Dollar Tree Inc: Net Zero Climate Transition Plan
WHEREAS: The increasing rate and number of climate related disasters affecting society is causing alarms to be raised globally, making the corporate sector’s contribution to climate mitigation a significant policy issue.
In addition to environmental and social harms, climate change is creating systemic risks to the economy. The Commodity Futures Trading Commission underscored that climate change could impair the productive capacity of the U.S. economy.
Shareholders are increasingly concerned about material climate risk to both their companies and their portfolios. The Climate Action 100+ initiative, a coalition of more than 600 investors with over $60 trillion in assets, issued a Net Zero Benchmark (Benchmark) calling on companies to develop targets and a plan to reduce their scope 1-3 greenhouse gas (GHG) emissions to net zero, improve climate governance, and provide specific climate related financial disclosures.
A failure to comply with Benchmark goals and disclosures is likely to pose a material risk to Dollar Tree and its shareholders. BlackRock’s CEO notes that investment flows into sustainable and climate aligned assets will drive long term outperformance and that companies should disclose plans for how their business model will be compatible with a net zero economy.
A core indicator of company alignment with the Paris Agreement is Indicator 1 of the Benchmark, titled “Net Zero GHG emissions by 2050 (or sooner) ambition” (Net Zero Indicator), which seeks disclosure on whether the company has set an ambition to achieve net zero GHG emissions by 2050 and whether such ambition explicitly includes scopes 1, 2, and relevant scope 3 emissions.
While Dollar Tree has a goal to reduce its scope 1 and 2 emissions intensity by 25% by 2031, this goal is not aligned with the global 1.5 degree Paris goal. Furthermore, the Company has failed to establish a goal to reduce its scope 3 emissions, which constitute 80% of the Company’s total emissions. By setting 1.5 degree-aligned GHG reduction targets across all relevant emissions scopes, reporting a clear climate transition plan, and demonstrating progress toward achieving net zero emissions across its full range of emissions by 2050 or sooner, Dollar Tree can provide investors with assurance that management is appropriately reducing its climate contribution and addressing the growing risks associated with climate change.
BE IT RESOLVED: Shareholders request the Board issue a report, at reasonable expense and excluding confidential information, disclosing how the Company intends to reduce its GHG emissions in alignment with the Paris Agreement's 1.5 degree goal requiring net zero emissions by 2050, including its relevant Scope 3 emissions.
SUPPORTING STATEMENT: Proponents suggest, at Company discretion, the report also include:
A timeline for setting 1.5 degree aligned Scope 1-3 emissions reduction targets;
An enterprise-wide climate transition plan to achieve net zero emissions;
A rationale for any decision not to set targets aligned with the Paris Agreement’s 1.5 degree goal;
Other information the Board deems appropriate.
Resolution Details
Company: Dollar Tree Inc
Lead Filers:
As You Sow
Year: 2022
Filing Date:
December 2021
Initiative(s): Say On Climate
Status: 54.8% Vote