Business & Sustainability Report - Fiscal 2023

OUR RISK MANAGEMENT APPROACH

Sodexo has put a well-defined process in place for identifying, assessing and managing risks at the appropriate level within the organization; from colleagues working on-site, to our senior executives looking at strategic risks for their activity (see diagram). Measures to manage the risks identified are implemented at site, country, regional or global level depending on their nature. The progress of those action plans is monitored and reported to senior management on a regular basis.

Operational Executives are assisted by transversal support functions, who define the procedures and standards and provide tools and processes to help manage risks. Internal Audit carries out an independent assessment of risk management and makes recommendations for improvement. Overall responsibility for the robustness of risk management procedures lies with Sodexo Leadership Team, while Sodexo’s Board of Directors and the Audit Committee provide risk oversight, ensuring that procedures are functioning effectively.

MAIN RISKS

Each year, a risk profile is established based on the risk assessments senior management performs with regard to the main entities, and also on interviews with senior executives. The risks considered to be the most significant for Sodexo as of August 31, 2023, are presented in this table.

Compared with the previous year’s risk profile, pandemic risks have been taken out. Climate disruption exposure, which was included as an emerging risk for Fiscal 2022, is now considered as a principal risk.