Universal Registration Document - Fiscal 2023

2.8 Our reporting methodology

2.8.1 Non-financial Indicators

Choice of indicators

In Fiscal 2023, we continue to disclose our Corporate Responsibility related information and data in our Integrated Report (chapter 1) and chapter 2 of the present report.

As part of the Integrated Report we have presented our Value Creation Model, our Materiality Matrix and our Corporate Responsibility Roadmap Better Tomorrow 2025. These three elements are linked and interdependent.

Chapter 2 presents our 9 Better Tomorrow 2025 commitments, CSR Governance and the highlights of Fiscal 2023 and our key performance indicators as well as their progress compared to the previous year.

Starting Fiscal 2023, with Pluxee spin-off, we are only considering Sodexo On-site Services into our Better Tomorrow reporting roadmap. We have reviewed and aligned all impacted indicators and targets according to On-site Services relevance and application. As a result, our Fiscal 2023 Better Tomorrow indicators are calculated excluding Pluxee data and Fiscal 2022 results were recalculated for the same scope.

Sodexo’s Corporate Responsibility strategy requires that workforce and environmental performance be measured with clear indicators. These indicators take into consideration the decentralized and primarily client site-based nature of Sodexo’s operations and were selected to meet the following reporting objectives:

• to comply with legal requirements such as the European Non- Financial Reporting Directive;
• to address the expectations of other external stakeholders, including shareholders and rating agencies;
• to provide reporting that is consistent with the requirements of the Global Reporting Initiative (GRI) and the United Nations Global Compact.

In addition, Sodexo’s indicators:

• are key in allowing us to monitor progress in the areas identified as key topics following our materiality assessment;
• include measures of the tangible benefits Sodexo brings to its clients;
• enhance employee knowledge about Sodexo, increasing awareness and engagement;
• provide visibility on progress for Group and country management.

As part of its progressive journey, Sodexo has added some additional indicators this year and will continue to do so (see list of indicators).

Scope of consolidation

Indicators generally include all entities which are fully consolidated for financial reporting purposes, with the following exceptions:

• a new country added during the fiscal year is included in the reporting scope in the following fiscal year; and
• acquired entities are included as from the date of acquisition.

Additional restrictions may be applicable and are specified in the “Limits” on the next page.

Fiscal 2023 workforce indicators

Workforce indicators are consolidated for all Sodexo entities, except for:

• the number of training hours which excludes data from Germany;
• the number of days of absence for non work related accident or illness in India that has been restated from the total number of days of absence for Fiscal 2023 and Fiscal 2022;
• number of disabled employees as this information cannot be collected in all the countries where Sodexo operates.

Engagement rate published indicators reflect the results of the Fiscal 2023 Engagement survey, and were verified at a reasonable level of assurance at the time.

Fiscal 2023 societal and environmental indicators

Societal and environmental indicators are calculated and consolidated for entities representing over 99.8% of Group revenues.

In order to streamline the collection and reporting process for the societal and environmental indicators, we have changed the reporting period. The new reporting period starts on June 1 and ends on May 31.

Sodexo carbon footprint is extrapolated from reported activity data to cover 100% of the financial perimeter with operational control. The reported data concerns:

• 96.4% of revenues for Scope 1 & 2;
• 96.9% of food revenues and 94.5% of revenues for Scope 3 related to Supply Chain; and
• 79% of revenues for Scope 3 related to Business travel.

Carbon Footprint indicators

Definitions & Methodology

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 and heat district consumption for buildings and sites that Sodexo directly controls, as well as electricity for fleet.

Scope 3 Fuel- and energy-related activities are related to the upstream emissions of the energy consumed for Scope 1 & 2: transportation, production and losses related to energy consumption.

Scope 3 Upstream Leased Assets concerns the Sodexo offices, warehouse, central production units or other Sodexo sites where Sodexo doesn’t pay for the energy consumption.

Scope 3 Purchased goods & services include all purchases for our services, food and non-food goods and services.