2.2.3.2 Workers in the value chain (S2)
Impacts, Risks and Opportunities (IROs)
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| Value chain |
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Positive impact
Opportunity
Own operations| IRO type & horizon | IRO Name | Value chain | Sodexo's answer to these matters |
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| S2 Workers in the value chain | |||
| Respect of human and workers' rights in the value chain | |||
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IRO Name Increased financial inequality among Sodexo' value chain workers due to unfair pay differentials. |
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Sodexo's answer to these matters Sodexo encourages and supports its suppliers and subcontractors in upholding fair labor practices and preventing financial inequality. Through its Supplier Code of Conduct, Sodexo promotes respect for human rights and the prevention of forced labor, child labor, and other violations across the value chain. By fostering responsible practices among partners, Sodexo protects its people, strengthens stakeholder trust, and safeguards the integrity of its brand. |
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IRO Name Potential improper practices that could violate human rights within the value chain, especially regarding forced labor or child labor. |
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IRO Name Potential damage to Sodexo's reputation and operations, due to public alerts or incidents related to violations of labor rights and human rights obligations in the supply chain, whether by a supplier or a key partner. |
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| Working conditions, equal treatment and health & safety for value chain workers | |||
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IRO Name Exposure of workers in the value chain to high security risks in different countries or regions (geopolitical risks, political tensions, arrests, acts of terrorism, epidemics, protests, armed conflicts). |
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Sodexo's answer to these matters Sodexo encourages and supports its suppliers and subcontractors in managing security risks for workers across different countries and regions. By promoting responsible working conditions and adherence to local regulations, Sodexo helps mitigate reputational and legal risks, while fostering resilience across its value chain. |
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IRO Name Reputational and legal risk induced by poor working conditions across the value chain (duty of care, EGalim law). |
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Governance, policies, actions [S2-1, S2-2, S2-3, S2-4]
Sodexo recognizes that over 90% of its environmental and social footprint lies within its supply chain. Ensuring respect for human rights and promoting fair working conditions across the value chain are therefore at the core of our sustainability and risk management strategy.
The cornerstone of this approach is the Sodexo Supplier Code of Conduct, first published in 2008 and regularly updated to reflect evolving international standards and stakeholder expectations. The latest version, updated in 2024, is aligned with the United Nations Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises. To ensure accessibility, the code is available in over 20 languages and distributed to all suppliers worldwide. It is embedded in Sodexo’s supplier onboarding and contracting processes, making adherence a mandatory requirement for all contracted suppliers.
The Supplier Code of Conduct sets out clear expectations regarding:
- prohibition of forced labor, child labor, and discrimination,
- fair wages, working hours, and freedom of association,
- safe and healthy working conditions,
- respect for environmental regulations, and
- prohibition of corruption and unethical practices.
ACTIONS
To ensure these commitments are effective, Sodexo implements a multi-layered due diligence process:
- Supplier contracts: signing the Supplier Code of Conduct is mandatory for all suppliers.
- Capacity building: a Supplier Guide is provided to clarify expectations and support implementation.
- Monitoring & assessment: compliance is verified through self-assessment questionnaires, EcoVadis evaluations in key markets, and on-site audits in higher-risk categories.
- Targeted audits: in the textile supply chain, for example, Sodexo conducts third-party social audits across 14 production countries, focusing on worker interviews, corrective actions, and continuous improvement.
- Risk-based approach: Sodexo applies a comprehensive ESG risk assessment methodology covering 56 purchasing categories to identify priority risks (human rights, health & safety, ethics, environment) and define proportionate mitigation measures.
GOVERNANCE
The Group Supply Management team oversees the deployment of the Supplier Code of Conduct, working in close coordination with Ethics & Compliance, Sustainability, and regional procurement teams. Country-level procurement ensures local adaptation while maintaining consistency with Group standards. Oversight is reinforced through Group reporting and internal control processes, with escalations to the SLT where needed.