Sodexo gives suppliers a net zero progress deadline

From January 2030, Sodexo UK & Ireland has stated it will only work with those suppliers demonstrating tangible net zero progress through published reporting.

The food services and facilities management business was one of the first organisations to have its UK and Ireland net zero 2040 target validated by the Science Based Targets initiative (SBTi). The organisation has been transparent about its net zero journey and progress, including the fact that just two per cent of its emissions sit in Scopes 1 and 2 – in the direct control of Sodexo UK & Ireland. Of the remaining 98 per cent of its total emissions, 34 per cent sit within its supply chain.

Sodexo UK & Ireland currently works with more than 4,000 supply partners, spending over £800 million every year. Supply partners were first made aware of the net zero supply chain engagement strategy and roadmap in March 2023, during Sodexo’s Partners with Purpose supplier conference. The organisation had, however, already begun working closely with a number of its suppliers to support them in formalising and documenting expectations to reduce carbon emissions.

Sodexo’s supplier mentoring programme is key to the success of this strategy. Around 70 per cent of Sodexo’s supply chain in the UK and Ireland is made up of Small and Medium Enterprises (SMEs) and Voluntary, Community and Social Enterprises (VCSEs), most of which cannot be expected to have teams dedicated to sustainability or afford consultancy support.

While Sodexo is being very clear with its supply partners about expectations, the business says it is also offering considerable support where these organisations are experiencing challenges, to help them complete the work needed to hit the milestones. For example, Sodexo UK & Ireland has introduced a two-year grace period for SMEs and VCSEs needing extra help to complete some of the requirements.

The first milestone is being implemented – Sodexo requires suppliers representing 75 per cent of its supply chain emissions to provide a detailed annual Carbon Reduction Plan identifying opportunities for collaboration and areas of improvement, while also reporting on scope 1 and 2 emissions at the minimum.

Further milestones that Sodexo has set on its roadmap include:

• From January 2024, the evaluation criteria of all tenders to include a minimum of 10 per cent Social Value Weighting.
• By September 2025, suppliers representing 75 per cent of Sodexo’s supply chain emissions will need to have set their net zero science-based targets validated by the Science-Based Targets initiative (SBTi).
• By September 2027, suppliers representing 90 per cent of Sodexo’s supply chain emissions will need to have set their own SBTi-validated net zero targets.
• By January 2030, Sodexo will only partner with suppliers who can demonstrate tangible progress through published reporting.

Aoife Wycherley, Head of Supply Chain, Sodexo, UK & Ireland said: “When we made our commitment to net zero by 2040, we committed to delivering on something that is truly meaningful and would have real impact. We have always known that this is not going to be easy, it will be hugely complex and will require an enormous collective effort throughout our entire value chain.

“We are so proud of the extensive and diverse supply chain we have built – we genuinely work with some incredible businesses, big and small. Their response to this challenge and to our offer of mentoring and other support has been positive and we feel confident that this roadmap will deliver ever more impactful reductions in emissions. Many of our suppliers have already told us they are passing this message down through their own supply chain, which over time has the potential to create a significant ripple effect.”