Universal Registration Document Fiscal 2025

2 Sustainability at Sodexo

Fair relationship with suppliers [G1-2]

Sodexo integrates social, environmental and ethical criteria as fundamental components of its supplier and partner selection process. We require all potential suppliers to comply with our Supplier Code of Conduct (2024), which sets strict expectations on labor rights, human rights, environmental protection, and ethical business practices.

In 2024, we strengthened our sustainability risk assessment process across 56 purchasing categories. Conducted in collaboration with an external expert, this assessment enabled us to identify and prioritize risks such as forced labor, child labor, and unsafe working conditions, environmental pollution, and carbon emissions based on geography, supply chain complexity, and product or service type.

Our methodology aligns with international standards such as ISO 20400 and leverages global indices like the Global Slavery Index, the Global Rights Index, the Fragile States Index, the Environmental Index (EPI), the Corruption Index or the Animal Protection Index. It provides a granular, data-driven view of risks and informs targeted mitigation strategies. We have developed risk profiles and action plans for our top purchasing categories.

In 2025, we enhanced this process by developing supporting tools to track the effectiveness of mitigation actions and continuously refine our risk exposure from gross to net levels. In risk assessment, moving from gross risk to net risk means evaluating how effective the mitigation actions are in reducing the initial level of risk:

  • Gross risk refers to the level of risk identified before any controls or mitigation measures are applied. It represents the inherent risk in a process or activity if no actions are taken to reduce it.
  • Net risk is the residual risk after implementing mitigation actions and controls. It reflects the actual risk exposure once preventive or corrective measures have been applied.

By establishing tools to track the effectiveness of these mitigation actions, we can continuously assess how much risk has been reduced and update our understanding of the company’s actual risk exposure — moving from the theoretical gross risk to a more realistic net risk level. This allows for more precise risk management, enabling Sodexo to prioritize resources and efforts where they are most needed.

During the supplier onboarding and evaluation phases, we assess candidates based on their compliance with - and potentially differentiating performance on - these criteria alongside quality, competitiveness, innovation, and service standards. This includes reviewing suppliers’ environmental policies, carbon footprint, resource management practices, and social responsibility commitments.

We are also in the process of deploying a structured supplier sustainability assessment program based on the independent EcoVadis platform. Global suppliers are invited to complete the EcoVadis questionnaire, which provides a standardized, internationally benchmarked evaluation. We are extending the program to our main market such as United States, The United Kingdom, and France.

By prioritizing suppliers who demonstrate strong sustainability performance, such as those using renewable energy, reducing waste, or fostering fair and inclusive labor practices, Sodexo ensures its supply chain aligns with its broader sustainability goals. This approach enables us to mitigate social and environmental risks and drive positive impact throughout our procurement activities.

We are committed to fostering a collaborative and long-term relationship with our suppliers, grounded in mutual learning and continuous improvement. With humility and determination, we share best practices, encourage open dialogue, and support our partners in strengthening both their environmental and social performance over time. This proactive and transparent approach reflects Sodexo’s long-term commitment to building resilient, ethical, and inclusive supply chains with our suppliers.