - The company is committed to preparing employees for the future by offering new courses on AI tools and sponsoring over 6,800 employees for higher educational qualifications [3]. Group 2: Environment - Yum China is actively pursuing a low-carbon transition, achieving a 370% year-over-year increase in renewable energy usage and an ~8% average carbon footprint reduction per restaurant in 2024 [3]. - The Yum China DPV & VPPA Alliance collectively achieved 270,000 MWh of renewable energy usage in 2024, sharing resources on green energy transformation with key suppliers [3]. - The company innovated to reduce food waste, recycling approximately 2,000 tons of coffee grounds in 2024 by expanding its collection network to about 8,700 restaurants [3]. Group 3: Food - In response to China's 'Healthy China 2030 Plan', Yum China developed menu items with reduced sugar and salt content, including KFC's Reduced-Salt Original Recipe Chicken Sandwich and Pizza Hut's reduced calorie Energy Bowl [3]. - The company leverages its food innovation capabilities and extensive supplier resources to create healthier menu options [3]. Group 4: Recognition and Awards - Yum China was ranked industry No.1 in the S&P Global Corporate Sustainability Assessment and included in the Dow Jones Sustainability World Index for the fifth consecutive year [4]. - The company achieved the highest ranking ("AA") in MSCI ESG rating and was named a "China Top Employer" for the seventh consecutive year, ranking No. 2 overall in China [4].