Fiscal 2021 Universal Registration Document

3. Fiscal year activity report

3.1.4 Working towards a Better Tomorrow

Sodexo is advancing along its Better Tomorrow 2025 roadmap, which is guiding our route towards our nine objectives set in 2017. Some of these objectives are more challenging than others, but despite the pandemic, there are great things being achieved in Fiscal 2021:

  • we have an Employee engagement target at 80% for 2025. In the latest survey we reached 78.3%, coming out of the pandemic, and just slightly below last year’s level of 80.1% in the midst of the pandemic;
  • we are also doing well in integrating SMEs into our value chain, reaching a value of 6.9 billion euro in Fiscal 2021, up from 4.5 billion euro in the previous year, and on track for 10 billion euro by 2025;
  • in Fiscal 2021 Scope 3 supply chain carbon emissions are down 23.2% versus the base line of 2017. The 2025 objective is to achieve a 34% reduction in total Scope 1, 2 and 3 emissions against the base line. This target has been approved by the Science Based Targets initiative (SBTi) and is in accordance with the Paris Agreement 1.5°C scenario. Since 2017, Sodexo has already reduced its direct greenhouse gas emissions (Scopes 1 and 2) by 37.2%, more than the objective;
  • waste reduction of 45.8% has been achieved in the 878 sites reporting in Fiscal 2021, in line with the 2025 objective of 50%. Despite the program delay due to a lot of sites being closed or at very low levels of activity, implementation is now picking up fast. We had 878 reporting in Fiscal 2021 vs 291 in Fiscal 2020. Currently we are getting to 1,300 sites deployed;
  • this year we have published a new KPI, which we have been putting in place for several years. Today, 73.8% of our sites provide consumers with a healthy lifestyle option. This compares to our 2025 objective of 100%.

3.1.5 New chapter, new leadership for Sodexo

On July 27, 2021, the Group announced that the Board had decided to launch a search for a new Chief Executive Officer, to enable the Group to strengthen its competitiveness and accelerate its transformation while confronted by post-Covid challenges. Our environment is significantly influenced by the acceleration of new consumer behaviors and trends, by digital and technological disruptions, and the emergence of new business models. This new phase should enable the Group to rapidly adapt to the expectations of its clients and consumers and return to solid, profitable, and responsible growth over the long term.

As a result, Denis Machuel left the Group on September 30, 2021.

The Board of Directors thanked Denis Machuel, who joined the Company in 2007 and was appointed CEO in January 2018, for his contribution to Sodexo’s development and for having lived by its values. In particular, the Board salutes his eff orts to relaunch the growth momentum, which was interrupted by the Covid-19 crisis, and for having initiated the Group's digitalization and strengthened its CSR commitments. During the difficult period of the pandemic, his leadership and action contributed greatly to the Group's resilience and agility in weathering the crisis.

To ensure the operational continuity of the Company during the search, Sophie Bellon will act as interim CEO.

The search is oriented towards an international profile, with experience in North America, in corporate restructuring and digitalization of the business model.

3.1.6 Organizational changes for transition

Sophie Bellon took over as Interim Chief Executive Officer on the departure of Denis Machuel on September 30, 2021. The key elements of this transition are :

  • to enhance efficiency in Schools and Government & Agencies, the segments will now be managed regionally. As a result, each Region/Country chair will be responsible for the segment in his region. These two segments are significant in North America, the UK and France;
  • a Transition Committee, composed of 12 people and chaired by Sophie Bellon, has been created to steer progress on the priorities defined for the transition period, manage business performance and prioritize projects and investments. This committee is composed of representatives of the activities, segments, regions and functions;
  • Key Strategic priorities of the Transition Committee during the transition period are :
    • boost US growth,
    • accelerate the food model transformation,
    • manage more actively our portfolio,
    • enhance the effectiveness of our organization.

3.1.7 Evolution of the Board of Directors

  • Emmanuel Babeau has decided not to seek reelection at the next Shareholders Meeting due to increased responsibilities at PMI. The Board warmly thanks Emmanuel Babeau for his extensive contribution to the Board’s discussions, in particular, on performance, strategy and financial matters, as well as his active participation on the Audit and Compensation Committees.
  • Jean-Baptiste Chasseloup de Chatillon will be proposed as a new member of the Board and Audit Committee. He is Executive Vice President and Chief Financial Officer of Sanofi, since 2018. Before joining Sanofi, Jean-Baptiste Chasseloup de Chatillon was Finance Director and member of the Management Board and Executive Committee of PSA-Peugeot Citroën, where he spent nearly 30 years in different finance, commercial and operational roles in several European countries. He brings significant experience in mergers and acquisitions, organizations’ transformation, financing and information technology.
  • Should all the resolutions concerning the appointment and reelection of Board members be approved at the Shareholders Meeting, 70% of its elected members will be independent and 60% will be women.
  • Luc Messier will join the Nominating Committee. He will bring his strong understanding of different cultures given his experience living and working in several countries in Europe, Asia, and North America. The Committee now has a majority of independent members and remains chaired by an independent Director.