Universal Registration Document - Fiscal 2023

2. Corporate responsibility at Sodexo

Scope 3 Upstream transportation & distribution concerns the distribution from our suppliers to the sites of Sodexo clients.

Scope 3 Business travel concerns the travels by plane, train, short-term leased cars and taxis.

Scope 3 Employee commuting concerns the travelling of Sodexo employees on their workplace, both for on-site employees and office workers.

Scope 3 Use of Sold Products concern the energy consumption and refrigerants leakage related to Sodexo services on the client sites. They are due to Foodservices, Cleaning services and Landscaping services, where Sodexo directly uses energy through the equipments it operates.

Scope 3 Waste Generated in Operations concerns the back-of-house waste: office paper, personal protective equipment, pre-consumer food waste and other waste directly controlled by Sodexo in its operations.

Scope 3 End-of-life treatment of sold products concerns the front-of- house waste, happening after client or consumer use, at the end of Sodexo services: post-consumer food waste, Foodservices packaging, hygiene paper.

Databases

The following databases are used for the calculation of Sodexo carbon footprint:

  • International Energy Agency (IEA) the UK Government GHG Conversion Factors for Company Reporting, ADEME Carbon Base, U.S. EPA, Canada National Inventory Report, Australia National Greenhouse Accounts (NGA) and AIB are used to calculate all energy-related emissions: Scope 1, Scope 2, Scope 3 Use of Sold Products, Scope 3 Fuel- and energy-related activities, Scope 3 Upstream Leased Assets);
  • Agribalyse v3.1 (ADEME) and EcoInvent v3.9 (Allocation cut-off) are used to calculate emissions related Scope 3 Purchased goods & services, Scope 3 Upstream transportation & distribution;
  • the UK Government GHG Conversion Factors for Company Reporting is used for other indicators such as Scope 3 Waste generated in Operations, Scope 3 End-of-life treatment of sold products, Scope 3 Business travel and Scope 3 Employee Commuting.
Improvements in Fiscal 2023

A new methodology has been created for Scope 3 Employee Commuting by adding travel patterns questions to the annual engagement survey Voice.

Scope 3 Use of Sold Products has been reestimated from Fiscal 2017 to Fiscal 2021 using Fiscal 2022 and Fiscal 2023 results.

Since Fiscal 2022, business travel includes expenses reimbursed by Sodexo for travels.

A new methodology has been created to account for Scope 3 Upstream Leased Assets based on Scope 1 & 2 reporting and square metering.

In Fiscal 2023, Scope 3 Waste generated in operations and End-of- life treatment of sold products were separated (previously reported only in End-of-life treatment of Sold products).

In Fiscal 2023, an inflation correction has been applied for purchased reported in spend (for non-food goods & services).

For all scopes, a new methodology has been created in Fiscal 2023 and applied to all previous years to account for the changes in financial perimeters. All acquisitions and divestment are now accounted, and updated every year.

Finally, a re-baselining process has been carried out to correct the data used for Fiscal 2017 baseline on purchased goods and services. The following countries have participated: China, Finland, France,

India, USA, Canada, Qatar, United Arab Emirates, Singapore, Sweden, United Kingdom, Ireland, Italy and Austria.

More information on the methodology is available on Climate Transition Plan on Sodexo website.

Better Tomorrow indicators

Pluxee spin-off has a direct impact on some of Sodexo Better Tomorrow commitments and objectives.

Two of them have been reviewed to account for the continued activities only:

% of employees trained in sustainable practices, was changed to - % of on-site management and senior leaders trained in sustainable practices.

Business value benefiting SMEs, was changed to – spend with SMEs.

The methodology calculation for other two commitments has also been adapted:

% of employees working in countries with gender-balanced management calculation methodology has been adapted for two countries: India and Brazil. The new methodology takes into account the cultural, societal, and legal requirements and societal boundaries in those countries.

The target for the Number of women empowered in communities, has been now set to 180, 000 taking into account Pluxee exclusion.

Reporting framework and tools

Each year, Sodexo endeavors to improve its processes and to this end, has implemented a reporting tool with two modules for gathering and consolidating information.

Consistency checks are embedded within the tools and additional control testing is performed.

The consolidation of workforce data is performed by Group Human Resources with the exception of the Health and Safety data which is consolidated by Group Health and Safety and the consolidation of environmental data is performed by Group Corporate Responsibility. Certain strategic workforce indicators are consolidated monthly or quarterly for a detailed follow up.

All information published in this report was also examined by the Group’s external auditors; more details of the assessment are presented in section 2.8.4 of this document.

In addition to the “limited assurance” delivered by the external auditors in relation to indicators published for the requirements of the European directive, Sodexo obtained a higher level of assurance called “reasonable assurance” for some key indicators.

Limitations

Sodexo employs 430,000 people, in 45 countries, with differing regulations and operates on a significant number of client sites of different sizes and types of activity.

Certain indicators therefore require some specific explanation as follows: