2024
Sodexo
Year
Sector
Alimentation
ACT assessment methodology
Agriculture & Agrifood
Performance Score
Highlights of the transition plan: Sodexo has set ambitious GHG emission reduction targets, covering both the short and long term. The company has committed to reducing its scope 1 and 2 emissions by 55% between 2017 and 2030. This target has been approved by SBTi and aligned with a 1.5°C trajectory. Sodexo plans to reduce its scope 3 FLAG emissions by 40% over the same time horizon. The Group also has a "Net Zero" target (-90% on scope 1, 2 and 3 emissions compared to 2017) by 2040. Sodexo has defined, with the WWF, the notion of a "low-carbon meal": a meal whose production generates 0.9 kg of CO2e or less. Sodexo's positioning on vegetarian meals, as well as the development of the notion of "low-carbon meals", demonstrate Sodexo's efforts in terms of customer engagement. Today, 25.6% of the meals offered by Sodexo are vegetarian. The Group has set itself a target of 33% vegetarian meals by 2025, and 70% of "low carbon meals" by 2030. This business model is mature and less emissive – it would allow Sodexo to reduce its dependence on the beef industry, which is very emissive. The WasteWatch program deployed by Sodexo reduces food waste, and therefore reduces the Group's carbon footprint while increasing its profitability. The subject of climate change is integrated into the Group's governance. Climate KPIs are integrated into the CEO's annual remuneration (progress towards the WasteWatch objective against food waste) but also into the long-term compensation (evolution of the intensity of the meals served by Sodexo).
Areas for improvement:
While AFOLU emissions are down compared to 2017, no data is available between 2019 and 2022, making it difficult to analyse the evolution of these emissions. Similarly, Sodexo has a target of a 50% reduction in food waste but does not communicate a reference year (seems to vary depending on the source), which makes it difficult to assess the evolution of food waste. In addition, the emission reductions associated with the development of low-carbon meals could be quantified. Regarding actions against deforestation: the policy seems to focus only on certain raw materials (oil, paper, beef and soya). Finally, regarding the commitment to the value chain, there is no obligation for suppliers to reduce emissions.
Areas for improvement:
While AFOLU emissions are down compared to 2017, no data is available between 2019 and 2022, making it difficult to analyse the evolution of these emissions. Similarly, Sodexo has a target of a 50% reduction in food waste but does not communicate a reference year (seems to vary depending on the source), which makes it difficult to assess the evolution of food waste. In addition, the emission reductions associated with the development of low-carbon meals could be quantified. Regarding actions against deforestation: the policy seems to focus only on certain raw materials (oil, paper, beef and soya). Finally, regarding the commitment to the value chain, there is no obligation for suppliers to reduce emissions.
Narrative Score
Business model and strategy: Sodexo has identified low-carbon business models (vegetarian and low-carbon meal offerings). In 2024, a quarter of Sodexo's meals are vegetarian and the company plans to grow this segment in the future. On the other hand, no data on the economic aspects (i.e. turnover) associated with these business models are publicly available, so it is difficult to position oneself on the resilience of these business models in a low-carbon world.
Credibility and consistency: The absence of a comprehensive transition plan does not allow us to attest to the credibility of Sodexo's climate strategy. In addition, the emission reductions made possible by the levers described are most of the time not quantified.
Data quality: As the evaluation was conducted using publicly available data, not all the data needed for a full ACT assessment could be collected. In particular, the analyst noted a lack of past data negatively impacting the company's performance score. In addition, the data available was sometimes incomplete (e.g., lack of KPIs associated with certain objectives).
Reputation: Sodexo has been the subject of some controversies, particularly regarding the traceability of beef. The company has generally responded and addressed controversies about it, but these have not always been addressed satisfactorily.
Risks: A risk analysis was conducted in 2022 but the results are only very superficial.
Credibility and consistency: The absence of a comprehensive transition plan does not allow us to attest to the credibility of Sodexo's climate strategy. In addition, the emission reductions made possible by the levers described are most of the time not quantified.
Data quality: As the evaluation was conducted using publicly available data, not all the data needed for a full ACT assessment could be collected. In particular, the analyst noted a lack of past data negatively impacting the company's performance score. In addition, the data available was sometimes incomplete (e.g., lack of KPIs associated with certain objectives).
Reputation: Sodexo has been the subject of some controversies, particularly regarding the traceability of beef. The company has generally responded and addressed controversies about it, but these have not always been addressed satisfactorily.
Risks: A risk analysis was conducted in 2022 but the results are only very superficial.
Trend score
Sodexo began its low-carbon transition by offering low-carbon alternatives and fighting against food waste. However, climate reporting could be improved and the lack of a transition plan on a global scale does not allow the climate strategy to be robust and credible – Sodexo will have to make significant efforts on these aspects to improve its ACT score.
Source
ACT Eval 2
Evaluator
Deloitte
GLOBAL SCORE
Performance score (/100)
54
Disclosure score (/100)
91
ℹ️
Narrative Score (A > E)
C
Trend Score (- = +)
=
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 82%
Material Investment Score : 38%
Intangible Investment Score : 50%
Sold Product Performance Score : 44%
Management Score : 55%
Supplier Engagement Score : 58%
Client Engagement Score : 76%
Policy Engagement Score : 6%
Business Model Score : 55%
Indicator weight by module