Compass Group (CPG) ESG Update summary

Strategic procurement model and global expansion

• Procurement is a core competitive advantage, with over 1,000 global employees and significant investment in systems and talent.

• Foodbuy US is the largest food service GPO in North America, managing $32 billion in annual procurement, with 60% for third-party clients.

• The Foodbuy model is being replicated in the UK, Canada, Australia, and select European markets, with tailored approaches and a maturity roadmap for each region.

• Recent acquisitions in the UK and Europe have accelerated scale, technology, and talent, supporting growth in third-party volumes.

• Growth priorities include talent development, investment in data and systems, best practice sharing, and enhanced collaboration.

Operational excellence and compliance

• Compliance, defined as spend on preferred suppliers, exceeds 90% for core business in the US and UK, driving commercial value.

• Tools like Empower help members identify savings and optimize purchasing, supporting a continuum of increasing compliance.

• Collaboration with chefs ensures product quality and menu innovation, with best practices like the Rule of Five minimizing waste.

• Distribution flexibility and strong supplier relationships provide resilience and efficiency, especially during disruptions.

• Performance culture and cross-functional forums ensure alignment and disciplined procurement processes.

Technology, data, and sustainability

• Significant investments in digital systems and AI are enhancing procurement management, analytics, and supplier negotiations.

• Data insights inform supplier relationships, category growth, and environmental impact, supporting sustainability goals.

• In 2023, over $1.7 billion was spent with diverse local and social enterprises, with frameworks to support minority-owned suppliers.

• Foodbuy's data-driven approach is being expanded in Europe, with a focus on best practice sharing and system upgrades.

• Sustainability and social value are integral, with long-term supplier partnerships and support for small and minority businesses.