Dollar Tree Inc: Net Zero Targets & Climate Transition Planning

January 19, 2023 As You Sow

WHEREAS: The window for limiting global warming to 1.5 degrees Celsius (“1.5°C”), and thereby avoiding the most catastrophic impacts of climate change, is quickly narrowing. Thus, immediate emissions reduction is required of all market sectors and industries.[1]

Dollar Tree, the seventh-largest importer in the United States,[2] identifies climate-related risks in its 10-K, including “government or industry actions addressing the impact of climate change,” which “may result in increases in merchandise or operating costs,” as well as climate-related physical risks to its distribution network.[3] By reducing emissions from its full value chain, Dollar Tree can do its part to mitigate the supply chain and operational risks posed by climate change, while also preparing itself to comply with heightened regulations.

In response to growing climate risk, nearly 55% of Dollar Tree’s shareowners voted in favor of a resolution last year asking the Company to report how it intends to reduce its emissions “in alignment with the Paris Agreement's 1.5 degree goal requiring net zero emissions by 2050, including relevant Scope 3 emissions.”[4] Dollar Tree has not implemented this resolution.

Dollar Tree’s current targets, unchanged since last year’s shareholder vote, remain inadequate: the Company currently plans to reduce its Scope 1 and 2 emissions intensity by only 25% by 2031,[5] half of the roughly 50% reduction by 2030 required to align with the global 1.5°C goal.

Scope 3 emissions represent the vast majority of Dollar Tree’s climate impact, representing 83% of its total emissions footprint.[6] However, Dollar Tree has not yet set a Scope 3 emissions reduction target. While the Company has announced an intention that by 2031, 75% of its supplier spend will be with companies “with measurable greenhouse gas reduction or renewable energy targets,”[7] Dollar Tree does not provide any standards for the quality of these supplier goals.

By setting science-based reduction targets for its Scope 1, 2, and 3 emissions and disclosing a decarbonization plan, Dollar Tree can align with peers and assure investors that it is addressing the operational and regulatory risks associated with climate change.

BE IT RESOLVED: Shareholders request that the Board issue a report, at reasonable expense and excluding confidential information, disclosing how Dollar Tree intends to reduce its Scope 1 – 3 value chain greenhouse gas emissions in alignment with the Paris Agreement's 1.5°C goal requiring Net Zero emissions by 2050.

SUPPORTING STATEMENT: Proponents recommend, at Board discretion, that the report include:

A timeline for setting 1.5°C-aligned near-term Scope 1, 2, and 3 emissions reduction goals;
A timeline for setting long-term net zero goals for Scope 1, 2, and 3 emissions;