35% of YUM! Brands Shareholders Vote For The Company To Increase Transparency In Its Supply Chain’s Impact On Deforestation
SumOfUs is encouraged by shareholders' support for the proposal and urges Yum! Brands to take immediate action.
SumOfUs, an international consumer advocacy group, expresses its praise that more than 1 out of 3 shareholders voted for YUM! Brands to stop lagging behind other companies and fully commit to a cross-commodity no deforestation policy. Supported by Institutional Shareholder Services (ISS), SumOfUs’ proposal gathered 35% of the votes, 3 percent more than last year, despite the company advising against it, signaling that a growing number of YUM! Brands shareholders have a strong commitment to mitigating deforestation risks in the company’s supply chains.
YUM! Brands is the world’s largest fast food company and is the owner of notable chains such as Pizza Hut, KFC, and Taco Bell.
YUM utilizes beef, soy, palm oil, and pulp/paper in its restaurants across the world. These commodities are the leading drivers of deforestation globally. YUM’s limited action addressing deforestation sets the company behind its peers and exposes the company to significant business and market risks, including supply chain disruption, damage to the company’s reputation, physical risks to the Company’s supply chain, and failure to meet shifting consumer and market expectations.
A recent study from Stanford University highlights the undeniable role that deforestation is playing in increasing the likelihood of deadly viruses like Covid-19 jumping from wildlife to humans. Over the past few years, petitions gathering close to 500,000 signatures have been calling on the owner of Pizza Hut, KFC, and Taco Bell to take deforestation off the menu. SumOfUs believes that now more than ever, YUM! Brands needs to take meaningful action to tackle deforestation in its supply chain and increase transparency and reporting.
In response to the vote Fatah Sadaoui, Campaign Manager at SumOfUs, released the following statement “This year, 35% of YUM! Brands shareholders voted for more transparency towards reducing deforestation in YUM!’s supply chain. Last year it was 32%, the message is clear, a growing number of shareholders are asking YUM! Brands to take immediate action on deforestation.
This historic vote is even more important as the world is battling with a pandemic scientists say was likely the product of massive deforestation. This vote also comes on the dawn of a catastrophic summer for forests and biodiversity around the world, as fires are already starting to spread from Brazil to Indonesia. YUM! Brands reckless sourcing not only threatens biodiversity it is also fueling climate chaos.
Last year, Yum! Brands chose inaction and greenwashing, contributing to one the worst catastrophes our planet faces. Palm oil, soy, beef, and timber are the lead drivers of deforestation globally, which accounts for 10% of heat-trapping emissions. This year, unless YUM! Brands catches up with its industry peers and takes meaningful action to tackle deforestation in its supply chain, deforestation will be all over its restaurants’ menus.”
SumOfUs.org is a global movement of consumers, investors, and workers all around the world, standing together to hold corporations accountable for their actions and forge a new, sustainable and just path for our global economy.