Universal Registration Document - Fiscal 2024

Introduction

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 equipment 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 v3.1.1 (ADEME) and EcoInvent v3.10 (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 2024

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

Scope 3 Use of Sold Products has been restated from Fiscal 2017 to Fiscal 2023 due to improvements in the methodology and to more precise data availability .

Scope 3 Purchase goods & services has been updated for previous years following the reporting improvement in some product categories for all countries (some product emissions categories have been broken down into sub-categories). In addition, an inflation correction has been applied for purchases reported in spend (for non- food goods & services).

A re-stating process was conducted to correct the data for various years across different countries due to improved data quality collection. The adjustments were applied on specific purchased goods and services commodities in some countries such as France, Ireland, Australia, Italy, Mexico, Chile, USA, and India.

Improvements were also made for emissions reported for direct site operations in Sweden, Italy, Cyprus, Brazil, UAE, Singapore, and Germany, as well as for fuel data reported for the transportation in Colombia, and Chile.

Finally, emission factors were updated, mainly due to updates in the used databases, but also to reflect the improvement in the methodology - ensuring a better alignment of emission factors with Sodexo’s activity.

Materiality Matrix

The Materiality Matrix was conducted in collaboration with an external partner. The assessment was based on:

  • a desk-research of recent publications, reports, and statements from a mix of external stakeholders, such as investors, analysts, civil society organizations, governments, trade associations, and peers;
  • qualitative and quantitative surveys;
  • interviews and workshops with representatives from the Strategy, Communication, Risk Management, Corporate Responsibility, Marketing, Digital and Innovation, Human Resources, Purchasing and Investor Relations teams.

All of the consultations contributed to the quantitative and qualitative assessment of the issues, identified by the Sodexo teams upstream. Twenty-eight issues have been clearly defined and prioritized according to the Sodexo impacts identified in the Corporate Responsibility Roadmap: Better Tomorrow 2025. The outcomes of this Stakeholder consultation reinforced Sodexo’s commitment to continue the deployment of its Corporate Responsibility roadmap: Better Tomorrow 2025.

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 2.5.4 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, identified in section 2.5.4 with the ☑ sign.

Limitations

Sodexo employs 423,467 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:

  • number of work-related accidents requiring absence:
    • excludes commuting accidents,
    • includes Sodexo workforce only,
    • excludes temporary labor, sub-contracted labor and other personnel that are not Sodexo employees,
    • may have insignificant differences created by the way that work-related illness is accounted for locally;
  • average number of days absence:
    • includes absences for work-related accidents and illness as well as personal accidents and illness,
    • may have insignificant differences created by the way the number of days of absence is accounted for locally; as some include weekends and others only working days, the minimum number of days of absence from which the absence is recorded;
  • number of training hours:
    • the number of training hours in the U.S. is based on an estimation. The estimation is an extrapolation of actual data covering 35% of the population,
    • in France, the number of training hours is only captured for active employees as of August 31, 2024, and doesn’t capture all training hours followed by employees having left the Company during Fiscal year.
  • the number of employees with disabilities: the data collection methodology may vary from one country to another depending on local legislation.

Sodexo’s mission is to improve quality of life for its employees and all who it serves. Sodexo’s services are, in the majority of cases, provided by its own employees on a significant number of client sites where the Company operates throughout the world. The following information is therefore not applicable or not material for Sodexo:

  • preventive or corrective actions with regard to discharges into the atmosphere, water and soil with a significant negative impact on the surrounding environment;
  • consideration of noise and any other activity-specific pollution;
  • land usage;
  • importance of sub-contracting.