Yum China Releases First TCFD Report, Advancing its Commitment to Climate Action
Yum China Holdings, Inc. released its first climate-focused report in accordance with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations. Aligned with Yum China’s commitment to driving towards net-zero value chain GHG emissions by 2050, the Company outlines in the report its approach to addressing climate-related risks and opportunities and highlights key progress it has made on climate action.
“At Yum China, we recognize potential risks and opportunities across the value chain brought by climate change. We are fully committed to the positive role we can play in the transition to a lower-carbon economy,” said Joey Wat, CEO of Yum China. “Yum China’s first TCFD report is an important step towards enhancing the climate resilience of our business model. Moving forward, we will continue to work closely with all our stakeholders to make meaningful progress towards a more sustainable future.”
The report is structured around the four TCFD pillars: Governance, Strategy, Risk Management, and Metrics and Targets.
- Governance – Yum China’s systematic and comprehensive sustainability governance mechanism helps ensure that climate-related matters are managed from the Board to the operations teams.
- Strategy – Yum China has identified transition and physical risks and conducted climate-related scenario analysis to assess the potential impact of those material risks on the Company’s businesses under hypothetical climate futures. In turn, this helps guide the Company’s strategic planning and risk management.
- Risk Management – Yum China has conducted risk screening, and disclosed how climate-related risks are effectively addressed within its existing risk management measures in four aspects: restaurants, supply chain, logistics, and product and services.
- Metrics and Targets – Yum China has developed a GHG emissions inventory across the entire value chain including upstream, downstream, and own operations, in accordance with the latest Greenhouse Gas Protocol. The Company uses the GHG emissions inventory as the basis to develop GHG emissions reduction targets. On June 8, 2022, Yum China submitted its near-term science-based GHG emissions reduction targets to Science Based Target initiative for validation.
The publication of the report is in line with the Company’s ongoing efforts to enhance transparency on climate action, adding further context and disclosures to previous Sustainability and CDP reports.