Fiscal 2021 Universal Registration Document

Impact

Sodexo is a company of people serving people. Sodexo’s 412,000 employees are central to its long-term growth objectives. A lack of attention to employee performance management and development could lead to:

• a decrease in service quality jeopardizing retention and therefore long-term profitable growth; 
• reactive vs. proactive talent management, leading to loss of top talent.

In addition, the extended duration of the Covid-19 pandemic increases the risk that both front-line and back-office staff suffer from mental and physical fatigue. This could lead to Sodexo losing talented people to other job sectors.

Examples of Mitigating Activities

• Training and development programs to reskill and upskill Sodexo employees.
• Design of a new performance and reward framework to help retain, develop and motivate people. 
• Annual talent reviews at management level. 
• Global Next Generation Leader program designed to strengthen leadership bench. 
• Succession plans are included in executives’ individual objectives. 
• Sodexo Supports Me: Employee Assistance Program that provides counseling to help employees across the world meet the challenges of everyday life, both at work and outside.

Impact

In the context of the Covid-19 pandemic, client needs change on a regular basis in terms of services and volume. Sodexo must know how to adapt its resources in the short and medium term. Globally, Sodexo’s ability to develop the skills of its employees and adjust its workforce to adapt to client needs is influenced by:

demographic issues;

•  the constantly changing needs of our clients;
• a volatile regulatory environment; 
• the availability of the required skills.

Any inability to adjust the resources, skills and workforce could lead to client contracts not being served properly.

In particular, as the food services, hospitality and events sectors re-open, there is intense competition to recruit staff, leading to a global staff shortage in the short term.

Examples of Mitigating Activities

• Development of local training centers to skill current and future employees (e.g.; CEDEX in Latam, Food Services Apprenticeship Training Center in France). 
• Design of competency models and career paths to help employees develop within the Company. 
• Development and trialing of Strategic Workforce Planning in some segments (Energy & Resources) and regions (China) to better anticipate labor needs. 
• Development of operational and strategic plans including a skills and workforce dimension.

Impact

Ensuring the safety of consumers, clients and Sodexo employees is a critical priority (and particularly as the pandemic continues to make its presence felt in many countries).

Potential illness, injury or loss of life of consumers, clients or Sodexo employees could mean:

• loss of client confidence in Sodexo; 
• significant lost time due to injury and illness; 
• fines and potential litigation; 
• impact on Company reputation.

Examples of Mitigating Activities

•  Appropriate use of Personal Protective Equipment. 
• Reinforcement of existing global HSE safety policy and standards for food safety, personal hygiene and infection control. 
• Existance of a Medical Advisory Council, a multi-disciplinary team that advises on measures to ensure safe procedures that adhere to all local regulations. 
• Partnership with Bureau Veritas to establish the Rise Safe hygiene verification label for the health and safety services used by our clients. 
• Sodexo Safety Nets – 7 measures for accident prevention. 
• Employee training. 
• Leadership Safety Walks. 
• Incident and accident reporting. 
• Quick Share process to share lessons learned from investigations. 
• Global HSE Committee that reviews incidents and the effectiveness of processes on a quarterly basis.