Dollar General’s Sustainability: The Good & The Bad

We rate Dollar General a .5/16, meaning that they’re well below the Department Store sector average of 2.31. Here’s why!

June 22, 2023

Introduction

Dollar General is synonymous with savings – not sustainability. Yet, Dollar General releases an annual ESG report. Let’s take a look at what Dollar General’s sustainability and social justice initiatives!

What are they doing for the good of the planet, and where are they coming up short?

The Good

Charitable Giving

The Dollar General Literacy Foundation was established in 1993 on the belief that literacy opens up doors for personal, professional, and economic growth.

Their Foundation funds nonprofit organizations, schools, and libraries within a 15-mile radius of Dollar General stores, and helps individuals of all ages learn to read or learn English. In 2021, the Foundation awarded more than $16.4M to nonprofit organizations, schools, and libraries serving over 1.7M learners. 

Dollar General also partners with Feeding America to reduce food waste and support local food bank distribution programs. In 2021, they donated $1M and over 3.7M meals to Feeding America! 

They’ve also partnered with the Arbor Day Foundation to advance reforestation efforts and create green spaces in urban markets. To date, they have planted over 20,000 trees!

dollar general's sustainability

Healthier Products

Today, Dollar General has over 18,000 stories in 46 states, prioritizing accessibility and convenience for their customers.

They now offer “Better for You” in 8,000+ stores which includes healthier food options, and in some stores, fresh produce.

They’re also working to provide more affordable healthcare products and services, especially in rural communities that have limited access to healthcare. 

Employee Initiatives 

Dollar General is one of the fastest-growing retailers in America, and boasts initiatives to help their employees build their careers and skill sets.

They offer internal training, and nearly 76% of store managers were promoted from within as of January 2022.

In 2021, they were recognized by the Human Rights Campaign Foundation’s Corporate Equality Index for LGBTQ+ workplace inclusion efforts.

They also offer full-time employees access to employer-paid, full tuition covered degree programs from Strayer University and Capella University – allowing employees to receive further education.

Their reports showcase a diverse, inclusive workforce that has internal development opportunities and programs to help employees advance their skill sets. 

The Bad 

Environmental Impact

Dollar General has committed to a 15% emissions reduction by 2026 and 30% reduction per square foot by 2031. But their stores and products still create tremendous impact – in terms of both emissions and waste.

Most of Dollar General’s products are disposable, plastic packaged, or both.

By reducing the size of many popular products, they are creating more waste.

Dollar General also lags behind its peers on sustainability reporting and commitments, and while their ESG report mentions issues like corporate social responsibility and product quality, in reality there is little information or concrete changes being made.

Supply Chain Management

While their ESG Report states Human Rights and Workplace Conditions, Dollar General has routinely faced criticism for its supply chain management practices and labor conditions.

They also have huge emissions coming from their transportation sector, and no meaningful sustainability initiatives around transportation emissions. 

 

dollar general's sustainability

Chemicals in Products

Dollar General has faced criticism for the chemicals used in its products.

In 2015, a report by the Campaign for Healthier Solutions found that 81% of the products tested from Dollar General contained hazardous chemicals, such as lead and phthalates.

Their Restricted Substance List has expanded from 8 to 19 chemicals, and they claim their products undergo periodic laboratory testing. But, they still experience chemical-related product recalls. 

Dollar General’s Sustainability

On Karma Wallet, we rate Dollar General a .5/16, meaning that they’re well below the Department Store sector average of 2.31. In terms of both Planet and People they are falling below their competitors, and have a long way to go to become more sustainable. Deep dive into their rating at Karma Wallet!

dollar general's sustainability on karma wallet