Fiscal 2022 Universal Registration Document

6 CORPORATE GOVERNANCE

FUNDAMENTAL RIGHTS AT WORK
Focus on Fundamental Rights at Work

Fundamental Human Rights at Work are standards for the treatment of all employees. As a company built on solid values and principles, Sodexo is committed to respecting these rights in accordance with the local and national laws in the countries in which we operate. With the signature of the United Nations Global Compact in 2003 we formalized our commitments as a responsible company. We make every effort to create awareness among our employees of our commitments in these areas in this regard, The Sodexo Statement of respect for Fundamental Rights at Work is based on the UN Guiding Principles on Business and Human Rights, the Universal Declaration of Human Rights and the International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work. It covers the workplace, but also business relationships, communities, reporting concerns, due diligence and transparency. It is accompanied by a guide and an e-learning that provides best practices and examples. Over 16.000 managers have been trained on Fundamental Rights at Work. To supplement the Group’s human rights risk mapping, the Ethics Department has mapped the Fundamental Rights at Work risks in Sodexo On-site operations based on external indicators provided by Verisk Maplecroft databases and internal indicators (risk management platform). The map ranks countries according to their human rights risk in four areas: Freedom of association and collective bargaining, Effective abolition of child labor, Working conditions and elimination of forced labor, Non-discrimination & inclusion. Country mitigation plans, such as policies and processes, have also been taken into account. The methodology defines a risk exposure score and a unique mitigation plan for each country.

Focus on Sodexo ESG Program for Uniform Suppliers

The textile industry is a major source of employment in developing countries and is tied to ongoing systemic violations of fundamental rights in the workplace. The selection of the uniforms category is based on the risk profile of these suppliers, combining their geographic location, the product category and the reputational risk for Sodexo.

Sodexo ESG program which aims at addressing compliance to the Sodexo Supplier Code of conduct, includes:

  • audit conducted by third party experts;
  • corrective action plan (including target achievement date for each action);
  • Ongoing monitoring and progress follow-up.

During the last Fiscal Year, 100% of global providers were evaluated, including 100% in a follow-up audit. Through monitoring and improvement plans implemented with the partners over the last two years, the suppliers have achieved a low level of risk.

The audits that have been completed by a third-party auditor have all resulted in corrective action plans that are jointly followed up by Sodexo and the Tier 1 supplier, these actions plans have resulted in at least one corrective action. At the end of the Fiscal Year there is no global supplier ranked as “high risk” because of the corrective actions that have been implemented. Last but not least, for the coming years, for the Uniforms category, we have decided to extend our ESG supplier program beyond Tier 1 suppliers to include Tier 2 suppliers.