KFC Sustainability - SustainabilityTracker.com

People: Our People Promise

Create a people-first culture that attracts, retains, and grows our people to create the most satisfying guest experience. With our people being our most important asset, we’ve put a big focus on their wellbeing. These initiatives include: • Parental leave • Wellness days • Flexible work • Supplier pulse days • Our graduate leadership program • MyPlan: a fun and interactive web- based tool that helps our people to identify short and long-term goals, sharing them with parents, counsellors or managers as their advocates and advisers. • HeartStyles: a personal, leadership and cultural development program rolled into one. • The Wellbeing Outfit: KFC has partnered with the wellbeing outfit to develop a new safety process known as the safely managing distress procedure.

People: Diversity, Equity & Inclusion Promise

Foster an inclusive culture across the KFC family to reflect the diversity of Australia. We ensure that no matter who you are, everyone is welcome at our table. 2020 Progress Update: • UnconsciousbiastrainingstartedacrossourRestaurantSupportCentrein2019, with more rolling out in 2021. • Anti- harassment training for all across the RSC, to help recognise situations that may involve harassment or discrimination and what to do when you experience or witness these situations. • Diversity of participants on leadership programs. • Cultivating an environment of inclusion and belonging by celebrating cultural days and days of significance across the RSC and restaurants. • 95% of women who take maternity leave return to work. • 72% of field leaders (RGMs) are female. • 53% of RSC line managers are female. • 71% of the senior leadership team are female.

People: Youth Foundation Promise

Support charity organisations that equip Aussies with the skills to thrive and live life to its fullest. In May 2018, we were extremely excited to launch the KFC Youth Foundation to build confidence in young Aussies. We love their passion and drive, and we know they thrive – not just survive – with the right support. To support these charities over the years, we’ve been able to have some fun in the way we raise funds. We’ve seen franchisees set up car washes in their drive-thrus, created merchandise for fans to purchase, formed the Rally4Youth, which sees more than 40 cars travel across regional Victoria. We’ve created “Chip In Week”, which saw us launch a limited-edition bucket of chips with proceeds from sales going to the Foundation. Throughout the entire process, we’ve not only raised over $3.9 million for the charities, but we’ve also seen our people become incredibly invested in the success of the foundation. Many of the activities that raise funds have been born from team members and franchise partners who are willing to spend their personal time giving back to those who need it most.

Food: Food Safety Promise

We want to deliver the tastiest, freshest finger lickin’ good food for our guests, but we also want to be the food safety experts. 2020 Progress Update: • 100% of our chickens are sourced locally. • 97% of our chicken is delivered fresh into restaurants each day (the rest is frozen). • Around 85% of our ingredients are sourced from within Australia. • HACCP accreditation maintained. • Ongoing Open Kitchens with stakeholders (in-line with COVID restrictions). • Enhanced internal restaurant audit program and a continuous improvement model for the program and training of our people. • The rollout of‘ Trust In Every Bite’ at RGM Conference with continued focus throughout the year via campaigns, comms and training. • Regular 3rd party supplier quality assurance audits undertaken across all of our food and paper suppliers.

Food: Nutrition & Choice Promise

Create fresh and craveable meal choices for our guests. 2020 Progress Update: • Continued to develop nutrition guardrails for menu items. • Continued to include more pantry ingredients across menus for nutritional improvements. • Continued our progress of reducing sodium in our products. • Moved to high oleic canola for our cooking oil.

Food: Transparency Promise

We hate secrets (unless we’re talking about herbs and spices) and are committed to providing full transparency on all menu items, now and into the future. 2020 Progress Update: • Continue work to remove additives and artificial ingredients by 2025. • Kilojoule labelling on our menu boards and nutritional info on our website. • We’ve reduced the sodium levels across our core chicken menu options by 6.3%

Food: Responsible Marketing Promise

We don’t market to children under 15 years of age. KFC Australia was among the first to join the Australian quick service restaurant industry initiative for responsible advertising and marketing to children in 2008. We have strict Guidelines to ensure we comply with the Australian association of national advertisers (AANA) requirements relating to when and where we run our television commercials, and we continually review these.

Planet: Carbon Footprint Reduction Promise

Actively reduce energy consumption and greenhouse gas emissions across our restaurants and supply chain. We’re the only quick service restaurant system that reports carbon emissions for both company-owned and franchise restaurants to the National Greenhouse and Energy Reporting (NGER) scheme, established by the National Greenhouse and Energy Reporting Act 2007 (NGER Act). In 2013, KFC Australia became the first quick service restaurant to open a Leadership in Energy and Environmental Design (LEED) certified restaurant at East Maitland in New South Wales. In February 2015, we opened our second LEED certifiable restaurant at Lidcombe, NSW. We continue to build restaurants with sustainable credentials and learn from our existing restaurants, continuously improving our restaurant sustainability designs and credentials. We’re making good progress, incorporating energy and water efficient practices, as well as sustainable materials and technology, to reduce our environmental footprint.

Planet: Sustainable Packaging Promise

Eradicate single-use plastics, replace paper-based packaging with fibre-based packaging, become leaders in the design, production and use of food-grade recycled plastics. All QSRs produce a lot of packaging, but we’re determined to be as sustainable as possible. From our boxes to our world-famous buckets, we are constantly innovating to be more environmentally friendly.

Planet: Waste Reduction Promise

Find new ways to recycle, upcycle, reuse and divert waste across the kfc family. Given the size of our presence in Australia, we have a big responsibility to ensure efficient recycling and waste diversion initiatives are continually being developed. We’re proud to be partnering with industry and waste service providers on full lifecycle approaches, including options for end-of- life upcycling.

Planet: Ethical Supply Chain Promise

Build a responsible supply chain that protects forests, respects human rights, supports animal welfare and enables good stewardship of our planet. We are committed to conducting business in an ethical, legal and socially responsible manner. As part of our obligations under the Modern Slavery Act 2018 (Cth) (MSA), we are taking steps to identify and eliminate the risk of modern slavery occurring within our operations and supply chain.

KFC Sustainability Actions