Fiscal 2022 Universal Registration Document

Calculation methodology

Scope 1 & 2

Scope 1 includes energy consumption and emissions associated with the vehicle fleet, as well as fossil fuel consumption in directly controlled buildings.

Scope 2 includes electricity consumption for buildings and sites that Sodexo directly controls.

Emissions linked to energy consumption in scope 1 & 2 are calculated using internationally recognized databases, such as: the International Energy Agency (IEA), the UK Government GHG Conversion Factors for Company Reporting, ADEME Carbon Base, US EPA, AIB.

Scope 3 – Supply chain

Emissions are calculated using consolidated volumes by type of commodity, applying emission factors including the entire life of the products before purchase (production and agriculture, land use, processing, packaging, transport). The last part of the distribution to client sites is added next.

The databases used are Agribalyse v3.0.1 (ADEME) and EcoInvent v3.8 (Allocation cut-off).

For Fiscal 2022, we have recalculated the data for previous years in order to take into account the improvement in methodology:

The last part of the distribution was overestimated for Fiscal 2017, and has been updated using the history of the last three years of reporting.

The emission factors used in previous years have been corrected to take into account emissions related to consumption weight rather than live weight at the farm gate for meat.

Scope 3 - Business travel

The data is reported by our main suppliers (for planes and trains) and supplemented by specific reporting related to the reimbursement of our expenses.

Reporting framework and tools

Each year, Sodexo endeavors to improve its processes and to this end, has implemented a reporting tool with two modules for gathering and consolidating information.

Consistency checks are embedded within the tools and additional control testing is performed.

The consolidation of workforce data is performed by Group Human Resources with the exception of the Health and Safety data which is consolidated by Group Health and Safety and the consolidation of environmental data is performed by Group Corporate Responsibility. Certain strategic workforce indicators are consolidated monthly or quarterly for a detailed follow up.

All information published in this report was also examined by the Group’s external auditors; more details of the assessment are presented in section 2.7.4 of this document.

In addition to the “limited assurance” delivered by the external auditors in relation to indicators published for the requirements of the European directive, Sodexo obtained a higher level of assurance called “reasonable assurance” for some key indicators.

Limitations

Sodexo employs 422,000 people, in 53 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 absence:
  • 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;
  • to be noted that in the United States, no distinction is made between part-time and full-time employees for the count of these absences that are overestimated
  • in Fiscal 2022 in the United States, some days of absence have been corrected with 2021 data due to reporting cut-off methodology.
• 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.
  • in France, the number of training hours is only captured for active employees as of 31st of August 2022, and doesn't capture all training hours followed by employees having left the Company during Fiscal 2022.

Certain information is extremely difficult to gather given the nature of the Group’s activities:

• total business value benefiting 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.

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.