#### Oversight from the Board\n# Governance At the Board level, the Food Safety and Sustainability initiatives. The Board considers sustainability matters at least\n\nCommittee assists the Board in its oversight of the Company's annually in connection with the strategic plan. In 2021, the\npractices, policies, procedures, strategies and initiatives Food Safety and Sustainability Committee held three meetings\nrelating to sustainability, including environmental and to discuss food safety and sustainability related issues. It is\nsupply chain. The Food Safety and Sustainability Committee mainly responsible for, among others, the following matters\nmonitors trends, issues and concerns affecting the Company's that relate to sustainability and climate:\n\n# Governance\n\n--NEW-PAGE--\n\nIn 2021, Yum China Management Team and the Food Safety\nand Sustainability Committee supported signing and\nsubmitting the Business Ambition for 1.5°C Commitment Letter\nto the SBTi, making commitment to reaching net-zero value\n\nchain emissions by 2050. In 2022, our Management Team and\nthe Food Safety and Sustainability Committee approved Yum\nChina near-term science-based GHG emissions reduction\ntargets for SBTi submission.\n\n#### Management's Role\n\n###### Sustainability Committee\n\nThe Sustainability Committee is a management committee responsible for evaluating sustainability\nrisks and monitoring the implementation of key initiatives, and regularly reports to the Food Safety\nand Sustainability Committee. It is comprised of selected leadership team members, the Sustainability\nOfcer, and cross-functional teams. The Sustainability Committee members meet quarterly to track fi\nthe implementation of material topics, evaluate sustainability risks, and develop risk management\nstrategies and measures.\n\n###### As we move further along our climate action journey, we are stepping up efforts to become a company committed to net-zero emissions. In order to transform sustainability challenges, such as climate change, into opportunities, Yum China will continue to collaborate with stakeholders across the value chain.\n\n —Joey Wat, CEO of Yum China\n\nYum China's Sustainability Task Force assists the Sustainability Committee in implementing\nsustainable initiatives, and includes cross-functional teams and a sustainability team. It is\nresponsible for taking actions to achieve our sustainability goals under three strategic pillars of\nFood, Environment, and People, involving issues such as GHG emissions, energy efficiency, water\nefficiency, green building, and sustainable packaging. The Sustainability Task Force monitors\ncurrent and emerging climate-related regulations, develops sustainability action plans, and\npromotes the implementation of key sustainability initiatives.\n\nThe Board and management have engaged in extensive\ndiscussions regarding how to further incentivize and assess\nperformance with respect to specific environmental, social\nand governance ('ESG') and sustainability initiatives. Beginning\nwith the 2021 annual incentive program, ESG measures have\nbeen incorporated into the key performance indicators that are\nused to determine the individual performance factor for each\nleadership team member. ESG performance goals are tailored\n\nfor each member of the leadership team based on their roles\nand responsibilities and the Compensation Committee will\nassess their performance in these areas. ESG and sustainability\ngoals included goals relating to the publication of the\nCompany's sustainability report, goals relating to climate, the\nCompany's supply chain and environmental impact, initiatives\nrelating to customer awareness of environmental goals, plastic\nreduction initiatives, and goals relating to the KFC Food Bank.\n\nThe Operations Teams are responsible for implementing projects and initiatives relevant to\nsustainable restaurants, sustainable supply chain, and sustainable community to support Yum\nChina's sustainability strategy.