Ahead of the Dollarama Inc. (TSX: DOL) annual meeting of shareholders on June 7, 2023, the BCGEU has released a proxy memo about two shareholder proposals. The first proposal relates to Dollarama’s sustainability-linked loan (SLL), which it entered into July 2022, with RBC and CIBC acting as co-sustainability structuring agents. The second proposal concerns Dollarama’s use of third-party staffing agencies.

Dollarama has not disclosed the specific terms and targets for the sustainability performance targets (SPTs) in its SLL. Investors are left in the dark as to whether the terms of the ESG Report Commitments and the SLL SPTs are the same. Instead, Dollarama uses troublesome language in its April 2023 annual information form, stating that the SLL SPTs “have been developed based on, and are generally consistent and conceptually aligned with” the ESG Report Commitments.

Shareholders have limited information on how staffing agency arrangements function or the costs and fees associated with such arrangements. Shareholders require more information to understand the benefits of using staffing agencies, and if the risks associated with their use are being managed.

BCGEU encourages investors to vote FOR both of the proposals.

Download Dollarama Proxy Memo PDF