We issued the Biodiversity Commitment and No Deforestation Commitment,which laid the blueprints for building a sustainable upstream ecosystem and fulfilling our commitment to sustainable development.
To conserve forest resources, we aim to achieve 'zero deforestation' in our supply chains and enhance upstream traceability, identifying major agricultural commodities from high-risk regions. We are also committed to the sustainable sourcing of major agricultural commodities such as palm oil, soy, cattle, and timber through enhancing upstream traceability and collaborating with value chain partners.
We actively focus on the promotion of marine resources. We 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.
We rely on natural ecosystem for raw material sourcing. To reduce the impact of this reliance, we have developed the Yum China's Nature-based Solutions (NbS) Framework, and encouraged and guided our suppliers to adopt regenerative agricultural practices while enhancing raw material traceability to mitigate upstream deforestation risks, thereby reducing FLAG-related GHG emissions while contributing to the preservation of natural ecosystems and the restoration of biodiversity. In 2024, Yum China conducted a traceability assessment across our upstream supply chain, focusing on the origins of beef and soybeans (critical components of chicken feed). We also evaluated raw materials with potential deforestation risks. Based on these insights, we developed a targeted zero-deforestation strategy, which will be implemented following the completion of feasibility assessments.
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 2024, the proportion of paper packaging used by our company that is certified by Forest Stewardship Council (FSC) reached arround 33%.
*The data is calculated based on the weight of the packaging.