Universal Registration Document - Fiscal 2023

6. Risk management

Sodexo's priority is to ensure that suppliers and subcontractors that deliver Sodexo products and services have the right skills, capabilities and potential to carry out the tasks assigned to them. Our risk management guidelines set out the procurement procedures that our teams are required to follow in terms of working with and managing suppliers and subcontractors. The level of the initial evaluation and the management procedures for suppliers and sub- contractors directly depend on the product supplied or service rendered. It includes verifying issues such as food safety and traceability, certification to conduct work, particularly in Facilities Management, along with financial due diligence checks. In line with the procurement policy, suppliers and subcontractors must sign the Sodexo Supplier Code of conduct which sets out Sodexo’s requirements for adopting responsible best practices concerning ethical, social and environmental issues.

Responsible Business Conduct

The Group’s standards for responsible business conduct are set out in the Business Integrity Guide. Sodexo employees must never compromise adherence to these standards for financial or other business objectives or personal gain. Sodexo does not tolerate any practice that is not born of honesty, integrity and fairness, anywhere in the world where it does business.

Corporate Responsibility

Since its creation in 1966, Sodexo’s purpose to improve the quality of life of our employees and those we serve, and contribute to the economic, social and environmental progress in the communities where we operate. We have formalized this commitment in our Corporate Responsibility roadmap, Better Tomorrow 2025.

Better Tomorrow 2025 focuses on Sodexo’s role as an employer, as a service provider and as a corporate citizen as well as on the impacts that it has on individuals, on communities and on the environment. It has nine commitments to action by 2025 with interim targets.

Sodexo’s commitment to the environment as a service provider is to source responsibly and provide energy management services that reduce carbon emissions. Since 2009, Sodexo has implemented a low carbon strategy. Our strategy considers the business opportunities, risks and their financial implications.

In particular, these commitments are demonstrated through the following actions:

  • long-term technical partnership agreement with World Wildlife Fund (WWF) to work on Sodexo climate strategy and its different components;
  • tackling food waste by engaging with Sodexo employees, clients and supply partners to provide innovative solutions like the program WasteWatch;
  • partnering with the Future 50 Foods Initiative. The Future 50 Foods Report identifies under-utilized plant-based foods that optimize nutrient density and reduce environmental impact. Sodexo has rolled out plant-based recipes containing the Future 50 foods in kitchens throughout the Group;
  • combined management focus on the achievement of the 34% carbon emissions reduction target, compared to 2017 baseline year.

In the area of nutrition considering the health and wellness of consumers, Sodexo is committed to food safety and encouraging our guests to develop good eating habits and healthy lifestyles. With the help of our nutritionists, we create balanced, nourishing meals adapted to the lifestyles and the diversity of the tastes of our consumers around the world.

In the area of social, economic and environmental development in the cities, regions or countries where Sodexo is present, we focus on the following actions:

  • supporting the fight against hunger through Sodexo's unique philanthropic cause, Stop Hunger;
  • working with local and small businesses and contributing to local economies through the Supplier Inclusion program which allows thousands of local businesses to integrate Sodexo’s supply chain;
  • promoting gender balance with a target of having at least 40% woman among Sodexo’s senior executives by 2025 (during Fiscal 2023 we reached 41% for this indicator and we are committed to ensuring that the Group maintains its lead on the subject of gender diversity and does not fall below 40%) and 100% of employees working within entities having gender-balanced management teams.

For detailed information on our Corporate Responsibility strategy, please see Chapter 2.

Human Rights at Work

Sodexo is committed to respecting human rights wherever it does business. This commitment, is supported by core policies and procedures which are based on international texts such as the Universal Declaration of Human Rights, the International Labor Organization’s Declaration of Fundamental Principles and Rights at Work; it is also based on the principles set forth in the OECD Guidelines for Multinational Enterprises and the United Nations’ Guiding Principles on Business and Human Rights.

The Sodexo Statement of Respect for Human Rights sets out standards for fundamental human rights at work. It covers the workplace, but also business relationships, communities, reporting concerns, due diligence and transparency. It is also accompanied by a guide and training that provides best practices and examples.

Health and safety policy and food safety policy

At Sodexo, we believe that all incidents are preventable. It starts with nurturing a Zero Harm health and safety culture. Our ambition is to be the safest place to work and the safest company to do business with. Sodexo’s Global Health and Safety and Food Safety Policies define our fundamentals and standard principles to guide our behaviors, responsibilities and commitments that include:

  • complying with legal, regulatory and internal standards as a condition of employment;
  • identifying, evaluating and managing risks;
  • ensuring adequate resources, training and capability;
  • personal accountability for people and food safety by speaking up to challenge unsafe behavior, stop unsafe work and promptly report incidents, near misses and unsafe conditions or behaviors;
  • fostering a Zero Harm mindset culture for people safety and for food safety from farm to fork;
  • protecting and promoting the safety of our food and the health of our consumers;
  • striving for operational excellence at every step in our health and safety and food processes;
  • monitoring and improving our health and safety and food safety performance.