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KPMG Report with Statement.Pdf KPMG LLP Suite 2600 400 West Market Street Louisville, KY 40202 Independent Accountant’s Review Report The Board of Directors YUM! Brands, Inc.: 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, 2018 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 to 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 of 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, 2018, 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 July 24, 2019 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, 2018 2018 2018 CO2e Market-Based (metric Location-Based Emissions tonnes (MT)) (metric tonnes (MT)) Scope 1 48,046.50 48,046.50 Scope 2 159,402.58 155,439.22 Subtotal: Gross Scope 1 & 2 207,449.08 203,485.72 Scope 3 28,941,866.03 28,941,866.03 Total: Gross Scope 1, 2, & 3 29,149,315.11 29,145,351.75 2018 Water Withdrawal Equity Stores Mega liters (Mega liters) Withdrawal 2,133.4 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, 2018 Note 1: The Company Organization Yum! Brands, Inc., based in Louisville, Kentucky, has over 48,000 restaurants in more than 140 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 Corporate Sustainability Report (CSR), 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, 2018. ▪ 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. At the close of business of October 31, 2016 Yum’s China division was spun-off into an independent, publicly traded company under the name of Yum! China Holdings, Inc. As a result, the China business now operates under a franchise agreement and GHG emissions are included under Scope 3. These emissions have been calculated directly from reported energy consumption at the restaurant level. 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, 2018 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, 2018 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. GHG Emission Factors GHG Emission Source Emission Factor Source World Resource Institute (2015). GHG Protocol tool for stationary combustion. Version 4.1 & 3 CO2 CH4 N2O CO2e Natural gas 201.944 0.504 0.095 202.543 g CO2e/kWh Heating Liquefied Petroleum Scope 1 Gases 227.142 0.504 0.095 227.741 g CO2e/kWh Gas/Diesel oil 2676.492 10.114 5.743 2692.349 g CO2e/liter GHG Protocol (2015) Refrigeration and Air & 3 GWP Conditioning Equipment calculation tool Scope 1 R-404A 3260 Refrigerants R-410A 1725 EPA Federal Register; Revisions to the Greenhouse Gas Reporting Rule, 2013 Type Diesel 10245.32 g CO2e/gal Diesel 2697.49 g CO2e/L Gasoline/Petrol 8814.48 g CO2e/gal Scope 1 & 3 Transport Fuel Gasoline/Petrol 2319.683 g CO2e/L DEFRA UK Government Greenhouse gas reporting: conversion factors 2017 CO2 CH4 N2O CO2e Travel Scope 3 Business g CO2e/passenger.km (Average all 280.71 0.01533761 1.39857143 282.123909 Business Air Travel flight types) 4 Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018 US Environmental Protection Agency eGRID 2016 (Published 2018): eGRID CO2 CH4 N2O CO2e eGRID Subregion Name Acronym (g/kWH) (g/kWH) (g/kWH) (g/kWH) AKGD ASCC Alaska Grid 486.375 0.035 0.005 488.639 AKMS ASCC Miscellaneous 228.212 0.010 0.002 228.997 AZNM WECC Southwest 473.387 0.036 0.005 475.838 CAMX WECC California 239.433 0.015 0.002 240.352 ERCT ERCOT All 457.743 0.034 0.005 459.975 FRCC FRCC All 458.889 0.034 0.005 461.008 HIMS HICC Miscellaneous 522.543 0.043 0.007 525.578 HIOA HICC Oahu 754.269 0.082 0.013 759.865 MROE MRO East 756.684 0.071 0.012 761.711 MROW MRO West 561.915 0.052 0.009 565.820 NEWE NPCC New England 253.174 0.041 0.005 255.696 NWPP WECC Northwest 295.377 0.028 0.004 297.286 NYCW NPCC NYC/Westchester 288.397 0.010 0.001 288.972 NYLI NPCC Long Island 534.475 0.057 0.007 537.954 NYUP NPCC Upstate NY 133.655 0.010 0.001 134.236 RFCE RFC East 343.902 0.023 0.004 345.687 RFCM RFC Michigan 576.987 0.030 0.008 580.094 RFCW RFC West 564.011 0.049 0.009 567.655 RMPA WECC Rockies
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