Reporting & Materiality
Regular reporting is the primary way that we share our progress and show transparency around our ESG practices. In addition to publishing annual updates on our Global Citizenship & Sustainability Report, which is completed in accordance with core Global Reporting Initiative (GRI) standards and the Sustainability Accounting Standards Board (SASB) framework for the Food & Beverage sector and Restaurant industry, we participate in comprehensive voluntary disclosures including the Bloomberg Gender-Equality Index, CDP Climate Change, Forests and Water Security, the Dow Jones Sustainability Index and the Roundtable on Sustainable Palm Oil (RSPO) Annual Communication of Progress. We also align our priority areas of work with the United Nations Sustainable Development Goals (UN SDGs).
Yum! also discloses our climate-related risks and opportunities through a Taskforce on Climate-related Financial Disclosures (TCFD) report. The results of our TCFD assessment, conducted in 2021, provide an analysis of the physical and regulatory risks that directly impact our restaurants and supply chain across regions and brands. This helps guide the prioritization of our work in addressing and mitigating risks of climate issues. In addition to our TCFD assessment, Yum! reports on other priority areas including workforce diversity and responsible supply chain.
Visit our ESG Library to view our disclosures.
Materiality Matrix
At Yum!, we regularly conduct materiality assessments, which are designed to identify and prioritize our most significant ESG impacts, risks and opportunities for our business and stakeholders. In 2021, we worked with a third party to conduct a new materiality assessment, building upon our last one, conducted in 2017. By examining current events and benchmarking with our peers, we identified 20 topics, which we segmented into categories aligned with Yum!’s sustainability pillars (People, Food and Planet), as well as Governance.
The materiality assessment solicited the input of key internal and external stakeholders, including company leaders, investors, franchisees, suppliers, non-governmental organizations (NGOs), industry associations and thought leaders. Based on the evidence provided through interviews and other source material, we mapped the relative priority of topics to Yum! and external stakeholders, as shown in the materiality matrix below.
Topics have been separated into three tiers, represented by the curved lines in the matrix. While all topics are important and can impact business success, the most important outcome of our assessment was the emergence of five clear Tier I topics: Climate Impact; Equity, Inclusion and Belonging; Food Safety; Packaging; and Operational Waste and Recycling. Animal Welfare was categorized under the Planet pillar when this materiality assessment was conducted, however, it is now captured within the Food section of our Recipe for Good structure.
