Impacts, Risks and Opportunities (IROs)
Material IROs identified through the double materiality assessment associated with environmental sustainability matters are detailed in the table below.
Own operations
Downstream value chain| IRO type & horizon | IRO Name | Value chain | |||
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| E1 Climate change | |||||
| Resilience and adaptation to climate change | |||||
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Direct threat to the physical and psychosocial integrity of Sodexo employees in the event of a natural disaster caused by failure to adapt to climate change. |  |
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Direct threat to the physical and psychosocial integrity of Sodexo's value chain workers in the event of a natural disaster caused by failure to adapt to climate change. |  |
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Volatility of raw material prices due to lower crop yields caused by climate change or geopolitical instability. | |
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Transition risk due to capital expenditure into infrastructures adaptation to climate change and higher operating costs for owned & leased assets. | |
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Business disruption and revenue loss due to significant destruction of assets or goods, caused by natural disasters or extreme weather events. | |
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Reputational and legal risk in the event of failure of equipment and services provided by Sodexo due to inappropriate adaptation to climate change. | |
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| GHG emissions and energy | |||||
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Local green energy from biomass and solar energy production along the value chain. | |
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Contribution to climate change due to GHG emissions from the value chain. | |
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Reputational and legal risk in case of Sodexo’s non-compliance with increasing local regulation and/or failure to achieve its GHG emissions related targets. | |
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Risk of market loss if failing to meet growing client and consumer expectations to deliver low-carbon services and in case of partnerships with high-emitting companies. | |
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| E2 Pollution | |||||
| Air pollution | |||||
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Adverse effects on human health and/or the environment due to the release of pollutants into the air from the upstream and downstream value chain. |
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| Soil pollution | |||||
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Chemical discharges, fertilizer and pesticides into soil leading to adverse effects on human health and/or the environment in the upstream value chain. |
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| Water pollution | |||||
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Chemical discharges, fertilizer and pesticides in the water leading to adverse effects on human health and/ or the environment in the upstream value chain. |
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| E3 Water and marine resources | |||||
| Marine resources | |||||
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Impoverishment of certain species and deterioration of marine ecosystems encouraged by a wide supply of pescatarian products or potential protected species. |
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| Water consumption | |||||
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Contribution to natural water resources depletion and aggravation of local hydric stress due to water consumption or withdrawal within Sodexo food services. |
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| E4 Biodiversity and ecosystems | |||||
| Biodiversity and natural ecosystems | |||||
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Biodiversity loss and degradation of ecosystems due to deforestation, species habitat destruction, resource and soil depletion, land-use change, fertility and permeability or other inappropriate practices in the upstream value chain. | |
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Reputational and legal risk in case of non-compliance with local regulations in favor of the protection of biodiversity, nature and landscapes. | |
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| E5 Resource use and circular economy | |||||
| Sourcing of materials | |||||
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Contribution to scarcity of natural, agricultural commodities resources due to raw material extraction and energy used in the upstream value chain. | |
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| Food loss & waste | |||||
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Cost savings thanks to food waste prevention and reduction. | |
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Food loss in Sodexo's own operations (central kitchens, catering, events, etc.) due to overproduction, unsold/unconsumed, food waste or poor food production management contributing to natural resources depletion. | |
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Food loss in the downstream value chain due to consumption habits. | |
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Financial and food loss (cold chain breaks, product spoilage) for the various players in the supply chain. | |
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| Packaging and other waste | |||||
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Non-hazardous waste production and disposal leading to adverse impacts on the environment. | |
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