Universal Registration Document Fiscal 2025

For Fiscal 2025, Sodexo made significant progress on its indicators, with renewable electricity now representing 97% of the energy mix and food waste decreasing by 47.6%, reflecting the strengthening of its monitoring and management systems in this area. These results demonstrate both the effectiveness of the actions undertaken and the robustness of the methodology used to anticipate and mitigate the effects of climate change on the Group's business and its ecosystem.

The potential long-term impact of climate risks and opportunities on other components of business plans is also analyzed, in particular the potential impacts that disruptions to the Group’s supply chain caused by physical risks could have on the cost of sales and operating margin. These impacts are measured after taking into account the mitigation measures put in place to limit their impacts.

Sodexo's climate transition plan is fully integrated into the Group's strategic and operating model. Sodexo does not operate any industrial facilities or own any significant physical infrastructure, which means that its transition to a low-carbon business model does not require major investment. Rather, the Group's decarbonization approach focuses on transforming the fundamental nature of its value proposition, namely the way it sources, designs and supplies its food products and services, in order to significantly reduce its emissions without the need for significant investment.

The operating expenditure associated with Sodexo's climate transition plan is mainly allocated to developing and strengthening internal capacities and specialist expertise.

The potential impacts of climate change on the Group's financial statements are taken into account in the Group's strategic plan and risk management.

To date, the Group has not identified any significant climate change factors that would require it to adjust the value of its intangible assets with indefinite useful lives, or revise the useful lives of its intangible assets and property, plant and equipment.

2.3 Valuation bases

The consolidated financial statements are prepared using the historical cost convention, except for:

• identifiable assets acquired, and liabilities assumed, recognized as part of a business combination, measured at the acquisition date fair value (see note 3);
• certain financial assets and liabilities, measured at fair value (see note 12);
• defined benefit plan assets (see note 5.1);
• share-based payments, measured at fair value (see note 5.2);
• right-of-use assets and lease liabilities (see note 7).

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

In accordance with the hierarchy defined in IFRS 13 “Fair Value Measurement”, there are three levels of fair value:

• level 1: fair value measured using quoted prices (unadjusted) in active markets for identical assets or liabilities, used for the valuation of marketable securities;
• level 2: fair value measured by models that use observable inputs for the asset or liability concerned, either directly (i.e., prices) or indirectly (i.e., price-based data), used for the valuation of over-the-counter derivative instruments on the basis of models commonly used to value these instruments;
• level 3: fair value measured using valuation techniques based on unobservable inputs, used mainly for the valuation of client relationships acquired as part of a business combination and investments in non-consolidated companies.