Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and wellbeing
• Environmental game changers
• Better for the world
• Safety
• People

Environmental Achievements

• Global Lost Time Incident Frequency Rate decreased by 38% since 2015
• Global Food Safety Incident Rate decreased by 35% since 2015
• Greenhouse gas intensity ratio reduced from 6.3 tCO2e/£M in 2018 to 9.1 tCO2e/£M in 2019 (Note: methodology changed, not directly comparable)

Social Achievements

• Launched global unit manager development program, Leadership in Action, with ~2000 participants by year-end
• Launched Compass Commitments (Respect, Growth, Teamwork)
• Global engagement index score of 4.1
• 84% of people agreed that the Company embraces diversity and inclusion
• Increased female representation on the Compass Group Board to 36% and 38% on the Executive Committee

Governance Achievements

• Undertook a governance review to align with the 2018 UK Corporate Governance Code
• Refreshed the schedule of matters reserved for the Board and terms of reference of principal committees
• Appointed a designated NED for workforce engagement

Climate Goals & Targets

Environmental Challenges

• Deteriorating business and consumer confidence in Europe impacting Business & Industry volumes, new business activity, and margin
• Cost inflation in some locations (labor, food)
• Macroeconomic challenges in Europe and some Rest of World markets

Mitigation Strategies

• Cost action program in Europe and some Rest of World markets (approx. £300 million charge, £90 million annual savings expected)
• Focus on efficiencies through MAP framework (pricing, purchasing, productivity)
• Portfolio management (disposals and acquisitions)

Supply Chain Management

Responsible Procurement

• Global Supply Chain Integrity Standards
• 100% cage-free eggs by 2025
• 100% certified sustainable palm oil by 2022
• 50% certified sustainable seafood by 2020
• Buy Local program in Canada

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used:

Certifications:

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 5
• Goal 8
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

Compass Group's sustainability strategy aligns with several UN SDGs, including those related to hunger, health, gender equality, decent work, responsible consumption and production, climate action, life below water, life on land, and partnerships for the goals.

Sustainable Products & Innovation

• Plant-based meals
• No sugar and no sweetener desserts

Awards & Recognition

• Footprint Media’s Health & Vitality Honours Award for Communication and Engagement
• Mines and Metals Association Mental Health Award 2019
• Best Waste Prevention Project Award (Food) at Footprint’s waste2zero Awards

Environmental Metrics

ESG Focus Areas

• food waste
• environmental impact (including climate change)
• responsible and resilient sourcing
• mental health
• health and wellbeing

Environmental Achievements

• Global Scope 1 and Scope 2 emissions decreased significantly compared to the financial year ended 30 September 2019 as a result of site closures due to the widespread lockdowns in many of the countries in which we operate.
• In the USA, won a SEAL Environmental Initiative Award for our Carbon Foodprint tool, which is used to reduce carbon emissions, energy, water and waste in the kitchen, while identifying opportunities for chefs to redesign their menus to help lower greenhouse gas emissions.

Social Achievements

• Compass has become a Living Wage Recognised Service Provider in the UK.
• 33% female representation on the Compass Group Board and 42% on the Executive Committee.
• Increased employee support in the areas of mental health, stress management and resilience in many of our markets.
• Launched Viva Bem initiative in Brazil, providing free emotional support to employees working on the frontlines of the pandemic, as well as their immediate families.
• Launched #gotyourback campaign in Australia to help people open up about their mental health.
• Donated over 1,100 tonnes of food, equivalent to more than two million meals, across some of our largest markets.

Governance Achievements

• Fully compliant with the UK Corporate Governance Code 2018.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted operations, resulting in site closures and reduced volumes.
• Cost inflation pressures.
• Political instability.
• Brexit's potential impact on food supply chain and labor force.
• Increased risk of fraud and corruption due to financial pressures and changes in working practices.
• Increased risk of malware and phishing attacks due to increased remote working.

Mitigation Strategies

• Implemented action plans to mitigate costs and preserve profitability and liquidity.
• Renegotiated contracts.
• Furloughed employees and rightsized costs.
• Increased liquidity through equity raise and additional credit facilities.
• Obtained waivers of financial covenants.
• Implemented robust incident management and business continuity plans.
• Accelerated adoption of digital solutions.
• Developed alternative sourcing strategies.
• Increased awareness campaigns to combat cyber threats.
• Implemented a new Ethics and Compliance e-learning platform.

Supply Chain Management

Supplier Audits: 35% of total food supplier base audited by NSF International

Responsible Procurement

• Global Supply Chain Integrity standards
• Global Allergen Management Plan
• SEDEX for supplier assessment
• 100% certified sustainable palm oil from physical sources by 2022
• 100% cage-free eggs by 2025
• 100% highest welfare standards for chicken in North America and Europe by 2024 and 2026 respectively

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 5
• Goal 8
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

The report details how Compass Group's initiatives contribute to these goals through various programs and strategies.

Awards & Recognition

• SEAL Environmental Initiative Award (USA)
• Fortune World’s Most Admired Companies 2020
• Fortune Global 500 2020
• Forbes Best Employers for Diversity 2020 (USA)
• Forbes Best Employers for New Grads 2020 (USA)
• Forbes America’s Best-In-State Employers 2020 – North Carolina (USA)
• Best Recruiters D-A-CH 2019/2020 Awards (Austria)
• Excellence in Company Programs & Performance at the Women in Resources National Awards 2020 (Australia)

Environmental Metrics

ESG Focus Areas

• Climate change
• Food waste
• Responsible sourcing
• Health and safety
• Wellbeing
• Diversity and inclusion
• Social mobility
• Human rights

Environmental Achievements

• Reduced global greenhouse gas intensity ratio to 7.2 tCO2e/£m from 7.5 tCO2e/£m in 2020. 13% reduction in absolute Scope 1 and 2 GHG emissions.
• Reduced global food safety incidents by 38% since 2016.
• Reduced global lost time incidents by 37% since 2016.
• Increased spending with local suppliers and social enterprises.

Social Achievements

• Launched 100 Compass Career Stories campaign.
• Launched UK & Ireland’s Compass Group Academy (opening in 2023).
• 46% female representation in management positions.
• Launched various wellbeing initiatives across the globe (e.g., You Matter in UK&I, We’ve Got Your Back in Australia, We’re By Your Side in Argentina, Just Now in Canada).
• Increased promotion rate amongst ethnically diverse groups by 3% in the US.
• Donated circa 1.3 million meals to local communities.

Governance Achievements

• Announced a global commitment to a 2050 Net Zero emissions economy, underpinned by approved 2030 Science Based Targets and a commitment to be carbon neutral worldwide across own operations by 2030.
• Improved client retention to 95.4%.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on revenues and operations.
• Labour shortages.
• Inflationary pressures on food and labour costs.
• Climate change impacts on supply chains.
• Maintaining high social and ethical standards.
• Cybersecurity threats.
• Competition from online food vendors.

Mitigation Strategies

• Cost control measures (managing food, in-unit, and above-unit costs).
• Resizing the business.
• Contract renegotiations.
• Increased labour flexibility.
• Digital innovation (apps, micro markets, grab-and-go).
• Enhanced health and safety protocols.
• Wellbeing initiatives for employees.
• Investment in technology and supply chain resilience.
• Sustainable sourcing strategies.
• Climate scenario analysis.
• Strengthening human rights due diligence.
• Cybersecurity investments and awareness campaigns.

Supply Chain Management

Responsible Procurement

• Code of Business Conduct
• Global Supply Chain Integrity Standards
• SEDEX tool
• Ethical Trading Initiative Base Code
• UN Global Compact principles
• International Labour Organization principles
• Sustainable sourcing of key commodities (palm oil, soy, fish, seafood).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Supply shortages due to water scarcity

Transition Risks

• Changes in technologies, markets, and regulation

Opportunities

• Expanding products and services aligned with demand for healthy, ethically sourced, and low-carbon food options.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 22000

Sustainable Products & Innovation

• Plant-based menu options
• Plantilicious range (Eurest UK&I)

Awards & Recognition

• Forbes 2021 Best Employer for Women and Diversity
• Forbes 2021 Best Employer for New Graduates (US)
• Top 100 graduate employer (UK)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Food Waste
• Sustainable Sourcing
• Biodiversity

Environmental Achievements

• 28% reduction in food waste across 2,650 sites in 28 countries.
• Compass Group France switched to 100% renewable energy in direct operations from January 2022.
• 73% of palm oil used is RSPO certified sustainable.

Social Achievements

• Launched mandatory Climate Net Zero Toolkit and Net Zero Hub in UK&I to improve operational, commercial and environmental performance.
• Launched a seed investment fund of £1 million to support carbon reduction and sustainable food production innovation in UK&I.
• Donated circa 1.3m meals to local communities.

Governance Achievements

• Board-level oversight of climate-related issues through the Corporate Responsibility (CR) Committee.
• Inclusion of an additional ESG measure relating to food waste in short-term incentive arrangements for Executive Directors.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical events (e.g., Ukraine/Russia war).
• Increased costs due to potential future carbon pricing.
• Supply chain shortages impacting access to certified sustainable palm oil.

Mitigation Strategies

• Flexible menu planning to select local, seasonal, and readily available ingredients.
• Cost indexation in contracts.
• Deployment of technology to measure and reduce food waste.
• Collaboration with suppliers for lower carbon options.
• Investment in low-carbon technologies.

Supply Chain Management

Supplier Audits: 100% of suppliers in UK&I

Responsible Procurement

• Global Supplier Assurance Standard program.
• Code of Business Conduct featuring climate change information.
• Incorporation of environmental, social, and ethical criteria into procurement decisions.

Climate-Related Risks & Opportunities

Physical Risks

• Crop stress, reduced yields, and catastrophic crop failure.
• Severe weather events impacting supply chain.

Transition Risks

• Increased costs due to carbon pricing.
• Increased competition from suppliers with better sustainability credentials.

Opportunities

• Increased demand for low-carbon food options.
• Opportunities for cost reduction through efficiency gains and waste reduction.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

Third-party Assurance: EcoAct

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy use, waste reduction, and emissions reduction targets.

Sustainable Products & Innovation

• Waste Not 2.0 (waste-tracking program)
• Carbon Foodprint (environmental dashboard)

Environmental Metrics

ESG Focus Areas

• Climate change
• Nature and biodiversity
• Waste reduction
• Inclusive talent attraction and retention
• Health, safety & wellbeing
• Workers’ rights
• Workers in our value chain
• Food transparency
• Sustainable and healthy diets
• Food safety
• Business ethics and integrity
• Bribery and corruption
• Cyber security, privacy and data security

Environmental Achievements

• 12% reduction in emissions (2022 vs 2019 baseline)
• Deployed food waste tracking technology in c.8,000 locations
• Waste Not 2.0 rolled out across 12 countries in nine languages
• 93% of sites have at least one ‘healthy meal’ choice
• 59% reduction in the carbon footprint of a bolognaise sauce per serving
• Canteen achieved carbon neutral certification for scopes 1 & 2 emissions in May 2023

Social Achievements

• 1.6 million meals donated to charity
• Launched the Global Culinary Forum
• Launched Mission to a Million social partner career hub
• Over 17,000 people completed DE&I training at Compass USA
• Launched the Compass Group Foundation

Governance Achievements

• Refreshed and relaunched Code of Business Conduct globally
• 4,130 issues reported to Speak Up, We’re Listening
• 54 cases substantiated (42%), resulting in process enhancements and training/coaching of our teams.
• Issued two sustainable bonds, raising proceeds of €500m and £250m

Climate Goals & Targets

Environmental Challenges

• Most of the Group’s GHG emissions are Scope 3 (originating in the supply chain)
• Supply chain disruptions due to avian flu and availability of supply for cage-free eggs
• Complexity of supply chains presents both challenges and opportunities
• Risks of human trafficking and forced, bonded and child labour

Mitigation Strategies

• Partnership with Planet FWD to improve methodology for measuring emissions and enhance the quality of supply chain data
• Working with suppliers to reduce emissions of products and services
• Focusing on food waste reduction, upskilling teams, reformulating menus, and working with suppliers to explore new sustainable business practices
• Strengthening risk-based approach to identifying and mitigating business integrity, human rights and environmental risks in supply chains
• Introducing a new Third-Party Integrity Due Diligence (TPIDD) process
• Expanding the use of Sedex
• Engaging with Earthworm Foundation to better understand social and environmental risks

Supply Chain Management

Supplier Audits: 1,247 supplier sites across 54 source countries audited using Sedex

Responsible Procurement

• Global Supplier Code of Conduct (SCOC)
• Sourcing local products
• Building an inclusive and diverse supplier base
• Supporting regenerative agriculture
• Demanding high animal welfare standards
• Protecting human rights
• Promoting ethical trade

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events that disrupt supply chains, reduce crop yields and damage community livelihoods

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Plant-based protein

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Third-party Assurance: KPMG LLP

UN Sustainable Development Goals

• Multiple UN SDGs

Sustainability strategy aligned with nine UN Sustainable Development Goals.

Sustainable Products & Innovation

• Plant-forward meals
• Coffeeloop coffee cups
• Reusable food boxes

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Food Waste
• Meals Donated

Environmental Achievements

• Reduced food waste by deploying food waste management systems in 9,947 sites.

Social Achievements

• Donated meals to local communities across the USA, UK&I, and Canada.

Governance Achievements

• Linked executive and senior management bonuses to food waste reduction targets (KPI focused on technology usage frequency).

Climate Goals & Targets

Environmental Challenges

• Data quality issues in the UAE market (excluded from reporting).
• Inconsistent methodologies across countries due to decentralized business model and data availability.
• Estimating Scope 3 emissions due to incomplete data from the supply chain (extrapolation based on Q4 data from the prior year and revenue as a scaling factor).

Mitigation Strategies

• Improved methodology for measuring emissions and enhancing the quality of supply chain data.
• Implemented a preparer and reviewer system in key markets to ensure data accuracy.
• Used estimation hierarchy for missing data on electricity or natural gas consumption (floor space as a normalization factor).
• Restated prior year data to reflect changes in reporting currency and removal of UAE market.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol

UN Sustainable Development Goals

• Goal 12

Food waste reduction target is aligned with Goal 12 of the UN SDGs.