Fiscal 2022 Universal Registration Document

2.7 Our reporting methodology

2 CORPORATE RESPONSIBILITY AT SODEXO

2.7 Our reporting methodology

2.7 Our reporting methodology

2.7.1 Non-financial Indicators

Choice of indicators

In Fiscal 2022, we continue to disclose our Corporate Responsibility related information and data in our Integrated Report (chapter 1) and chapter 2 of the present report.

As part of the Integrated Report we have presented our Value Creation Model, our Materiality Matrix and our Corporate Responsibility Roadmap Better Tomorrow 2025. These three elements are linked and interdependent.

Chapter 2 presents our 9 Better Tomorrow 2025 commitments, the highlights of Fiscal 2022 and our key performance indicators as well as their progress compared to the previous year.

Sodexo’s Corporate Responsibility strategy requires that workforce and environmental performance be measured with clear indicators. These indicators take into consideration the decentralized and primarily client site-based nature of Sodexo’s operations and were selected to meet the following reporting objectives:

  • to comply with legal requirements such as the European Non-Financial Reporting Directive;
  • to address the expectations of other external stakeholders, including shareholders and rating agencies;
  • to provide reporting that is consistent with the requirements of the Global Reporting Initiative (GRI) and the United Nations Global Compact.

In addition, Sodexo’s indicators:

  • are key in allowing us to monitor progress in the areas identified as key topics following our materiality assessment;
  • include measures of the tangible benefits Sodexo brings to its clients;
  • enhance employee knowledge about Sodexo, increasing awareness and engagement;
  • provide visibility on progress for Group and country management.

As part of its progressive journey, Sodexo has added some additional indicators this year and will continue to do so (see list of indicators).

Scope of consolidation

Indicators generally include all entities which are fully consolidated for financial reporting purposes, with the following exceptions:

  • a new country added during the fiscal year is included in the reporting scope in the following fiscal year; and
  • acquired entities are included as from the date of acquisition.

Additional restrictions may be applicable and are specified in the“Limits” on the next page.

Fiscal 2022 workforce indicators

Workforce indicators are consolidated for all Sodexo entities, except for:

  • the number of training hours which excludes data from Germany;
  • the number of days of absence for non work related accident or illness in Brazil that has been restated from the total number of days of absence for Fiscal 2022 and Fiscal 2021;
  • number of disabled employees as this information cannot be collected in all the countries where Sodexo operates.

Engagement rate published indicators reflect the results of the Fiscal 2021 Engagement survey, and were verified at a reasonable level of assurance at the time.

Fiscal 2022 societal and environmental indicators

Societal and environmental indicators are calculated and consolidated for entities representing over 99.3% of Group revenues.

In order to streamline the collection and reporting process for the societal and environmental indicators, we have changed the reporting period. The new reporting period starts on June 1 and ends on May 31.

Certain environmental indicators are applicable only to On-site Services or to Benefits & Rewards Services due to the nature of the indicator itself; for example, an indicator relating to the percentage of sustainable seafood purchased relates only to On-site Services entities which provide Food services.

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 97.1% of Group revenues.

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 94.8% of On-site Services revenues. Therefore, the emissions have been extrapolated to100% of On-site Services activity.