Universal Registration Document Fiscal 2025

2 Sustainability at Sodexo

2.2.2.1 Climate change (E1)

Impacts, Risks and Opportunities (IROs)
IRO type & horizon IRO Name Value chain Sodexo's answer to these matters
E1 Climate change
Resilience and adaptation to climate change

Negative impactMedium-term

IRO Name

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.

Own operations

Sodexo's answer to these matters

Sodexo faces both physical and transition risks linked to climate change, ranging from threats to the health, safety, and psychosocial well-being of employees and value chain workers during natural disasters, to the volatility of raw material prices caused by lower crop yields or geopolitical instability. To mitigate these impacts, Sodexo strengthens its health and safety governance, implements emergency preparedness in case of extreme weather events and business continuity plans, and supports employees and partners with appropriate resources. On the operational side, Sodexo invests in resilient infrastructure, renewable electricity, and energy-efficient technologies, balancing near-term capital expenditure with long-term cost savings and business resilience. By advancing responsible sourcing, supplier diversification, and regenerative agriculture practices, the Group reduces exposure to raw material price fluctuations while fostering more sustainable supply chains. Finally, through science-based targets, robust risk mapping, and CSRD-aligned reporting, Sodexo ensures compliance with evolving regulations, limits reputational and legal risks, and reinforces trust among clients, consumers, and stakeholders.

Negative impactMedium-term

IRO Name

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.

Upstream value chainDownstream value chain

RiskMedium-term

IRO Name

Volatility of raw material prices due to lower crop yields caused by climate change or geopolitical instability.

Upstream value chain

RiskMedium-term

IRO Name

Transition risk due to capital expenditure into infrastructures adaptation to climate change and higher operating costs for owned & leased assets.

Own operations

RiskMedium-term

IRO Name

Business disruption and revenue loss due to significant destruction of assets or goods, caused by natural disasters or extreme weather events.

Upstream value chainOwn operationsDownstream value chain

RiskMedium-term

IRO Name

Reputational and legal risk in the event of failure of equipment and services provided by Sodexo due to inappropriate adaptation to climate change.

Own operations

GHG emissions and energy

Positive impactMedium-term

IRO Name

Local green energy from biomass and solar energy production along the value chain.

Own operations

Sodexo's answer to these matters

Sodexo is promoting renewable energy use across its own operations, with a commitment to 100% renewable electricity by 2025 and local solar and biomass initiatives, which was reached as of August 2025. To reduce value chain emissions, which represent over 90% of its carbon footprint, Sodexo works with suppliers on science-based targets, responsible sourcing, and low-carbon meals. Robust governance and SBTi-validated targets ensure compliance with evolving regulations and mitigate reputational or legal risks. Finally, by embedding sustainability KPIs into client contracts and rolling out carbon labeling, Sodexo responds to growing client and consumer expectations for low-carbon services.

Negative impactShort-term

IRO Name

Contribution to climate change due to GHG emissions from the value chain.

Upstream value chainDownstream value chain

RiskMedium-term

IRO Name

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.

Own operations

RiskMedium-term

IRO Name

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.

Downstream value chain