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168<br />
<strong>06</strong><br />
Consolidated information<br />
Supplemental information<br />
The diversity of backgrounds, cultures and skills<br />
among its people represents both a challenge<br />
and a major opportunity. Sodexo is committed to<br />
capitalizing on this diversity to gain a competitive<br />
edge and become a genuine worldwide player, so<br />
that its people – at every level – reflect the diversity<br />
of the Group’s clients and customers.<br />
As far as it is aware Sodexo is not exposed to any<br />
specific labor-related risk other than those arising<br />
in the ordinary course of business for a worldwide<br />
group of its size.<br />
5.3 Environmental risk<br />
Sodexo is aware of the potential environmental<br />
impact of its activities, even though it operates<br />
on its clients’ sites. Rather than underestimate its<br />
importance, the Group makes every effort to manage<br />
and limit environmental risk.<br />
The environmental impact of its activities arises<br />
mainly from:<br />
• consumption of water and energy in foodservices<br />
facilities, food preparation and cleaning;<br />
• production of waste from food preparation and<br />
cleaning (packaging, organic matter, waste fats<br />
and oils, and waste water from cleaning).<br />
As part of its role as a corporate citizen, in 20<strong>09</strong><br />
Sodexo launched The Better Tomorrow Plan, a<br />
continuous improvement program. This plan<br />
identifies <strong>14</strong> commitments pertaining to nutrition,<br />
health and wellness, local communities, and the<br />
environment.<br />
5.4 Regulatory risk<br />
The nature of Sodexo’s business and its worldwide<br />
presence mean that it is subject to a wide variety<br />
of laws and regulations including labor law,<br />
antitrust law, corporate law, and health, safety and<br />
environmental law.<br />
Sodexo has the legal structures in place at the<br />
appropriate levels to ensure compliance with these<br />
laws and regulations.<br />
Sodexo Registration Document Fiscal 2<strong>01</strong>1<br />
P ◀ CONTENTS ▶<br />
Changes in laws or regulations could have a direct<br />
impact on the business and/or the services provided.<br />
For example, the Motivation Solutions activity is<br />
subject to national tax and labor law provisions.<br />
Significant changes in these provisions as they<br />
relate to the issuance of service vouchers could open<br />
up opportunities for new contracts or jeopardize<br />
existing ones.<br />
5.5 Liquidity, interest rate, foreign<br />
exchange and counter-party risk<br />
Sodexo has access to a wide variety of bank funding<br />
sources in addition to raising funds directly from<br />
investors on the commercial paper and bond<br />
markets. Because it has operations in 80 countries, all<br />
components of the financial statements are inevitably<br />
influenced by foreign currency translation effects,<br />
and in particular by fluctuations in the U.S. dollar, the<br />
UK pound sterling, the Swedish crown, the Brazilian<br />
real, and the Venezuelan bolivar. However, exchange<br />
rate fluctuations do not generate operational risk,<br />
because each subsidiary bills its revenues and incurs<br />
its expenses in the same currency.<br />
Sodexo uses derivative instruments to manage its<br />
exposure to interest rate and foreign exchange risk.<br />
Additional information relating to these risks is<br />
found in notes 5.1, 5.2 and 5.3 to the consolidated<br />
financial statements.<br />
5.6 Economic downturn risk<br />
Adverse economic conditions could affect the<br />
Group’s operations and earnings.<br />
The difficult economic climate and possible outbreaks<br />
of social instability could depress demand for the<br />
services Sodexo offers its clients, particularly in the<br />
Corporate segment, with negative consequences for<br />
earnings.<br />
In addition, public sector clients could be confronted<br />
with budget constraints. Nonetheless, Sodexo’s<br />
clients are predominantly (around two-thirds of<br />
annual revenues) in less cyclical sectors such as<br />
Education, Healthcare, Justice and Defense.