Environmental Stewardship : Dollar Tree, Inc. (DLTR)

Dollar Tree and Family Dollar Join the Beyond the Bag Consortium

The retailer aims to reduce dependency on single-use plastic bags as a Supporting Partner in the Consortium

This May, Dollar Tree, Inc. announced its participation in the Consortium to Reinvent the Retail Bag as a Supporting Partner, alongside other leading retailers committed to reducing single-use plastic bag waste. The Consortium, managed by Closed Loop Partners, convenes leading retailers aiming to identify, test and implement viable design models to create a system that serves the function of the current retail bag, providing customers with convenient, accessible and environmentally-sound solutions. Dollar Tree and Family Dollar’s commitment to the Consortium supports their mission to make sure shoppers have the things they need in their everyday lives, and to create an experience that is uniquely convenient and affordable––while also helping reduce waste in the process.

By advancing and testing innovative solutions to reinvent the retail bag and reduce single-use plastic waste with the Consortium, Dollar Tree and Family Dollar are helping more communities gain access to less wasteful ways to bring goods home. The Fortune 200 company continues to make steps to reduce its environmental footprint, and this partnership in the Consortium is another key step toward its goals.

As a Consortium partner, Dollar Tree, Inc. will participate in the Consortium’s ‘Bring Your Own Bag’ Pilot in select cities to encourage customers to shop with reusable bags more frequently. The program also includes test strategies, such as signage, marketing and customer prompts to reinforce shopper behavior and ultimately reduce dependence on single-use plastic bags.

"At Dollar Tree and Family Dollar, we are working to ensure we play a responsible role in the communities we serve, as we bring more value and convenience to our customers,” says Jennifer Silberman, Chief Sustainability Officer of Dollar Tree. “A key part of this is ensuring that we are reducing our waste and environmental impact across our stores. We look forward to our partnership with the Beyond the Bag Consortium, as we work together to identify more sustainable and accessible solutions that serve the function of the current retail bag and reduce plastic waste.”

“Dollar Tree and Family Dollar’s participation as a Supporting Partner in the Beyond the Bag Consortium is another key milestone for expanding our collective impact,” said Kate Daly, Head of the Center for the Circular Economy at Closed Loop Partners. “Collaboration across sectors is a critical part of this effort. Their partnership not only further moves the needle across the retail industry, but will also increase access to less wasteful solutions to bring goods home in more communities across the United States.”

Dollar Tree, Inc. to Set Science-Based Net Zero Target by June 30, 2024

To demonstrate Dollar Tree, Inc.’s continued commitment to support climate action, the company has announced that it will set a science-based Net Zero target by June 30, 2024. This target will cover the company’s entire value chain with the goal of reaching Net Zero emissions by 2050, with interim science-based goals for Scopes 1, 2 and 3 in the near term. Building on current work in progress, this future goal replaces the company’s current greenhouse gas (GHG) emissions reduction targets in favor of these more ambitious, science-based targets that demonstrate our commitment to take meaningful climate action.

The company is also developing a comprehensive, enterprise-wide sustainability and social impact strategy. Set to be released later this year, the strategy will build on existing initiatives and progress made over the last several years with a focus on priority environmental and social topics. In addition, a comprehensive climate action plan will be developed as part of the strategy.

What are Scopes 1, 2 and 3?

Scope 1 involves direct emissions from our owned or controlled sources
Scope 2 covers indirect emissions generated from purchased electricity, steam, heat and cooling
Scope 3 includes indirect emissions from upstream and downstream of our operations

The majority of Dollar Tree’s GHG emissions are Scope 3.

Leadership Dedicated to Change

With our dedication to making people's lives better, we carefully consider how we impact the communities where we open our stores and the world in which we operate our business. As we work toward this mission, we are continually thinking about how we can become a more sustainable business for a better tomorrow. Our current Environmental Policy commitments include:

Reduce our environmental impact and plan for potential impact of climate change and other environmental risks pertinent to the business.
Upgrade our operations to use more energy-efficient systems.
Partner with suppliers that also work to reduce their environmental impact.
Communicate our commitments and progress to our stakeholders.

Our commitments are applicable to all areas of our business, including, but not limited to retail stores and distribution center construction, renovation and maintenance, merchandise transportation, energy and water usage, education of our associates, supplier selection and expectations, waste management, and product selection and packaging.

To ensure the successful integration of our environmental strategy, our Board established a new committee, the Sustainability and Corporate Social Responsibility Committee, that will assist the Board in its oversight of the company’s sustainability and ESG risks and strategies, including those related to environmental and social issues.

View Our Environmental Policy

The Impact of Climate Change on Our Business

Climate change may impact our business in several ways — from operations to supply chain to product offerings. We are working across our operations and with suppliers to respond to climate change by increasing efficiencies, lowering our impact, and building resilience. In 2021, we invested approximately $34M in creating energy efficient stores and facilities to lower our energy consumption, emissions, and costs. Within our supply chain, we are optimizing our transportation and waste reduction initiatives and engaging suppliers on their emission reduction initiatives.

We worked throughout 2021 to reduce our energy consumption and emissions across our enterprise through the following programs: LED program, Energy Management System, freezer and cooler upgrades, high efficiency HVAC upgrades, insulation initiatives, battery technology, Transportation Optimization Software, Backhaul miles program, SmartWay shipping, and electric vehicle charging stations.

Energy Saved from Selected Programs: 121,140 MWh
Estimated Annual Savings: $13 Million

(See our 2023 Corporate Sustainability Report for details and important disclaimers)

Measuring and Reducing Our Carbon Footprint

In 2020, Dollar Tree, Inc. prepared a comprehensive greenhouse gas (GHG) inventory of Scope 1, Scope 2, and select Scope 3 categories to establish an initial baseline and outline strategic reduction opportunities. Our energy and GHG emissions are derived from our energy consumption across our retail stores, offices and distribution centers, and the emissions associated with the production of goods we sell and the transportation of those goods from our suppliers to our stores. For the first time in 2021, we defined and measured our baseline carbon emissions footprint, set our first-generation goals to reduce the intensity of our GHG emissions, and prepared a formal climate disclosure report. New in 2022, we have published a second year of carbon footprint data and will be participating in the CDP reporting framework to share GHG emissions data and benchmark ourselves with peer companies.

Our Operational Footprint: Scope 1 and Scope 2

Our operational energy and GHG emissions footprint includes the measurement of our U.S.- and Canada-based facilities, including over 16,000 retail stores, 27 distribution centers, and our corporate headquarters (SSC).

In 2021, we decreased Scope 1 and 2 emissions by approximately 11% per square foot across our retail stores, distribution centers, and SSC. We have several initiatives underway to achieve a reduction in our GHG emissions intensity — for example, installing LED lighting, cool roofs, and low-emissivity windows in our stores. We are also well on the way to incorporating large-scale renewable energy directly into our power needs, including a community solar project in Maine and installation of solar panels on our distribution center in Connecticut. We anticipate more exciting projects to come.

Our Value Chain Emissions: Scope 3

Our Scope 3 emissions, or value chain emissions, are a result of our activities that occur from sources not owned or directly controlled by us. In 2021, we completed a comprehensive assessment of our total Scope 3 emissions, and we focused our 2021 reporting on purchased goods and services, upstream transportation and distribution, and business travel.

We understand that a large portion of our emissions come from producing the products we sell. In 2021, we engaged with our top suppliers on their carbon strategies surrounding their greenhouse gas goals and renewable energy targets. Our target is to have 75% of our supplier spend be with companies that have measurable greenhouse gas reduction or renewable energy targets by 2031. We ended 2021 with 38% of our supplier spend with companies that have measurable greenhouse gas reduction or renewable energy targets. In our 2022 CSR, we reported an approximately 16% reduction of our upstream transportation and distribution associated emissions.

Additional Environmental Policies

In addition to our Environmental Policy, Dollar Tree, Inc. has enacted many policies in alignment with our environmental initiatives. These policies help to ensure our products are always sustainably sourced.

Palm Oil Policy

This policy ensures the palm oils contained in our private label and national brand products are retrieved responsibly and sustainably.

View Our Palm Oil Policy

Pollinator Protector Policy

This policy seeks to mitigate the use of pesticides and insecticides, among other things, to protect pollinator health.

View Our Pollinator Protector Policy

Chemical Policy

This policy establishes a list of chemicals that cannot be added to products sold by our organization.

View Our Chemical Policy

2023 Environmental and Social Sustainability Update

This years’ update differs from prior reports because we are currently working to develop our full environmental and social sustainability strategy, which will be released later this year. This 2023 report focuses on two important topics, our people and the climate. Within these chapters you will find updates including our first Task Force on Climate-related Financial Disclosures (TCFD) report as well as summaries of our racial equity assessments. We also share details on our exciting new commitment to set a science-based Net Zero emissions target.

View Report

Reducing Our Environmental Impact