Universal Registration Document - Fiscal 2023

2. Corporate responsibility at Sodexo

Focus on Fundamental Rights at Work

Fundamental human rights at work are standards that govern the treatment of all employees. As a company founded on strong values and principles, Sodexo is committed to respecting these rights in accordance with local and national laws in the countries in which we operate. By signing the United Nations Global Compact in 2003, we formalized our commitments as a responsible company. We do everything possible to make our employees aware of our commitments in these areas.

The Sodexo Human Rights Statement is based on the United Nations Guiding Principles on Business and Human Rights, the Universal Declaration of Human Rights and the Organization’s Declaration International Labor Organization (ILO) relating to fundamental principles and rights at work. It covers the workplace, but also business connections, communities, reporting concerns, due diligence and transparency.

To complete the Group’s human rights risk mapping, the Ethics Department mapped the risks related to fundamental rights at work for Sodexo’s on-site operations according to external indicators provided by Verisk Maplecroft (risk management platform). This map ranks countries based on their human rights risks in four areas: Freedom of association and collective bargaining, Effective abolition of child labor, Working conditions and eradication of forced labor, Non- discrimination and inclusion. The countries’ mitigation plan, such as policies and processes, were also taken into account. The methodology defines the risk exposure score and a unique mitigation plan for each country.

Action plans have been defined, adjusted to the results of these risk maps. The tools available to entities are a practical guide and an e-learning module containing best practices and examples. More than 27,000 managers have received training on fundamental rights at work.

In 2023, it was decided to place a particular focus on human rights risks linked to the practices of certain Sodexo strategic partners, who work with clients in countries where Sodexo is not present. A project was launched to better identify risks and possible actions by Sodexo given its role and influence. An action plan is being developed; the measures envisaged are reinforced due diligence on these partners, training and development of tools for internal actors in contact with them, or even dedicated support for these partners to help them increase their skills on these subjects.

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.