Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Environmental Responsibility

Environmental Achievements

• Decreased annual energy consumption in stores with implemented energy management system
• Replacing light fixtures with more energy-efficient technology
• Reducing electricity used for exterior signs with new LED fixtures
• Incorporated LEED guidelines in corporate office and warehouse design (geothermal heating/cooling)

Social Achievements

• Developed strong vendor relationships with compliance requirements (child labor, forced labor, etc.)
• Implemented standardized recall procedures complying with Health Canada and CFIA
• Commitment to safe and stimulating work environment, competitive compensation, and advancement opportunities
• Equity and equality in employment practices
• Adoption of a Code of Conduct and Ethics
• Contribution to community economic development through store expansion and job creation

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Energy consumption in stores and transportation
• Waste generation from product and shipping packaging

Mitigation Strategies

• Energy management system for HVAC and lighting control
• Energy-efficient lighting upgrades
• LED exterior sign lighting
• Right-sizing product and shipping packaging
• Use of more environmentally-friendly materials
• Collaboration with service providers for waste reduction and recycling

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor compliance requirements (including child labor, forced labor, etc.)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Randstad Award (2012)

Environmental Metrics

ESG Focus Areas

• Talent attraction, development and retention
• Health and safety
• Fair labour practices
• Diversity and inclusion
• Product safety and quality
• Product packaging and lifecycle management
• Responsible sourcing
• Fair labour practices
• Human rights
• Climate change
• Energy management
• Recycling and waste management
• Data security and customer privacy

Environmental Achievements

• Retail footprint increased by over 11% from 2018 to 2020, while total GHG emissions increased by approximately 10%
• Nearly 45% of the chain is equipped with interior LED lighting.
• All logistics facilities equipped with LED lighting since 2020.

Social Achievements

• Significant enhancements to talent development and retention programs resulting in lower turnover and an increase in internal promotions.
• Over 3,000 store employees were promoted to positions of greater responsibility in 2020.
• Revamped employee assistance program (EAP) was implemented.

Governance Achievements

• Restructuring of product quality and compliance program with commitments to set the bar higher year after year.
• Full implementation of a three-pronged approach to vendor compliance, increasing the ability to safeguard human rights.
• Enhanced disclosures in alignment with recognized ESG standards and stakeholder expectations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 impacted progress on some fronts in 2020.
• Maintaining brand image and reputation.
• Competition in the retail industry.
• Attracting and retaining quality employees.
• Disruption in information technology systems.
• Inability to protect systems against cyber-attacks.
• Adverse weather, pandemic or epidemic outbreaks, earthquakes and other natural disasters, climate change, geopolitical events and political unrest in foreign countries, product liability claims and product recalls, litigation, regulatory and environmental compliance, and shareholder activism.

Mitigation Strategies

• Adapted efficiently to a new reality and emerged stronger from the COVID-19 pandemic.
• Implemented COVID-19 health and safety protocols.
• Robust information technology department and dedicated cybersecurity team.
• Annual investment and focus on systems integrity.

Supply Chain Management

Supplier Audits: 152 audit reports produced by third-party auditors were received and reviewed by Dollarama in 2019 and 2020.

Responsible Procurement

• Vendor Code of Conduct
• Vendor Compliance Survey
• Social Audit Program

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather

Transition Risks

• Future regulatory changes

Opportunities

• Reducing energy consumption in our expanding store network

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Named to The Globe and Mail’s annual Women Lead Here benchmark of executive gender diversity in corporate Canada (2021)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Talent
• Diversity
• Sourcing
• Packaging
• Data Privacy

Environmental Achievements

• 59% of store network with LED lighting in 2021 (up from 44% in 2020)
• 40% of stores with upgraded energy management systems in 2021 (up from 19% in 2020)
• 83% of purchased electricity in 2021 was from renewable or non-GHG emitting sources
• Over 500 million plastic bags removed from circulation since 2017
• 77% of waste recovered from stores in 2021 was diverted from landfill

Social Achievements

• ~4,000 store employees promoted to new positions in 2021 (increase from ~3,000 in 2020)
• 100% of new District Manager positions filled via internal promotions in 2021
• New commitment to maintain at least 40% female representation at the management level

Governance Achievements

• Zero material data breaches to date
• Oversight of climate-related risks and opportunities formally delegated to the Audit Committee

Climate Goals & Targets

Environmental Challenges

• Logistics operations at risk of disruptions due to adverse weather effects
• Increased operating costs within facilities due to potential increase in electricity rates and/or frequency/severity of adverse weather events
• Rising fuel costs and higher costs of carbon impacting logistics operations
• Higher operating costs borne by vendors potentially resulting in higher cost of goods
• Potential impact on 2030 emissions intensity reduction target due to factors mentioned above and potential failure of provincial plans to decarbonize electricity grids

Mitigation Strategies

• Implementation of mitigation measures or contingency plans to address weather-related disruptions
• Ongoing risk assessment exercise
• Development of climate strategy and roadmap continues to evolve

Supply Chain Management

Supplier Audits: 204 valid and satisfactory third-party audit reports at the end of 2021

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather effects causing delays or interruptions in delivery of goods
• Increased operating costs due to increased frequency or severity of adverse weather events

Transition Risks

• Rising fuel costs
• Higher costs of carbon
• Higher operating costs borne by vendors
• Potential failure of provincial plans to decarbonize electricity grids

Reporting Standards

Frameworks Used: TCFD, SASB

Awards & Recognition

• Named to The Globe and Mail’s annual Women Lead Here benchmark for three consecutive years

Environmental Metrics

ESG Focus Areas

• Product accessibility
• Product safety and quality
• Environmental and social components in products
• Packaging
• Climate strategy
• Energy management
• Waste management
• Transportation
• Talent attraction, development and retention
• Fair labour practices and equity
• Workforce health and safety
• Diversity and inclusion
• Supplier engagement
• Human rights and the environment
• Supply chain accountability
• Strong governance framework
• Ethical behaviour and fair business practices
• Data privacy and information security

Environmental Achievements

• Reduction in Scope 1-2 GHG emissions intensity to 4.9 kg CO2e/ft2 compared to 7.7 from FY20 baseline
• 10% reduction in absolute Scope 1-2 GHG emissions compared to FY22
• Elimination of single-use plastic bags six months ahead of regulatory deadline

Social Achievements

• 4,800+ store employees promoted to new positions (increase vs. ~4,000 in FY22)
• 90%+ enrollment in social audit program by Tier 1 vendors
• MSCI ESG Rating improved to A from BBB

Governance Achievements

• Creation of dedicated ESG function and cross-functional ESG Steering Committee
• Conversion of credit facilities to sustainability-linked loan structure
• Limited assurance performed on Scope 1-2 GHG emissions intensity and gender diversity in management

Climate Goals & Targets

Environmental Challenges

• Data quality challenges for Scope 3 emissions tracking
• Supply chain disruptions
• Maintaining high internal promotion rates in a competitive job market
• Balancing business growth with absolute GHG emissions reduction

Mitigation Strategies

• Strengthened data management and methodology for environmental data
• Diversified sourcing strategies and incident response plans
• Professional development initiatives and career advancement opportunities
• Focus on GHG emissions intensity reduction rather than absolute reduction

Supply Chain Management

Supplier Audits: 291 satisfactory social audits completed by end of FY23 (90% of targeted vendors)

Responsible Procurement

• Vendor Code of Conduct
• Social Audit Program
• Vendor Compliance Survey

Climate-Related Risks & Opportunities

Physical Risks

• Flooding of stores
• Weather events disrupting transportation
• Raw material shortages

Transition Risks

• Evolving environmental regulations

Opportunities

• Increased resource and energy efficiency
• Sustainability-linked loan reducing borrowing costs

Reporting Standards

Frameworks Used: SASB, TCFD

Third-party Assurance: External third-party limited assurance on Scope 1-2 GHG emissions intensity and gender diversity in management

Sustainable Products & Innovation

• Products made of wood, bamboo, sugar cane, or rice fiber; products with recycled or compostable content