KFC

RATING

SECTOR

Restaurants

WEBSITE

CONTACT

1900 Colonel Sanders Lane
Louisville,KY 40213
United States
Tel: 1-502-874-8200

STOCK EXCHANGE

LISTING

N/A

EMPLOYEES

24,000

CHIEF SUSTAINABILITY OFFICER

Roger McClendon

AWARDS

N/A

CONTENT SOURCE

FURTHER READING

Report created by Sagarika Deshmukh

KFC

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

KFC Corporation, based in Louisville, Kentucky, is one of the few brands in America that can boast about having a rich, 60-year history of success and innovation. KFC’s parent company is YUM! Brands which also owns Taco Bell and Pizza Hut.

Furthermore, the Yum! Brands, Inc., has nearly 43,000 restaurants in more than 130 countries and territories. KFC is the world’s most popular chicken restaurant chain: there’s currently 22,600 KFC outlets around the world and increasing as the Worldwide KFC system sales grew 6% last year. 

Yum! Brands is ranked #228 on the FORTUNE 500 list with revenues of more than $13 billion, and in 2015 was named one of the Aon Hewitt Top Companies for Leaders in North America. Their restaurant brands – KFC®, Pizza Hut® and Taco Bell® – are the global leaders of the chicken, pizza and Mexican-style food categories.

More important than their size is their commitment to breakthrough innovation and the success of their employees. They’re proud of the unique culture we’ve built, one where everyone can be their best self, make a difference and have fun! They believe in their people, trust in their positive intentions, encourage ideas from everyone, and have actively developed a workforce that is diverse in style and background.

Company Sustainability Activity

Yum! Brands’ Citizenship & Sustainability priorities concentrate on advancing progress and results in the most critical parts of their business: feeding people and being transparent about what’s in their food, choosing responsible suppliers, operating their restaurants efficiently, hiring and developing the best talent in an inclusive workplace, and giving back to their communities.

Highlights

  • Since 2018, YUM! Brands reduced their company GHG emissions 8.5% on a per restaurant average
  • Purchased renewable energy credits, entered into a power purchasing agreement to offset their electricity use and are exploring onsite options for the future.
  • KFC Australia diverted about 40% of its waste in 2019.

Targets

GREEN BUILDINGS

  • Reduce average restaurant energy and GHG emissions by an additional 10%, from their 2017 baseline, by the end of 2025.
  • Yum!’s corporate U.S. offices will use 100% renewable energy by the end of 2020.
  • Reduce average restaurant water consumption by 10%, from their 2017 baseline, by the end of 2025.
  • Divert 50% of back-of-house operational waste, measured by weight, generated in their U.S. restaurants by the end of 2020
  • Reduce food loss waste 50% by 2030 in accordance with U.S. Food Loss and Waste 2030 Champions

SUPPLY CHAIN

  • By 2025, KFC plastic-based, consumer-facing packaging will be recoverable or reusable globally.
  • As intermediate steps, Yum! will remove Styrofoam and expanded polystyrene from all packaging by 2022, as well as meet the goal in its U.S. corporate offices by the end of 2020.
  • Source 100% of palm oil used for cooking from responsible and sustainable sources by the end of 2019.
  • Purchase 100% of their paper-based packaging with fiber from responsibly managed forests and recycled sources by the end of 2020.
  • Endorsed the New York Declaration on Forests (NYDF) and the private sector goal of eliminating deforestation from the production of agriculture commodities such as palm oil, soy, paper and beef products no later than 2020; halving the rate of loss of natural forest globally by 2020; and striving to end natural forest loss by 2030.
  • KFC pledged that plastic straws and plastic bags will be completely removed from their restaurants by Fall, 2019.

Progress

GREEN BUILDINGS

  • Since 2018, YUM! reduced the company’s GHG emissions 8.5% on a per restaurant average. 
  • In 2019, system environmental efforts for restaurants avoided the release of 723,922 MTCO2e, the equivalent of the annual emissions of 156,399 passenger vehicles driven for a year.
  • Purchased renewable energy credits, entered into a power purchasing agreement to offset their electricity use and are exploring onsite options for the future
  • Since 2017, water consumption on a per-restaurant basis has increased due to the use of expanded reporting and more usage. 
  • In 2019,  conservation measures helped avoid the use of 295,905,766 gallons of water.
  • The World Resources Institute, Aqueduct 3.0, determined 17% of the restaurants are located in areas of high water risk.
  • In 2019, estimate that 964,739 tons of solid material was removed from their U.S. restaurants and the company avoided the disposal of 20% of that waste. 

SUPPLY CHAIN

  • The first global survey of purchased plastics was conducted to collect 2019 data. While there’s still work to be done when it comes to refining data collection, approximately 18% of resins come from recycled sources, 14% pre-consumer and 4% post-consumer. Expanded polystyrene, of which Styrofoam is a component, consists of 2% of the reported plastic used by their system. 
  • KFC markets are working with suppliers to identify, test and implement solutions. Some markets, including Canada, France, Romania and Singapore, have implemented plastic straw bans.
  • In 2019, 100% of palm oil used for cooking was certified sustainable by the Roundtable for Sustainable Palm Oil. Claims to continue to look for opportunities to reduce the environmental footprint of  palm oil use.
  • In 2019, an estimated total of 76% of fiber came from certified forests or recycled sources.
  • In 2019, 100% of Brazilian feed mills in their supply chain were audited as compliant in aligning with the Amazon Soy Moratorium to help protect tropical forests. 
  • 99% of  reported beef supply was sourced from origins of low-risk tropical deforestation in 2019. 

Certificates

  • LEED

UN Sustainable Development Goals

UN SDGs Compliance

SDG 2

  • Yum! Brands committed to providing consumers with more access to balanced food choices that meet their lifestyles and dietary preferences and are less processed or modified. Recent efforts have focused on collecting data to help inform their work when it comes to offering more balanced choices. In 2019, 42% of food offerings met global nutrition criteria. 

SDG 8

  • YUM! Brands plans to invest $100M over the next 5 years to create pathways to entrepreneurship for restaurant employees wanting to lead a business, franchise or social enterprise, as well as for small businesses and social entrepreneurs looking to make a meaningful difference in their communities.

SDG 12

  • KFC has developed a roadmap that includes partnering with major suppliers and franchisees globally to identify plastic alternatives in each market. The brand is currently conducting an audit of existing systems, partnering with suppliers to identify sustainable packaging alternatives and setting market-specific goals to reduce, reuse and recycle. Several markets have already announced and implemented commitments, such as plastic straw bans in Singapore, Romania, France and Canada and removal of consumer plastic bags from KFC restaurants in India. 

SDG 13

  • To support further progress toward no deforestation and using their scale to positively impact the broader industry, they endorsed the New York Declaration on Forests (NYDF) and the private sector goal of eliminating deforestation from the production of agriculture commodities such as palm oil, soy, paper and beef products no later than 2020, halving the rate of loss of natural forest globally by 2020 and striving to end natural forest loss by 2030. 

Evaluation

KFC’s parent company, YUM! Brands, provided limited solutions to resolve the high number of plastic waste and no clear steps on what the company will do moving forward.

Yum Brands! claims to continue to look for opportunities to reduce the environmental footprint of  palm oil use, but they have not considered other more sustainable alternatives to palm oil. 

YUM! Brands have been compliant with a few SDGs and have no listings/awards to demonstrate their commitment towards sustainability. 

KFC, a subsidiary company of YUM! Brands, has been rated a C.

Analyst Outlook: Negative

Yum! Brands lacks certificates that could prove their dedication to becoming more sustainable. Their SDGs are also lacking and there aren’t clear efforts in place towards achieving them. This is why the analyst outlook is negative. 

Key Points

  • YUM! Brands, Inc., the world’s largest quick service restaurant company, with global brands including KFC, Taco Bell, and Pizza Hut, has agreed to end use of harmful expanded polystyrene (EPS) foam packaging globally by 2022, following engagement with As You Sow. 
  • No progress communicated by YUM! Brands with regards to packaging.
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