Reconciliation tables are available on the Fiscal 2022 Universal Registration Document. If you want to know more, we invite you to consult this document available on our website.
In accordance with the European Union (EU) regulation 2020/852 of June 18, 2020 and its delegated acts (referred to as the “Taxonomy” regulation), Sodexo is required to publish, for Fiscal 2022, performance indicators that highlight the proportion of its eligible revenues, investments (CapEx), and operating expenditure (OpEx) associated with economic activities considered to be sustainable within the meaning of this regulation and its delegated acts for the first two climate-related targets regarding climate change mitigation and adaption(1).
The methodology elements on the basis of which the Group based its analysis – definitions, assumptions, and estimates – are described below.
The financial information used to conduct this initial analysis was subject to self-assessment by country teams and additional reporting as part of the year-end closing. The indicators were reviewed and analyzed jointly by Corporate Responsibility and Finance teams, and supported by third-party experts, in order to ensure consistency of the decisions regarding eligibility and consistency with Fiscal 2022 consolidated revenue, investments and operating expenses.
Corporate responsibility has always been at the heart of our mission and everything we do. Despite limited Taxonomy-eligible activities today, we are convinced that our services bring positive impact to our employees, consumers, clients, suppliers, and shareholders. For details on our Corporate Responsibility approach, please refer to chapter 2 of the Universal Registration Document.
In Fiscal 2023, the Group will review and adapt its methodology and eligibility analysis as the introduction of the Taxonomy progresses and in light of changes to the regulations, listed activities and technical review criteria. The concept of alignment, provided by the regulation with effect from the next fiscal year, will be addressed by the Group in the next Universal Registration Document.
Sodexo carried out a review of its On-site Services and Benefits & Rewards Services activities in its most significant countries in terms of revenues and investments (CapEx), with a view to determining which are likely to be eligible within the meaning of the EU Taxonomy and its delegated act for climate change mitigation. No activity was considered eligible for the climate change adaptation objective.
As of today, Food services and Benefits & Rewards services activities are not considered as eligible in the meaning of the EU Taxonomy for the Climate change mitigation objective and only some Facilities Management services provided by Sodexo are included in the EU taxonomy:
Based on existing reporting processes, systems and estimates formulated by management and the subsidiaries, less than 2% of consolidated revenues have been identified as eligible in the meaning of the Taxonomy.
Sodexo’s eligible CapEx includes:
The eligible CapEx identified mainly corresponds to increase of right-of-use assets related to leases on buildings and vehicles (Taxonomy activities 7.7 Acquisition and ownership of buildings and 6.5 Transport by motorbikes, passenger cars and light commercial vehicles respectively).
Following this analysis and before specific review of technical screening criteria, eligible CapEx was assessed at about 7% of Total CapEx as defined by Taxonomy Regulation (518 million euros in denominator including additions and scope entrance of tangible and intangible assets as well as right-of-use assets).
Operational expenditure within the meaning of the Taxonomy Regulation is limited to costs linked to direct non-capitalized research and development, direct maintenance, and renovation of Sodexo assets (including direct cost of employees), and direct short-term leases. Given that the operational expenditure was less than 10% of Group operating expenses, Sodexo has used the exemption provided in the regulation and has not published the performance indicator for eligible OpEx.
(1) Climate delegated regulation of 4 June, 2021 and the appendices thereto supplementing (EU) regulation 2020/852 by specifying the technical criteria for determining under what conditions a business activity can be considered as making a substantial contribution to climate change mitigation or adaptation; European Commission delegated regulation 2021/2178 of 6 July, 2021 and the appendices thereto, supplementing (EU) regulation 2020/852 specifying the method for calculating the key performance indicators and the narrative information to be published.
