Shareholders seek climate action plan from Dollarama

TORONTO, June 1, 2023 /CNW/ - Dollarama Inc. shareholders are being encouraged to vote to adopt a robust climate action plan for its operations and supply chain, according to SHARE – Shareholder Association for Research and Education, an award-winning non-profit organization dedicated to mobilizing investor leadership for a sustainable, inclusive and productive economy.  

"Customers and investors alike want meaningful commitments and action from the companies they support," says Kyela de Weerdt, SHARE's Manager of Corporate Engagement and Advocacy. "Companies that don't act risk losing their social licence and falling behind as the global economy decarbonizes. All publicly traded companies need ambitious climate action plans today – the climate crisis demands it. Climate action is not just for energy producers."

Dollarama is exposed to significant operational, financial and regulatory risks associated with climate change. Although the company has acknowledged that climate-related weather events can disrupt logistics, and that rising fuel prices will increase operational costs, it has not assessed and managed these risks through adequate targets and timelines that reduce their risk exposure. 

Dollarama has a goal to reduce its scope 1 and 2 emissions intensity by 25 per cent by 2030, but this goal is not aligned with climate-science, nor with a 1.5°C pathway. Furthermore, Dollarama has no 2050 target nor any time-bound commitment to disclose and reduce scope 3 emissions, which likely constitute an overwhelming majority of the company's emissions.¹

"Peer companies continue to make net zero commitments. Dollar Tree announced it will be setting a science-based net zero target by June of next year while growing at a significantly faster pace than Dollarama, which has cited growth ambition as a key barrier to setting science-based targets," de Weerdt says. The company opened 65 stores last year, compared to Dollar Tree's 464 store openings. "By reporting emissions and 1.5°C-aligned reduction targets across all relevant emissions scopes, Dollarama can provide investors with assurance that leadership is appropriately reducing the company's climate footprint and addressing the growing risks associated with climate change."

With more than 1,400 stores across Canada, Montreal-based Dollarama is the country's largest dollar store retail chain. As such, it can play a major role in Canada's climate efforts and in setting an example for other retailers, all while improving its own reputation and long-term risk exposure.

SHARE offers a guide for corporate climate action plans and is part of a global network of investor interest that seeks to ensure public issuers adopt meaningful emissions reduction targets and the climate plans to back them up.

About:

SHARE is an award-winning non-profit organization dedicated to mobilizing investor leadership for a sustainable, inclusive and productive economy. It does this by supporting its investor network and amplifying their voices to improve corporate sustainability practices and implement better rules and regulations that govern capital markets.
For more information on SHARE, visit www.share.ca.

Background:

Scientific evidence, as presented the Intergovernmental Panel on Climate Change, shows greenhouse gas emissions must be halved by 2030 and reach net zero by 2050 to limit global warming to 1.5°C to prevent the worst consequences of climate change and meet the goals of the Paris Agreement.

SHARE represents a large network of Canadian asset owners including foundations, Indigenous trusts, universities and other asset owners that are committed to responsible investment and has $90 billion in assets under management. SHARE and its clients share the position that the risk of not acting on climate is too high for the planet and for their investments.

SHARE developed a Climate Action Plan guide as a resource for companies, investors and public issuers that outlines minimum expectations for companies to set and achieve emissions reduction targets.

A good plan includes the following:

1. The company has both short- and long-term emissions reduction targets; i.e., 2030 and 2050, and provides for third-party emissions verification of targets.
2. The company describes its emissions mitigation hierarchy and reliance on carbon offsets, credits and unproven or commercially unavailable technologies. 
3. The plan shows how the company is reducing emissions toward net-zero in its operations and products.
4. Climate expertise at a high level in the company.
5. Compensation is tied to the plan.
6. It includes annual public reports on the plan and targets. 
7. Political Lobbying is aligned with a company's decarbonization efforts. Direct and indirect lobbying efforts are fully disclosed annually. 

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¹ Scope 1 emissions are direct emissions from a company's operations. Scope 2 emissions are indirect emissions from the energy a company buys and uses. Scope 3 emissions are indirect emissions created in the supply chain, from production to use by consumers. Scope 3 emissions are the most difficult to address but make up most of a company's carbon footprint.

SOURCE SHARE (The Shareholder Association for Research and Education)

Jennifer Story, Director, Education and Advisory Services, C: +1 416.461.6310, [email protected]