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.

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.

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.

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)

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

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 0.30 1.80 570.10 Andorra 395.50 0.20 1.00 396.70 Angola 498.90 0.50 1.20 500.60 Antigua 187.70 0.20 0.50 188.40 Argentina 351.10 0.30 0.60 352.00 Armenia 159.3 0.1 0.1 159.50 Aruba 187.70 0.20 0.50 188.40 Australia 742.90 0.20 3.00 746.10 Austria 160.80 0.30 0.50 161.60 Azerbaijan 487.5 0.3 0.5 488.30 Bahamas 187.70 0.20 0.50 188.40 Bahrain 697.80 0.30 0.40 698.50 Bangladesh 504.40 0.30 0.40 505.10 Barbados 187.70 0.20 0.50 188.40 Belarus 376.00 0.20 0.20 376.40 Belgium 170.50 0.50 0.80 171.80 Bermuda 187.70 0.20 0.50 188.40 Bolivia 432.30 0.70 1.00 434.00 Bonaire 187.70 0.20 0.50 188.40 Botswana 1418.10 0.40 6.70 1425.20 Brazil 116.60 0.10 0.20 116.90 Scope 3: Purchased Electricity GHG Emission Factors (Location Based) Brunei 636.20 0.30 0.40 636.90 Bulgaria 511.40 0.10 2.20 513.70 Cambodia 591.40 0.30 2.90 594.60

Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019

CO2 CH4 N2O CO2e Country (g/kWh) (g/kWh) (g/kWh) (g/kWh) Canada 142.00 0.10 0.50 142.60 Chile 435.10 0.10 1.70 436.90 China 623.30 0.30 3.00 626.60 Colombia 134.00 0.20 0.50 134.70 Costa Rica 2.40 0.00 0.00 2.40 Croatia 208.00 0.10 0.60 208.70 Curacao 422.40 0.40 1.00 423.80 Cyprus 643.80 0.60 1.50 645.90 Czech Republic 499.80 0.10 2.10 502.00 Denmark 150.60 0.10 0.70 151.40 Dominica 187.70 0.20 0.50 188.40 Dominican Republic 520.80 0.50 1.50 522.80 Ecuador 178.80 0.20 0.50 179.50 Egypt 441.80 0.30 0.40 442.50 El Salvador 162.50 2.10 3.40 168.00 Estonia 862.50 0.30 1.60 864.40 Ethiopia 568.00 0.30 1.80 570.10 Finland 105.20 0.20 0.50 105.90 France 69.00 0.10 0.30 69.40 French Guiana 187.70 0.20 0.50 188.40 Gabon 420.20 0.30 0.60 421.10 Georgia 94.30 0.00 0.10 94.40 Germany 416.70 0.30 1.80 418.80 Ghana 248.20 0.20 0.30 248.70 Gibraltar 756.80 0.70 1.70 759.20 Scope 3: Purchased Electricity GHG Emission Factors (Location Based) Grand Cayman 187.70 0.20 0.50 188.40 Greece 531.40 0.20 1.70 533.30 Grenada 187.70 0.20 0.50 188.40 Guadeloupe 69.00 0.10 0.30 69.40 Guam 485.30 0.30 1.90 487.50

Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019

CO2 CH4 N2O CO2e Country (g/kWh) (g/kWh) (g/kWh) (g/kWh) Guatemala 306.50 3.20 6.30 316.00 Guyana 187.70 0.20 0.50 188.40 Honduras 315.30 0.90 1.90 318.10 Hong Kong 726.00 0.20 2.80 729.00 Hungary 265.70 0.40 1.30 267.40 Iceland 0.10 0.00 0.00 0.10 India 718.10 0.70 4.10 722.90 Indonesia 768.50 0.30 3.00 771.80 Iraq 907.50 0.80 1.80 910.10 Ireland 378.40 0.30 1.20 379.90 Israel 555.50 0.20 1.50 557.20 Italy 325.70 0.30 1.00 327.00 Ivory Coast 568.00 0.30 1.80 570.10 Jamaica 586.50 0.60 1.30 588.40 Japan 522.30 0.40 1.70 524.40 Jordan 497.90 0.30 0.40 498.60 Kazakhstan 611.70 0.20 2.30 614.20 Kenya 184.30 0.30 0.60 185.20 Korea 537.30 0.20 2.00 539.50 Kosovo 953.90 0.20 4.20 958.30 Kuwait 595.10 0.50 1.00 596.60 Kyrgyzstan 50.70 0.00 0.20 50.90 Latvia 72.30 0.00 0.00 72.30 Lebanon 774.20 0.80 1.80 776.80 Lesotho 899.60 0.20 4.30 904.10 Lithuania 78.50 0.10 0.20 78.80 Luxembourg 172.70 1.30 2.10 176.10

Scope 3: Purchased Electricity GHG Emission Factors (Location Based) Macau 623.30 0.30 3.00 626.60 Macedonia 713.50 0.20 2.90 716.60 Madagascar 568.00 0.30 1.80 570.10 Malawi 568.00 0.30 1.80 570.10 Malaysia 650.00 0.30 2.40 652.70 Maldives 623.30 0.30 3.00 626.60 Malta 431.10 0.20 0.40 431.70 Martinique 69.00 0.10 0.30 69.40

Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019

CO2 CH4 N2O CO2e Country (g/kWh) (g/kWh) (g/kWh) (g/kWh) Mauritius 803.30 2.10 6.00 811.40 Mexico 477.30 0.40 1.00 478.70 Military - 568.00 0.30 1.80 570.10 Africa Military - 609.80 0.40 2.60 612.80 Asia Military - 303.40 0.20 1.10 304.70 Europe Military - 288.30 0.30 1.10 289.70 Iberia Military - 352.60 0.20 1.20 354.00 Latin America Military - 568.00 0.30 1.80 570.10 MENA Military - 352.60 0.20 1.20 354.00 US Moldova 482.00 0.20 0.30 482.50 Mongolia 1259.40 0.40 5.60 1265.40 Morocco 686.40 0.30 2.80 689.50 Mozambique 69.90 0.00 0.00 69.90 Myanmar 360.20 0.10 0.50 360.80 Namibia 54.40 0.00 0.30 54.70 Nepal 0.00 0.00 0.00 0.00 Netherlands 437.00 0.40 1.40 438.80 New Zealand 115.70 0.00 0.10 115.80 Scope 3: Purchased Electricity GHG Emission Factors (Location Based) Nicaragua 310.40 3.40 5.70 319.50 Nigeria 417.50 0.20 0.20 417.90 Norway 8.30 0.00 0.00 8.30

Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019

CO2 CH4 N2O CO2e Country (g/kWh) (g/kWh) (g/kWh) (g/kWh) Oman 456.30 0.20 0.30 456.80 Pakistan 415.50 0.40 1.00 416.90 Panama 186.50 0.30 0.70 187.50 Paraguay 0.00 0.00 0.00 0.00 Peru 221.60 0.30 0.60 222.50 Philippines 668.80 0.30 3.00 672.10 Poland 709.40 0.30 3.20 712.90 Portugal 358.80 0.40 1.60 360.80 Puerto Rico 187.70 0.20 0.50 188.40 Qatar 486.40 0.20 0.30 486.90 Romania 342.50 0.10 1.30 343.90 Russia 350.50 0.20 0.70 351.40 Saipan 485.30 0.30 1.90 487.50 Saudi Arabia 708.90 0.50 1.00 710.40 Senegal 568.00 0.30 1.80 570.10 Serbia 787.00 0.20 3.40 790.60 Singapore 395.00 0.60 1.00 396.60 Slovakia 159.80 0.10 0.60 160.50 Slovenia 261.60 0.10 1.10 262.80 South Africa 899.60 0.20 4.30 904.10 Spain 288.30 0.30 1.10 289.70 Sri Lanka 628.60 0.40 2.50 631.50 St. Kitts 187.70 0.20 0.50 188.40 St. Lucia 187.70 0.20 0.50 188.40 St. Maarten 187.70 0.20 0.50 188.40 St. Vincent 187.70 0.20 0.50 188.40

Scope 3: Purchased Electricity GHG Emission Factors (Location Based) Sudan 317.7 0.3 0.8 318.80 Suriname 395.50 0.40 0.90 396.80 Swaziland 568.00 0.30 1.80 570.10 Sweden 12.60 0.00 0.10 12.70 Switzerland 28.40 0.20 0.30 28.90 Taiwan 623.60 0.30 2.30 626.20 Tanzania 301.90 0.30 0.50 302.70

Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019

CO2 CH4 N2O CO2e Country (g/kWh) (g/kWh) (g/kWh) (g/kWh) Thailand 472.60 1.50 3.20 477.30 Trinidad 467.10 0.20 0.30 467.60 Tunisia 428.10 0.20 0.20 428.50 Turkey 461.20 0.20 1.50 462.90 Uganda 568.00 0.30 1.80 570.10 Ukraine 361.40 0.10 1.50 363.00 United Arab 658.20 0.30 0.40 658.90 Emirates United Kingdom 245.30 0.60 1.10 247.00 United States 421.10 0.20 1.60 422.90 (LocationUSVI Based) 485.30 0.30 1.90 487.50 Uzbekistan 544.60 0.20 0.60 545.40 Venezuela 287.60 0.20 0.40 288.20 Vietnam 360.30 0.10 1.30 361.70 West Bank 555.50 0.20 1.50 557.20 Zambia 131.60 0.10 0.60 132.30 Scope 3: Purchased Electricity GHG Emission Factors Zimbabwe 704.80 0.40 3.60 708.80

Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019

Global Warming Potentials The GHG emissions were calculated using the Global Warming Potentials (GWP) from the International Panel on Climate Change (IPCC) Fifth Assessment Report, as shown for gases below, and the country appropriate emission factors listed above.

Global Warming Potentials (GWP) from the International Panel on Climate Change (IPCC) Fifth Assessment Report (AR5)

CO2 1 CH4 28 N2O 265

Green energy purchases are reflected in the Company’s market-based Scope 2 GHG emissions. The Company has not traded, sold, purchased, transferred or banked any carbon allowances. Note 3: Scope 1, Scope 2 and Scope 3: GHG Emissions by Type The following table presents the Company’s GHG Emissions by scope and greenhouse gas* for the reporting period in metric tonnes:

CH N O HFC CO Emissions 4 2 CO2 Emissions 2 Emissions Emissions Emissions e (mt)*** (mt) (mt)*** (mt)*** (mt)

Scope 1 20,206.23 405.68 44.59 2,888.21 23,544.71 Scope 2* 139,664.22 102.05 575.06 0.00 140,341.33 Scope 3** 36,011,865.40 21,163.00 6,068.60 120,640.13 36,159,737.13 Total 36,171,735.85 21,670.73 6,688.25 123,528.34 36,323,623.17

*Scope 2 data reflects the location-based approach.

** Reported Scope 3 emissions include estimations of the following: 1. Franchises: Buildings (Scope 1 and 2) 2. Transportation a. Upstream Transportation and Distribution b. Downstream Transportation c. Business Travel 3. Purchased Goods and Services a. Food, Cooking Oil, Plastic Service Wares, Fiber-Based Packaging 4. Waste a. Waste Generated in Operations b. End of Life Treatment of Sold Products: Packaging

*** Transportation, purchased goods, and end of life were not broken into CH4 and N2O

Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019 Note 4: Scope 2 GHG Emissions by Approach

The following table presents the Company’s GHG Emissions by scope and method for the reporting period in metric tonnes of CO2e:

Market Based Location Based

CO2e CO2e Emissions Emissions (metric tCO2e) (metric tCO2e)

Scope 1 23,544.71 23,544.71

Scope 2 - Location Based 133,107.56 140,341.33 - Residual Mix 11,205.36 0.00

Scope 2 Total 144,312.92 140,341.33

Gross Scope 1 and 2 167,857.63 163,886.04

Adjusted emissions factors due to residual mix are only available in European countries (e.g. France, Germany, Italy, Netherlands, Spain, and United Kingdom), all other countries are not available, which may result in double counting between electricity consumers.

Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2019

Note 5: Scope 1 and Scope 2: GHG Emissions by Region (metric tonnes CO2e)

Market Based Location Based Country Scope 1 Scope 2 Total Scope 1 Scope 2 Total Australia 803.24 16,280.23 17,083.47 803.24 16,280.23 17,083.47 Canada 124.33 153.03 277.36 124.33 153.03 277.36 France 25.68 18.48 44.16 25.68 24.11 49.79 Germany 96.95 955.65 1,052.60 96.95 549.24 646.19 India 3,136.79 19,555.74 22,692.53 3,136.79 19,555.74 22,692.53 Italy 7.38 48.66 56.04 7.38 32.66 40.04 Netherlands 20.77 149.87 170.64 20.77 123.30 144.07 Russia 449.89 8,468.34 8,918.23 449.89 8,468.34 8,918.23 Singapore 37.00 198.50 235.50 37.00 198.50 235.50 South Africa 192.29 15,486.23 15,678.52 192.29 15,486.23 15,678.52 Spain 9.68 59.06 68.74 9.68 37.95 47.63 UAE 22.05 196.51 218.56 22.05 196.51 218.56 United Kingdom 1,266.19 9,973.65 11,239.84 1,266.19 6,466.52 7,732.71 USA 17,352.47 72,768.97 90,121.44 17,352.47 72,768.97 90,121.44 Total 23,544.71 144,312.92 167,857.63 23,544.71 140,341.33 163,886.04