Yum China has established a sustainability governance structure that extends from the Board of Directors to our operational teams. At the Board level, the Board and its Food Safety and Sustainability Committee consider matters related to sustainability at least annually in connection with our strategic plan. In 2025, the Food Safety and Sustainability Committee held two meetings to discuss food safety and sustainability-related matters.
At the management level, we have established a Sustainability Committee. Our Chief Supply Chain Officer is the chair of our Sustainability Committee. The Sustainability Committee members meet quarterly to track the implementation of material initiatives, evaluate sustainability risks, and develop risk management
strategies and measures.
We are aiming to integrate ESG principles into our operational decision-making processes. Since 2021, ESG measures have been included in the key performance indicators to determine individual performance factors of our leadership team members. In addition, since 2023, we have incorporated ESG targets into the performance metrics of the annual Performance Share Unit (PSU) awards granted to our leadership team members.
Furthermore, to boost sustainability awareness and practical skills for the employees, Yum China has developed comprehensive training courses on sustainability, covering the basic concept of ESG, Yum China sustainability goals, strategies, latest progress, green energy transition approaches and supply chain low-carbon transformation practices.
and Sustainability Committee
Oversee practices, policies, procedures, strategies, and initiatives relating to sustainability (including environmental and climate-related issues, supply chain, and food nutrition and health).
Track the implementation of substantive issues, assesses climate and other sustainability risks, develops risk response strategies and measures, and supervises the implementation of key initiatives.
and Cross-functional Teams
Focus on internal and external stakeholder communication, responsible for taking actions to achieve our sustainability goals, including those related to GHG emissions, energy efficiency, water efficiency, green buildings and sustainable packaging. The Sustainability Task Force tracks current and emerging climate-related regulations, formulates sustainability action plans, and promotes the execution of key sustainability projects.
Implement sustainability-related projects and measures pertaining to climate, supply chain sustainability, nutrition and food safety across three major areas: sustainable restaurants, sustainable supply chains, and sustainable communities in support of Yum China's sustainability strategy and objectives.