Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Supply Chain Sustainability
• Product Safety
• Governance
• Community Investment
• Associate Well-being

Environmental Achievements

• Reduced Scope 1 and 2 emissions through various initiatives (LED lighting, energy management systems, HVAC upgrades, battery optimization).
• Developed a Dollar Tree In-Store Energy Efficiency Standard for all new stores starting in 2022.
• Achieved a goal of excluding 17 chemicals of high concern from active formulated private-brand products.
• Recycled 648,880 pounds of lead-acid batteries.

Social Achievements

• Decreased store manager turnover rate by 18% for Family Dollar and 8% for Dollar Tree.
• Launched the ‘Choose to Give’ workplace giving campaign, donating $2.7 million to charitable partners.
• Paid over $213 million in premium pay to frontline workers during the COVID-19 pandemic.
• Introduced new associate training programs on unconscious bias and creating a culture of inclusion.
• Expanded Family Dollar’s relief fund company-wide.

Governance Achievements

• Established explicit oversight responsibilities for ESG matters by the Board of Directors.
• Revised committee charters to enhance oversight of DEI, human capital, cybersecurity, and sustainability.
• Engaged with institutional holders of approximately 56% of outstanding shares on ESG matters.
• No computer data security breaches in the past three years.

Climate Goals & Targets

Environmental Challenges

• Higher cost of goods from suppliers due to carbon pricing.
• Potential impact of environmental regulations on operating and merchandising costs.
• Potential for supply chain disruptions due to extreme weather events.
• Negative reputation from stakeholders due to perceived inadequate action on climate change.
• COVID-19 pandemic impact on operations, growth, and supply chain.

Mitigation Strategies

• Investing in energy-efficient systems and transportation optimization.
• Engaging with suppliers on sustainability commitments.
• Developing climate goals to reduce emissions and increase renewable energy use.
• Enhanced sustainability reporting and transparency.
• Implementing safety measures and associate support programs during the COVID-19 pandemic.
• Expanding e-commerce presence to reduce disruptions.

Supply Chain Management

Supplier Audits: Social compliance audits of direct import vendor facilities.

Responsible Procurement

• Code of Vendor Conduct
• Sustainable sourcing commitment
• Palm Oil Policy
• Pollinator Protector Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Increased cost of goods due to carbon pricing and regulation.

Opportunities

• Increased demand for sustainable products.

Reporting Standards

Frameworks Used: GHG Protocol Corporate Accounting and Reporting Standard, GHG Protocol Corporate Value Chain Accounting Reporting Standard, TCFD (Task Force on Climate-related Financial Disclosures)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Community Investment
• Supply Chain Sustainability
• Governance

Environmental Achievements

• Decreased Scope 1 and Scope 2 emissions by approximately 11% per square foot across retail stores, distribution centers, and Store Support Center.
• Achieved approximately 16% reduction in upstream transportation and distribution associated emissions compared to 2020 baseline.
• 88% of retail stores and four distribution centers equipped with LED lighting.
• Installed 57 cool roofs at new retail stores in 2021.
• Landfill diversion of non-hazardous waste was approximately 64% due to recycling and composting efforts.

Social Achievements

• More than 48,000 associates were promoted into new positions within the organization.
• Launched "Be A Hero" Safety Campaign to improve warehouse safety.
• Formed a new employee resource group called "Pride" for LGBTQ+ associates.
• Partnered with ECRM and Range Me to host a Diverse Supplier Summit, receiving 7,700 product proposals from over 600 brands, 41% of which were women-owned and 40% minority-owned.
• Provided over $600,000 in support to 528 associates through the Associate Relief Fund.

Governance Achievements

• Formed a stand-alone Sustainability and Corporate Social Responsibility Committee.
• Reconstituted the Board of Directors with seven new directors, resulting in increased diversity and governance expertise.
• Implemented several key initiatives improving the data management and reporting of emissions.

Climate Goals & Targets

Environmental Challenges

• Higher cost of goods from suppliers due to carbon pricing.
• Increased severity and frequency of extreme weather events impacting operations and supply chain.
• Potential negative reputation from stakeholders due to perceived inadequate action on climate change.

Mitigation Strategies

• Investing in energy-efficient stores and facilities.
• Optimizing transportation and waste reduction initiatives.
• Engaging suppliers on their emission reduction initiatives.
• Implementing an In-Store Energy Efficiency Standard for new stores.
• Exploring renewable energy options (solar).

Supply Chain Management

Supplier Audits: Social compliance audits of overseas factories.

Responsible Procurement

• Code of Vendor Conduct
• Sustainable sourcing commitments (palm oil, pollinators)
• Chemical policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea level rise
• Rising temperatures

Transition Risks

• Increased cost of goods due to regulation or carbon pricing.

Opportunities

• Increased demand for sustainable products.

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, TCFD

Certifications: Energy Star (select stores)

Environmental Metrics

ESG Focus Areas

• People
• Climate

Environmental Achievements

• Recycled 370,679 tons of cardboard, paper, plastic, and pallets
• Opened 464 new stores meeting In-Store Energy Efficiency Standard
• Invested $45 million in energy efficiency upgrades (2022)
• 584 new stores equipped with LED lighting and EMS technology (2022)

Social Achievements

• Invested over $360 million in hourly wages for associates
• Promoted more than 63,000 associates
• Reduced store leadership turnover rate by almost 14%
• Implemented the first phase of DEI training across all departments in SSC (80%+ completion rate)

Governance Achievements

• Established a Sustainability and Corporate Social Responsibility Committee (SCSRC) in 2022
• Appointed a Chief Sustainability Officer (CSO) in October 2022
• Conducted a TCFD-aligned climate risk assessment

Climate Goals & Targets

Environmental Challenges

• Impact of extreme weather events on operations and supply chain
• Impact of rising average temperatures on associate productivity, health, safety, and wellbeing
• Climate-related regulations on products and operations
• Increase in cost of goods sold due to supplier cost of compliance with carbon taxes
• Cost of adoption of renewables/clean energy based on current footprint and growth strategy

Mitigation Strategies

• Disaster planning process for stores and critical infrastructure
• Precautions such as adding dry ice to freezers and coolers during power outages
• Associate Relief Fund to address hardship
• OSHA-compliant heat safety program at distribution centers
• Climate-controlled stores and (eventually) distribution centers
• Energy efficiency measures (cool roofs, low-emissivity windows)
• Monitoring changing environmental regulations
• Target of reducing scope 1 and 2 emissions by 25% per square foot by 2031
• LED lighting, HVAC upgrades, freezer/cooler upgrades, EMS technology
• Working with suppliers to understand and reduce scope 3 emissions
• Sustainable Sourcing Commitment (75% of supplier spend with companies having GHG reduction or renewable energy targets by 2031)
• Due diligence on cost-effective renewable energy procurement (PPAs, Green Tariffs, etc.)

Supply Chain Management

Responsible Procurement

• Safer Chemistry plan (eliminating chemicals of high concern)
• Sustainable Sourcing Commitment
• Palm Oil Policy
• Pollinator Protector Policy
• Cage-Free Egg Commitment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising average temperatures

Transition Risks

• Climate-related regulations
• Increased cost of goods sold due to supplier compliance with carbon taxes
• Cost of renewable energy adoption

Opportunities

• Waste reduction
• Improved energy efficiency
• Customer preference for sustainable products

Reporting Standards

Frameworks Used: SASB, TCFD, CDP, WRI GHG Protocol

Awards & Recognition

• Newsweek Great Workplace for LGBTQ+ associates (2023)

Environmental Metrics

ESG Focus Areas

• Associate well-being, compensation and engagement
• Safe and healthy operations
• Energy management
• Strategic Diversity, equity and inclusion
• Climate risk and resilience

Environmental Achievements

• Developed first carbon reduction plan with Science Based Targets aligned with a commitment to net zero by 2050
• Reduced total generated waste by 6%
• Increased recycled waste by 11% (410,652 tons)
• Improved waste diversion rate by 5% to 72%
• 631 new stores opened aligned with In-Store Energy Efficiency Standard
• 873 stores retrofitted with new, high-efficiency HVAC units (averaging 11% reduction in energy consumption)
• Nearly 100% of stores equipped with Energy Management System technology and LED lighting
• 99% completion of LED transition in Distribution Centers
• 1,526 stores backhauled their OCC
• 10,055 stores recycle Old Corrugated Cardboard (OCC)
• More than 1,100 stores achieved Grand Opening Look Daily (G.O.L.D.) certification
• Reduced product packaging in select household cleaning items
• Introduced 12 new plant-based cleaning products (growing to 24 by end of 2024)
• All 25 U.S. Distribution Centers are Good Distribution Practices (GDP) certified
• Deployed Chemical and Electronics Recycling Program (CERP) to over 15,500 stores, diverting over 1,200 tons of product from landfills

Social Achievements

• Enhanced benefits to support associates and their families
• Launched “Value of You” employer brand to improve talent strategy
• Launched first District Manager Leadership Academy (goal of training 450 by end of 2024)
• 87% completion rate of Workplace Violence Prevention De-escalation training
• Over 47,500 promotions across the organization
• 150% improvement in S.P.E.E.D. compliance since program initiation in 2022
• Introduced annual VOICE and Pulse Surveys with 80% completion rate
• Launched a social collaboration tool for associate communication
• Expanded Associate Resource Groups (ARGs) to six
• Invested $175 million in annualized wages for associates
• Introduced several enhancements to physical and mental well-being benefits
• Associate Relief Fund distributed more than $500,000 in grants to 418 associates
• Expanded Associate Relief Fund, impacting nearly 500 associates and launching Immediate Response Program
• Family Dollar/BGCA Doing More Platform awarded Golden Halo Award and Advocate for America’s Youth Award
• Nearly 8,000 Dollar Tree stores collected 3 million school supplies and 4.6 million toys for charity drives

Governance Achievements

• Refreshed stakeholder engagement and outreach program
• Launched reimagined Code of Conduct
• Hired new CLO and CECO with expertise in building and enhancing corporate compliance programs
• Hired additional professionals in ethics and compliance
• Conducted nearly 800 responsible sourcing audits with an average score of 8.3 out of 10

Climate Goals & Targets

Environmental Challenges

• Workplace violence
• Backroom store safety incidents
• Climate risk and resilience
• Waste management
• Chemical management
• Supplier engagement on sustainability topics

Mitigation Strategies

• Comprehensive Approach to Store Safety (CASS) program
• S.P.E.E.D. program to improve backroom safety
• Workplace Violence Prevention Program with training, investigation, response, prevention, and community engagement
• Decarbonization strategy across operational and value chain emissions
• Renewable energy strategy including PPAs, community solar, and green tariffs
• Waste reduction and recycling programs
• Chemical management strategy including updated chemical policy and RSL
• Comprehensive supplier engagement strategy including maturity model, training, and embedding sustainability expectations into Vendor Code of Conduct

Supply Chain Management

Supplier Audits: ~800/year

Responsible Procurement

• Vendor Code of Conduct
• Human Rights Policy
• Chemical Policy
• Palm Oil Policy
• Pollinator Protection Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, Science Based Targets initiative

Certifications: Good Distribution Practices (GDP)

Sustainable Products & Innovation

• Plant-based cleaning products

Awards & Recognition

• Newsweek’s America’s Greatest Workplaces for LGBTQ+ employees
• Golden Halo Award for Best Civic Engagement Initiative
• Advocate for America’s Youth Award