Sodexo threatens to cut £800m of contracts if net zero progress isn’t shown
Sodexo UK & Ireland has told its suppliers they must demonstrate tangible progress towards net zero by 2030 if they want to keep their contracts.
The food services and facilities management business currently works with more than 4,000 supply partners, spending over £800m every year.
Sodexo have announced they are requiring suppliers who are representing 75 per cent of its supply chain emissions to provide a detailed annual carbon reduction plan.
This plan will identify opportunities for collaboration and areas of improvement, while also reporting on scope 1 and 2 emissions at the minimum.
Scope 1 are direct emissions owned or controlled by a company. Scope 2 and 3 emissions are those indirect as a result of the activities of the company, but instead are released from sources not owned or controlled by it.
Sodexo became one of the first organisations globally to have both near and long-term science-based targets validated by the Science Based Targets initiative (SBTi).
Its near-term target is to reduce scope 1, 2 and 3 greenhouse gas emissions by 55 per cent by 2030.
Sodexo then aims to reach net zero by 2040, once it has achieved its long-term target of reducing scope 1, 2 and 3 greenhouse gases by 90 per cent.
The company is providing its supply partners with mentoring and considerable support to help them meet the net zero milestones.
A two-year grace period has been introduced for SMEs and VCSEs who need extra help to complete the requirements.
Initial research conducted by Sodexo in November 2021 revealed that, of 87 suppliers polled, 62 per cent had already made a commitment to achieve net zero by 2050 or sooner.
20 per cent did not have a carbon reduction plan in place.
The research also revealed that almost 65 per cent of suppliers were at that time only measuring scopes 1 and 2, with just 37 per cent measuring all three scopes.
Aoife Wycherley, head of supply chain, said: “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.
“If, however, with all this they are still unable or unwilling to make progress on net zero then we risk their lack of action impeding our ability to reach net zero. That in turn could impact our clients’ ability to achieve net zero.”