Universal Registration Document Fiscal 2025

Our water strategy is built on two main pillars:

Responsible sourcing:

Sodexo aims to reduce the water impact embedded in its food supply by engaging with suppliers. As such:

(1) We collaborate with NGOs to promote sustainable agricultural practices that conserve water and protect ecosystems. Here are some examples of the projects we conducted:

• Sodexo Live! partnered with Full Circle Farms, a regenerative farm in West Sussex. Sodexo Live! purchased 1.5 acres of land at Full Circle Farms to grow organic vegetables, specifically for Sodexo Live! chefs to use in menus.
• In 2021, Good Eating Company began a pilot to support regional Black, Indigenous, People of Color, and new Canadians growers using regenerative agricultural practices, in partnership with Kitchen Table Advisors (KTA), a regional non-profit that provides technical assistance to farmers. Six Restora California grantee farms were enrolled through the REGEN1 portal, each implementing at least five regenerative practices. The program has since grown to 75 farms.
• Sodexo is currently working with WWF to refine the water-related criteria within its Regenerative Agriculture projects.

(2) We explore collaboration with stakeholders at the watershed level, prioritizing the food procurements which are the most likely to face high or very high water risks. For instance:

• Together with WWF and our U.S. supply team, we carried out an eight-month study to reduce the water impact of a high-impact commodity. Following SBTN steps 1 and 2, we identified the most water-intensive commodities and, with two key suppliers, created a methodology to contextualize and assess water risks.
• We are also considering participating in watershed regenerative projects related to the production of our key impacting agricultural commodities.

Finally, it is essential to recognize the interconnection between water and other sustainability issues, carbon emissions reduction and forests preservation are also critical to protecting water resources:

• Sodexo’s shift towards more plant-based and low-carbon menus plays a crucial role in lowering the water intensity of our food supply, given the high water demand associated with meat production—particularly beef.
• Our commitment to a global deforestation-free and conversion-free supply chain by 2030 contributes significantly to preserving water cycles. Forests provide approximately 75% of the world’s accessible freshwater. By safeguarding these ecosystems, we help maintain natural water filtration and storage functions that are vital for sustainable water availability, thereby reducing water-related risks across our procurement network.

On-site resource efficiency:

Operationally, Sodexo’s water withdrawals and discharges primarily rely on municipal systems, except in rare cases, such as remote locations where alternative solutions are required. Our services at client sites generally do not require specific water treatment; however, in central production units, treatment is often necessary to prevent pollution, ensure regulatory compliance, and, enhance sustainability through water reuse. While no group-wide target has been set, several group and local initiatives are already in place:

• At sites we own (mainly central production units), we focus our effort on water-efficient materials and processes. In the United Kingdom, for instance, automatic water meters have been installed at main office buildings to better monitor and measure consumption.
• At client sites:
  • We promote water-efficient practices through our Site Engagement Assessment (SEA) tool library, which provides site managers and frontline teams with key best practices and guidance for collaboration with clients. This includes installing water-efficient equipment or advising it to our clients.
  • Additional best practices may also be introduced at the country level. For example, in France, the "SoEco" platform clarifies water-related regulations and provides further tips and communication materials to help reduce water consumption.
  • In Fiscal 2024, we piloted a SEA water scarcity module. It is designed to help sites become aware of their risks and act reduce their water impacts. It has been tested so far on 12 sites, in countries where water scarcity has the greatest impact (USA, Chile and India). Further testing are planned in Fiscal 2026.

Another key element is our global commitment to reduce food waste by 50% by 2025. Food waste accounts for roughly 24% of the water used in global agriculture, reducing food waste onsite has a significant indirect effect on lowering our water footprint.

METRICS [E3-4]