Fiscal 2021 Universal Registration Document

2. Corporate responsibility at Sodexo

Limitations

Sodexo employs 412,088 people, in 56 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 a 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 28% 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;
  • 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;
  • 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 major countries representing 95.3% 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;
  • emissions linked to energy consumption (Scope 1 & 2) are calculated from recognized databases such as: the International Energy Agency (IEA), UK Government GHG Conversion Factors for Company Reporting, ADEME Base carbone, US EPA, AIB. The supply chain emissions of Scope 3, corresponding to the categories “1. Purchased goods and services” and “4. Upstream transportation and distribution” of the GHG Protocol, are extrapolated from real data covering 93.2% of On-site Services revenues. Therefore, the emissions have been extrapolated to 100% of On Site activity.

The calculation of carbon emissions related to the supply chain takes into account the following elements:

  • the emissions of the 30 most important commodities for Sodexo (in terms of volume of purchase and carbon impact, as per a study conducted in 2014). These compulsory products represent 90% of our purchases, the remaining 10% are extrapolated to cover our total emissions;
  • transportation from the last point of processing to the delivered site;
  • emission factors by product, including all upstream emissions until the distribution point (production & breeding, transformation, packaging, transportation). When the emissions factors are not available, they are calculated based on the main ingredients used.

Methodology has been improved in Fiscal 2021 by the set up of:

  • the same definition has been applied to all countries for the calculation of transportation-related emissions;
  • emission factors have been updated and homogenized in order to limit the number of databases used. Factors used for meat have been increased, as they were previously underestimated, taking into account only the agriculture part. Databases used this year are:
    • EcoInventV3, Allocation cut-off,
    • ADEME/Agribalyse 3.01 included;
  • additional consistency checks have been brought to this perimeter such as the analysis of the ratio plant based proteins/animal proteins by country, significant variances of volumes, inconsistency of the data given the country activity, etc.

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.