Fiscal 2020 Universal Registration Document

2. Management report

Certain strategic workforce indicators are consolidated monthly or quarterly for a detailed follow up as part of the STEP dashboard.

All information published in this report was also examined by the Group’s external auditors.

In addition to the “limited assurance” delivered by the external auditors in relation to indicators published for the requirements of the European directive, Sodexo obtained a higher level of assurance called “reasonable assurance” for the following key indicators:

  •  total workforce, per activity and client segment; 
  • retention rate for total workforce;
  • retention rate for site management;
  • departures related to Resignation of Continuous Contract > 3 months (Excluding Site Loss); 
  • % of women on the Board of Directors; 
  •  % of women on the Executive Committee; 
  • % of women among Group Senior Leaders; 
  • % of women in management positions; 
  • % of women in total workforce; 
  • number of work related accidents requiring leave (LTSC); 
  •  % of Group revenues of countries having one or more OHSAS 18001 or ISO 45001 certification; 
  •  % of spend with contracted suppliers having signed the Sodexo Supplier Code of conduct; 
  • % of spend on certified sustainable paper disposables as a % of total paper disposables. 
Limitations

Sodexo employs 422,712 people, in 64 countries, with differing regulations and operates on a significant number of client sites of different sizes and types of activity.

  •  Certain indicators therefore require some specific explanation as follows:
    • number of work-related accidents requiring leave:
      • – excludes commuting accidents,
      • – includes Sodexo workforce only,
      • – excludes temporary labor, sub-contracted labor and other personnel that are not Sodexo employees,
      • – may have insignificant differences created by the way that work-related illness is accounted for locally;
    • average number of days absence:
      • – includes absences for work-related accidents and illness as well as personal accidents and illness,
      • – may have insignificant differences created by the way the number of days of absence is accounted for locally; as some include weekend and others only working days, the minimum number of days of absence from which the absence is recorded;
    • number of training hours:
      • –the number of training hours in the U.S. is based on an estimation. The estimation is an extrapolation of actual data covering 15% of the population.
  • Certain information is extremely difficult to gather given the nature of the Group’s activities:
    • total business value benefitting SMEs: Data for Sodexo On-site Services USA includes non-contracted suppliers;
    • 22 % of the total volume of fish and seafood purchased by Sodexo cannot be categorized as per Sodexo Seafood Guide (green, orange or red species), thus the result for Fiscal 2020 is underestimated. A process will be put in place to eliminate this limit next year;
    • to ensure that the entire volume of Sodexo palm oil is certified as sustainable, the purchasing teams have implemented a process for analyzing and purchasing RSPO credits between the months of May and April following the end of the fiscal year;
    • number of empowered women in communities: this indicator allows the monitoring of one of our Better Tomorrow 2025 objectives and is calculated on the basis of 3 types of programs and initiatives aimed at the empowerment of women:
      • – specific programs led by Stop Hunger,
      • – specific programs led by the Diversity and Inclusion teams, in particular She Works,
      • – the number of women-owned SMEs in our supply chain;
    • food waste reduction: this indicator allows the monitoring of one of our Better Tomorrow 2025 objectives and is calculated through the WasteWatch program. The waste reduction is expressed as a volume of waste reduced compared to an observed reference period (generally for a period of 3 weeks minimum). The measurement is carried out daily, at each site using connected scales;
    • Scope 1 and Scope 2 energy consumption and related carbon emissions are extrapolated for the Group based on the energy consumption and carbon emissions calculation for a set of 25 major countries representing 84.3% of Group revenues;
    • Scope 1 includes energy consumption and carbon emissions related to the fuel consumed by vehicles used by Sodexo as well as from its consumption of natural gas for the offices and sites where Sodexo has operational control;
    • Scope 2 includes the electricity consumption for the offices and sites where Sodexo has operational control and is market-based;
    • this year, for the second year in a row, we are publishing our supply chain Scope 3 emissions which correspond to indirect emissions, based on actual data covering 90.4% On-site activity revenues. The emissions were thus extrapolated to 100% of the activity;
    • certain heterogeneities in the reporting methods for emissions linked to commodities transport are observed, particularly in France and the United Kingdom. Consequently, for these two countries, the emissions are slightly overestimated, because they take into account the emissions linked to the transport from production location to the transformation location and not the transport from the last point of transformation to the delivered site. The calculation of carbon emissions related to the supply chain takes into account the following elements:
      • – a list of 30 commodities must be compiled by the different countries, which corresponds to 90% of the total purchased in 2014. The rest is optional. We then estimate the emissions for the remaining 10%. If the estimate is greater than the reported total, we consider the estimated emissions. If the country’s reported total is greater (this is the case for countries reporting optional commodities), we consider the reported emissions,
      • – transportation from the last point of processing to the delivered site,
      • – emission factors by product (when the emissions factors are not available, for example for prepared foods – we calculate the emissions based on the main ingredients).
      • One of Sodexo’s missions is to improve quality of life for its employees and all who it serves. Sodexo’s services are, in the majority of cases, provided by its own employees on a significant number of client sites where the Company operates throughout the world. The following information is therefore not applicable or not material for Sodexo:  
        • preventive or corrective actions with regard to discharges into the atmosphere, water and soil with a significant negative impact on the surrounding environment;
        • consideration of noise and any other activity-specific pollution;
        • land usage;
        • importance of sub-contracting.