Fiscal 2020 Universal Registration Document

2.2 EXTRA-FINANCIAL REPORTING

The Covid-19 pandemic had a significant impact on our performance and affected many indicators. Nevertheless, our extra-financial indicators, especially around our ambition to reduce carbon emissions and preserve resources, progressed positively. On that front, WasteWatch, our program to prevent food waste is producing significant results, as are our efforts to build a sustainable and responsible supply chain.

In addition, the Covid-19 crisis brought to light the validity of our approach to strategic Human Resources management, especially regarding talent management and training. Our staff  showed remarkable mobilization and resilience throughout the crisis, and their commitment was measured directly in the field.

2.2.1 420 000 employees serving clients and consumers

The health crisis experienced during the second half had a significant impact on the number and distribution of employees by region and segment. The most impacted regions are mainly North America and Asia. In Europe, government support measures helped to mitigate the impact on employees. In order to limit the impact of the crisis on our employees, Sodexo implemented a number of initiatives, such as:

• the creation of the Sodexo Employee Relief Program,  enabled by the reduction of the remuneration of  the Group’s key executives, to provide financial or material assistance to the most vulnerable employees on site, especially in regions where there is no government aid;
• the transfer of employees impacted by the slowdown in activity to other parts of the business or externally to companies in sectors with a higher level of activity and greater demand for staff .

2.2.1.1 Workforce by segment and activity

* Restated for inter-segment reclassification. 

The total number of employees has decreased by -10%, lower than the decline in revenue of -12% and in organic growth. During the Covid-19 pandemic, government assistance such as partial unemployment schemes implemented in some European countries, helped to retain employees without Sodexo bearing the full cost. As of August 31, 2020, we have 3,000 unpaid employees and 26,000  benefi ted from partial unemployment schemes. The number of employees was reduced by 38 ,000 employees across all segments due to  the health crisis.

In the Business and Administrations segment, the decrease in the number of employees was primarily due to the decline in activity in Corporate Services and the sudden stop of Sports & Leisure activity in North America and Europe which occurred mid-March.