Fiscal 2022 Universal Registration Document

6 CORPORATE GOVERNANCE

STAFF SHORTAGES AND RESOURCE PLANNING
Staff shortages due to significant pressure on the labor market and non-availability of required skills resulting in possible inability to meet client needs in terms of both workforce and know-how
Category: People

Impact

On a global scale, Sodexo’s ability to recruit enough employees is influenced by:

  • perceived attractiveness of the jobs available;

  • the availability of the required skills (e.g. chefs);

  • competition with other sectors for the same pool of people.

Post-pandemic, there is intense competition to recruit staff across the food services, hospitality and events sectors, resulting in a global staff shortage in the short-term. An inability to recruit enough staff or to recruit staff with the right skill set could result in client contracts not being served properly. This could lead to:

  • client dissatisfaction;

  • possible contractual penalties;

  • lower revenue and reduced profitability on-site.

Examples of Mitigating Activities

  • Dedicated site-based employee attraction and retention strategies launched and tracked across all regions.

  • Careful monitoring of pay and benefits to ensure competitiveness.

  • Development and activation of a clear global employee value proposition.

  • Incorporation of employee retention into annual objectives for site managers and above.

  • Development of blended learning programs to incorporate both in-person and virtual training opportunities.

  • Design of competency models and career paths to help employees develop within the Company.

  • Employee referral programs.

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FOOD SERVICES AND WORKPLACE SAFETY
Consumer illness or injury caused by technical services, consumer illness caused by food services, work-related Injury/illness of Sodexo employee or contractor.
Category: Corporate Responsibility

Impact

Ensuring the safety of consumers, clients and Sodexo employees is a critical priority. Potential illness, injury or loss of life of consumers, clients or Sodexo employees could mean:

  • loss of client confidence in Sodexo;

  • significant lost time due to injury and illness;

  • fines and potential litigation;

  • impact on Company reputation.

Examples of Mitigating Activities

  • Appropriate use of Personal Protective Equipment.

  • Reinforcement of existing global HSE safety policy and standards for food safety, personal hygiene and infection control.

  • Medical Advisory Council, a multi-disciplinary team that advises on measures to ensure safe procedures that adhere to all local regulations.

  • Sodexo Safety Nets – seven measures for accident prevention.

  • Employee training.

  • Leadership Safety Walks.

  • Incident and accident reporting.

  • Quick Share process to share lessons learned from investigations.

  • Global HSE Committee that reviews incidents and the effectiveness of processes on a quarterly basis.

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ENVIRONMENTAL IMPACT
Adverse environmental impact from Sodexo’s activities: ineffective actions to mitigate climate change, poor management of food waste and resources
Category: Corporate Responsibility

Impact

  • Ineffective climate change actions could result in Sodexo’s carbon emissions staying the same or even increasing. Given its large footprint, this could have a significant impact on global warming and biodiversity loss. In addition, this could impact our client retention, investors' confidence and external trust and recognition.

  • Poor food waste and resource management could result in a loss of client and consumer confidence and a decreased ability to attract new clients.

Examples of Mitigating Activities

  • Partnership with WWF since 2010 focused on reducing the Company’s environmental impact, achieving its carbon reduction target and managing its CSR strategy.

  • Measurement and tracking of Sodexo's carbon footprint (upstream and downstream).

  • Member of the Climate Group’s RE100 initiative with a commitment to switching to 100% renewable electricity by 2025 at directly operated sites.

  • Developing and deploying a carbon trajectory tool with partner Traace to help Sodexo teams create their carbon reduction roadmap.

  • WasteWatch global program to reduce food waste.

  • Connecting financing costs of the Group to action on food waste performance.

  • Implementing a long-term incentive plan, including a sustainability index.

  • Roll-out of plant-based recipes in units using ingredients selected for their lower environmental impact and higher nutritional value.

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