Nature-based Solutions

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Minimizing Supply Chain Environmental Impact

Yum China is committed to building a "Zero Deforestation Supply Chain." We have released the Yum China Biodiversity Commitment and the Yum China No Deforestation Commitment to further reinforce our upstream supply chain's traceability as well as to proactively identify and assess potential environmental risks. Through these efforts, we are dedicated to minimizing negative impacts on nature.

We also actively focus on the promotion of marine resources and encourage our suppliers to obtain certification of sustainable food products, such as seafood certified by the Marine Stewardship Council (MSC) and Best Aquaculture Practices (BAP), to promote sustainable fisheries and contribute to the balance of the marine ecosystem.

100%
of the palm oil we purchase is Roundtable on Sustainable Palm Oil (RSPO)-certified and can be traced back to palm oil processing plants.
100%
of the soy used for our soybean milk powder can be traced.
100%
of beef we purchase has received external quality or sustainability-related certifications*.
100%
of paper products were sourced from deforestation-free suppliers. ~99%** of paper packaging was FSC or equivalent certified (as of the end of 2025).
Sustainable Sourcing of Raw Materials in 2025
* Including ISO9000/ISO22000/HACCP/FSSC22000/BRCGS/Global G.A.P certifications.
** The data is calculated based on the weight of the packaging.
Sustainable Sourcing of Key Commodities
Yum China's raw material sourcing is closely connected to natural ecosystems. We collaborate with key suppliers to implement regenerative agriculture practices. Through the Yum China Nature-based Solutions Framework, we actively address nature-related risks and mitigate their associated impacts. Meanwhile, together with our value chain partners, we have committed to ensuring that our operations will not involve any illegal deforestation. We are also proactively exploring zero-deforestation solutions across the entire value chain. At the same time, we continues to strengthen the monitoring of nature-related risks in the value chain through robust raw material traceability management and conduct upstream supply chain traceability assessments.

As of the end of 2025, our chicken and beef suppliers can provide the country of origin for both the soybeans used in chicken feed and the beef itself. We are working closely with our suppliers to engage upstream soybean and beef traders to further enhance traceability. Additionally, our Supplier Greenhouse Gas Emissions Digital Management Platform now enables key suppliers to submit soybean and beef traceability information for more effective oversight and management. For all purchased raw materials, we continue to encourage and support suppliers in obtaining relevant sustainability certifications.
Palm Oil

Palm oil is one of our key raw materials for cooking. We have been an RSPO member since 2017 and committed to only purchasing palm oil that meets the eight principles and criteria of the RSPO.

We strive to protect natural resources and biodiversity while supporting sustainable palm oil production in collaboration with stakeholders. Since 2021, Yum China's procurement of palm oil can be traced to 100% of the palm oil processing plants.

Soy

In our supply chain, soy is used mainly as chicken feed and in soy-based food. We place a high priority on the environmental impact of the upstream soy supply chain, develop soy traceability systems, and launch a pilot project on soy traceability for chicken feed. We encourage our poultry suppliers to comply with the Amazon Soy Moratorium and other international tropical forest protection conventions and initiatives. In addition, we continue to strengthen the communication with upstream suppliers, industry experts and partners, and empower upstream suppliers.

All soy used in our restaurants' soymilk powder comes from Northeast China. The planting and procurement of soy, managed by local farms, is traceable and environmentally friendly.

Beef

We strictly comply China government's laws and regulations related to imported meat products, including the List of Registered Meat Products Enterprises Exporting to China.

We are working with our suppliers to implement the traceability of the source of beef and carry out environmental risk identification, analysis, and assessment of beef procurement in our supply chain, further solidifying the foundation of sustainable beef procurement.

Timber

We are committed to purchasing forest-friendly products and refuse to purchase paper products from suppliers that are potentially causing deforestation. We aim to achieve '100% of FSC-certified paper packaging by 2025'.

As of the end of 2025, the proportion of paper packaging used by our company that is certified by Forest Stewardship Council (FSC) or equivalent certification reached approximately 99%*.

*The data is calculated based on the weight of the packaging.