Canadian value retailer Dollarama announced today it has converted its C$1.05 billion credit facilities to a sustainability-linked loan, with terms tied to the company’s performance on its climate and diversity goals.

According to Dollarama CEO Neil Rossy, the initiative makes the company one of the first Canadian retailers to integrate ESG targets into credit agreements. Rossy added:

“This marks another important step in our ESG journey, as we pursue our growth strategy and seek to create sustainable value for our stakeholders.”

The sustainability-linked loan is tied to two specific goals related to the company’s overall ESG strategy, including climate change and energy management to reduce Scope 1 and 2 greenhouse gas (GHG) emissions intensity, and a diversity, equity and inclusion (DEI) target to increase the female gender representation in management positions.

Dollarama’s ESG goals include reducing Scope 1 and 2 GHG emissions by 25% by 2030, and maintaining at least 40% female representation in management level positions.

J.P. Towner, Chief Financial Officer, said:

“The conversion to sustainability-linked credit facilities is a concrete example of Dollarama’s continued efforts to meaningfully integrate our ESG strategy and commitments into everyday decision-making, including in the active management of our capital structure.”