We firmly support the long-term goals of the Paris Agreement to limit the global average temperature increase to 1.5°C above pre-industrial levels and fully endorse the Chinese government's commitment to reach peak carbon emissions by 2030 and achieve carbon neutrality by 2060. In 2021, we submitted our Business Ambition for 1.5°C Commitment Letter to Science Based Targets initiative (SBTi), demonstrating our determination to reach net-zero value chain GHG emissions by 2050. We set near-term GHG emissions reduction targets based on the leading climate scientific consensus and our targets were officially approved by SBTi in 2022, marking Yum China the first restaurant company in China to reach this milestone.As part of our commitment to the SBTi, we continuously strive to drive the reduction of GHG emissions across our value chain. In January 2024, we submitted our net-zero SBTs, affirming our dedication to achieving net-zero emissions throughout our entire value chain by 2050.
To realize our abatement targets, we developed a roadmap for our low-carbon transformation based on SBTi suggestions, focusing on energy efficiency improvement, renewable energy investment , and supplier engagement.
Our sustainability priorities place climate action at the forefront. Achieving our ambitious goals will demand substantial effort and require us to collaborate closely with stakeholders throughout our value chain.
We have taken a systematic and methodical approach to measure GHG emissions across our entire value chain, in accordance with GHG Protocol and SBTi manuals. Our GHG emissions inventory covers our own operations and 12 out of 15 relevant Scope 3 categories across the value chain, effectively helping us identify the main sources of GHG emissions and continuously track the abatement progress.
Energy Efficiency
Renewable Energy
Supplier Engagement
Energy-efficient operations of our restaurants have been a long-term priority in our efforts to reduce GHG emissions. We continuously develop and deploy high-efficiency equipment and facilities and apply technology to develop digital, automated, and smart restaurants. Meanwhile, our effective management practices also help to improve the energy efficiency of our own operations.
Yum China recognizes the importance of utilizing renewable
energy to bolster our climate resilience and support our
low-carbon transition.
We are actively collaborating with our partners to explore
affordable, reliable, and scalable renewable energy
opportunities, in order to increase the use of renewable
energy. We are continuously evaluating and piloting the
application of Distributed Photovoltaics (DPV) for
company-owned restaurants and logistics centers. At the same
time, we are also exploring DPV projects with our strategic
landlords for leased locations. And we are exploring China's
green power trading scheme as another manner for renewable
energy.
In 2022, we completed a pilot program to convert two company-owned restaurants in Zhejiang Province to 100% renewable energy. Building on the success of this pilot, in 2023, 70+ restaurants in Zhejiang, Anhui and Shanxi provinces transitioned to 100% renewable energy. In addition, we launched China’s first 100% renewable energy cold chain logistics center in Nanning, Guangxi Province.
More than two-thirds of Yum China's Scope 3 GHG emissions are
from our purchased goods, making it essential to promote
low-carbon transformation throughout the value chain to
achieve our net-zero GHG emissions goal by 2050. We are
committed to reducing Scope 3 GHG emissions from purchased
goods 66.3% per ton of goods purchased by 2035 from a 2020
base year. As a restaurant company, most of our upstream supply chain
belongs to land-intensive industries. How to reduce the
emissions related to forests, land, and agriculture (FLAG)
upstream will be of great importance in our journey to
decarbonize our value chain.
Our supply chain is complex across a wide range of categories
and with different stages of readiness of low-carbon
operations among our suppliers. We work with suppliers through
our '3E' management method to promote low-carbon supply chain.
