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Independent Accountant's Report We Have Reviewed The KPMG LLP Suite 2600 400 West Market Street Louisville, KY 40202 Independent Accountant’s Report We have reviewed the accompanying Statement of Greenhouse Gas Emissions and Water Withdrawal (the Statement of GHG Emissions and Water Withdrawal) for the year ended December 31, 2019 of YUM! Brands, Inc. YUM! Brands, Inc.’s management is responsible for preparing and presenting the Statement of GHG Emissions and Water Withdrawal in accordance with the World Resources Institute/World Business Council for Sustainable Development (WRI/WBCSD) Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition for Scope 1 and 3 and the WRI/WBCSD Greenhouse Gas Protocol Scope 2 Guidance; an amendment of the GHG protocol Corporate Standard, and the Water Withdrawal criteria set forth in Note 1. Our responsibility is to express a conclusion on the Statement of GHG Emissions and Water Withdrawal based on our review. Our review was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the review to obtain limited assurance about whether any material modifications should be made to the Statement of GHG Emissions and Water Withdrawal in order for it to be presented in accordance with the criteria. A review is substantially less in scope than an examination, the objective of which is to obtain reasonable assurance about whether the Statement of GHG Emissions and Water Withdrawal is in accordance with the criteria, in all material respects, in order to express an opinion. Accordingly, we do not express such an opinion. We believe that our review provides a reasonable basis for our conclusion. As described in Note 1, GHG Emissions and Water Withdrawal data are subject to measurement uncertainties resulting from limitations inherent in the nature and the methods used for determining such data. The selection of different but acceptable measurement techniques can result in materially different measurements. The precision of different measurement techniques may also vary. Based on our review, we are not aware of any material modifications that should be made to the Statement of GHG Emissions and Water Withdrawal of YUM! Brands, Inc. for the year ended December 31, 2019, in order for it to be presented in accordance with the WRI/WBCSD Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition for Scope 1 and 3 and the WRI/WBCSD Greenhouse Gas Protocol Scope 2 Guidance; an amendment to the GHG protocol Corporate Standard and the Water Withdrawal criteria set forth in Note 1. Louisville, Kentucky August 21, 2020 KPMG LLP is a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019 2019 2019 CO2e Market-Based Location-Based Emissions (metric tonnes (MT)) (metric tonnes (MT)) Scope 1 23,544.71 23,544.71 Scope 2 144,312.92 140,341.33 Subtotal: Gross Scope 1 & 2 167,857.63 163,886.04 Scope 3 36,159,737.13 36,159,737.13 Total: Gross Scope 1, 2, & 3 36,327,594.76 36,323,623.17 2019 Water Withdrawal Company Owned Stores Megaliters (Megaliters) Withdrawal 1,994.91 See accompanying Independent Accountants’ Review Report and notes to Statement of Greenhouse Gas Emissions and Water Withdrawal. 1 Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019 Note 1: The Company Organization Yum! Brands, Inc., based in Louisville, Kentucky, has over 50,000 restaurants in more than 150 countries and territories. The Company’s restaurant brands are – KFC, Pizza Hut and Taco Bell – which operate in the chicken, pizza and Mexican-style food categories. The Company has participated in the Carbon Disclosure Project (CDP) since 2010, publicly reporting on our progress towards reducing emissions and will continue to do so going forward. Between the CDP and our annual Citizenship and Sustainability Report, stakeholders will be able to review our progress towards reducing our emissions. Basis of Presentation The Statement of Greenhouse Gas (GHG) Emissions and Water Withdrawal (the Statement) has been prepared based on a calendar reporting year ended December 31, 2019. ▪ Scope 1 and Scope 3 GHG emissions information has been prepared in accordance with the World Resources Institute / World Business Council for Sustainable Development (WRI/WBCSD) Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition. ▪ Scope 2 GHG emissions information has been prepared in accordance with the WRI/WBCSD GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard. Collectively, the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition and the GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard are referred to as the GHG Protocol. The GHG emissions included in the Statement includes all direct (Scope 1), indirect (Scope 2) GHG emissions generated from all company-operated locations as defined under the operational control method and indirect (Scope 3) GHG emissions from all franchise facilities. The water withdrawals included in the Statement includes all water withdrawal generated from all company- operated locations. Total water withdrawals include total of all withdrawals from municipal water utilities. Withdrawals from municipal water utilities is determined from utility invoices. 2 Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019 Estimation Uncertainties Environmental and energy use data, and water withdrawal data included in the Statement of GHG Emissions and Water Withdrawal are subject to rounding as well as to measurement uncertainties resulting from limitations inherent in the nature and the methods used for determining such data. The selection of different but acceptable measurement techniques can result in materially different measurements. The precision of different measurement techniques may also vary. Consumption is based on raw data when available. When raw data is unavailable, we estimate consumption based on the average consumption from the most comparable facilities within the same geographic location. When this data was not available for water withdrawal, cost data was used to estimate the value. 3 Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019 Note 2: GHG Reporting Greenhouse Gases GHG emissions include four of the seven greenhouse gases covered by the Kyoto Protocol – carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and hydrofluorocarbons (HFCs). Perfluorocarbons (PFCs), nitrogen trifluoride (NF3) and sulphur hexafluoride (SF6) emissions have been omitted from our reporting as we do not use coolants that generate these greenhouse gases. In the tables below, the carbon dioxide equivalent (CO2e) is the sum of emissions from CO2e, N2O, and CH4 using their associated global warming potential (GWP) GHG Emission Factors GHG Emission Factors GHG Emission Source Emission Factor Source Federal Register EPA; 40 CFR Part 98; e-CFR, March 9, 2018. Table C-1, Table C-2, Table AA-1. Type CO2 CH4 N2O CO2e Measurement Natural Gas 181.04 3.4300 0.3300 184.80 g CO2e/kWh Heating Liquefied Petroleum 212.27 10.4600 2.2400 224.97 Scope 1 & 3 & 1 Scope Gases g CO2e/kWh Gas/Diesel Oil 301.65 12.1100 2.3600 316.12 g CO2e/kWh Federal Register EPA; 40 CFR Part 98; e-CFR, March 9, 2018. Table C-1 Type CO2 Measurement 10.21 kg CO /gal Diesel 2 and Fuel Fuel and 8.78 kg CO2/gal Scope 1 & 3 & 1 Scope Gasoline/Petrol Transportation Transportation Department for Environment, Food & Rural Affairs UK Government Greenhouse gas reporting: conversion factors 2019 Type CO2 CH4 N2O CO2e Measurement Travel Travel Scope 3 Scope Business g CO e/passenger.km 237.483 0.047 1.183 238.713 2 Business Air Travel (Average all flight types) 4 Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019 International Energy Agency (IEA 2017) (Published 2019) CO2 CH4 N2O CO2e Country (g/kWh) (g/kWh) (g/kWh) (g/kWh) Australia 742.90 0.20 3.00 746.10 Canada 142.00 0.10 0.50 142.60 France 69.00 0.10 0.30 69.40 Germany 416.70 0.30 1.80 418.80 India 718.10 0.70 4.10 722.90 sed Electricity GHG Emission sed Electricity Italy 325.70 0.30 1.00 327.00 Netherlands 437.00 0.40 1.40 438.80 Russia 350.50 0.20 0.70 351.40 Factors (location based) based) (location Factors Singapore 395.00 0.60 1.00 396.60 South Africa 899.60 0.20 4.30 904.10 Spain 288.30 0.30 1.10 289.70 United Arab Emirates 658.20 0.30 0.40 658.90 United Kingdom 245.30 0.60 1.10 247.00 Scope 2: International Purcha United States 421.10 0.20 1.60 422.90 RE-DISS - European Residual Mixes (Published 2019) CO2e Country (g/kWh) France 53.18 Germany 728.69 Italy 487.23 Netherlands 533.39 Spain 450.91 GHG Emission Factors (Market based) (Market Factors GHG Emission Scope 2: International Purchased Electricity Electricity Purchased 2: International Scope United Kingdom 380.96 5 Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019 International Energy Agency (IEA 2017) (Published 2019) CO2 CH4 N2O CO2e Country (g/kWh) (g/kWh) (g/kWh) (g/kWh) Albania 0.00 0.00 0.00 0.00 Algeria 568.00
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