2021 ESG Report

DOLLARAMA ESG REPORT JUNE 2021

PROVIDING AFFORDABLE, EVERYDAY ESSENTIALS AND MORE KEY FIGURES

Dollarama is a recognized Canadian value retailer offering a broad assortment of affordable consumable products, general merchandise and seasonal items through a diverse and dynamic team of over 24,000 people. Our products, available at select, fixed-price points up to $4.00 appeal to all demographics and income ranges. Our corporately operated stores across Canada provide compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns. Select products are also available, by the full case only, through our online store.

Internationally, we own a majority interest in Dollarcity, a fast-growing Latin American value retailer with over 3,000 employees. Dollarcity offers a similar assortment of consumable products, general merchandise and seasonal items at select, low fixed price points in local currencies through its over 264 locations in Colombia, El Salvador and Guatemala.

Dollarama is committed to managing its operations and resources responsibly, and serving its customers with purpose to create sustainable, long-term value for all its $4B+ 24,000+ 6,000 in 2020 employees everyday and stakeholders. revenues across Canada seasonal products

A CLEAR PURPOSE STRONG VALUES 1,356 14M 700+ Dollarama stores square feet of Canadian To provide Canadians from ENTREPRENEURIAL and counting at retail space and suppliers and all walks of life with the year end 2.16M square feet service providers CUSTOMER-FOCUSED of distribution and and 800+ overseas best quality and value on warehousing space vendors every dollar they spend, and VALUE-ORIENTED provide them with proximity PASSIONATE 5M+ 80% 3,000+ and convenient access to customers of Canadian store employees affordable, everyday items shop weekly households live promoted to new AGILE AND that address their needs and at Dollarama within 10 km positions within SOLUTION-DRIVEN whether in-store of a Dollarama the organization exceed their expectations. or online in 2020

References to a specific year are meant to designate the corresponding Dollarama fiscal year. Certain images used in this report were taken before COVID-19 health and safety measures were implemented. For more information about this report, please consult the 'Additional Information' section. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 3

COMMITTED TO BEING A RESPONSIBLE RETAILER AND BUILDING A SUSTAINABLE BUSINESS

As a leading Canadian value retailer with over 1,350 stores measurable goals. Our commitment to being a responsible from coast to coast, we contribute every day to moving retailer and to building a sustainable business for the Canada’s economy forward. In the face of COVID-19, our future remains unwavering. role as a responsible retailer, employer and business partner took on an even greater purpose. A few highlights include: > Significant enhancements to our talent development Millions of Canadians from all walks of life were able and retention programs within our stores resulting in to count on their local Dollarama for safe, convenient lower turnover and an increase in internal promotions. and affordable access to everyday essentials. Our value > Restructuring of our product quality and compliance promise and product selection were particularly relevant program with commitments to set the bar higher year to customers in 2020 in a time of need. after year.

Families and communities across Canada benefited from > Pursuit of tangible and measurable initiatives to minimize Stephen Gunn Neil Rossy our ability to keep most of our stores open through the our energy consumption and environmental footprint Chair of the Board President and CEO pandemic. Our 23,300 store employees were able to count across our operations. on continued employment, guidance and support. Hundreds > Full implementation of our three-pronged approach to of Canadian suppliers and service providers, and hundreds vendor compliance, increasing our ability to safeguard more around the world, were able to count on our continued human rights and, where possible, exert a positive patronage. All businesses in Canada were put to the test influence in our extended supply chain. by the pandemic. On the strength of our dedicated and passionate team and the resilience of our business model, > Enhanced disclosures in alignment with recognized Dollarama adapted efficiently to a new reality and emerged ESG standards and stakeholder expectations with clear stronger. Management and the Board are pleased with commitments to achieve additional objectives. Dollarama’s performance from all perspectives. Over the last two years, our approach to ESG has broadened. We have adopted a more integrated and proactive approach We look forward to continued aimed not only at managing risks but also at creating ESG-related progress in the years ahead, value, and we have enhanced our ESG governance and while serving Canadians from all walks oversight frameworks. of life with purpose. Further embedding sustainability practices in our decision making has resulted in an organization that is more While 2020 will have been defined by the pandemic, the engaged on the issues that matter most at the operations, unprecedented business environment did not distract management and Board levels. Proud of our progress, we management or the Board from making progress acknowledge that we can and must do more, and we are on our sustainability journey, critically assessing motivated as a team to continue challenging ourselves to our achievements and challenges, and setting new, meet the expectations of our stakeholders. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 4

BUILDING A SUSTAINABLE BUSINESS WITH A STRONG ESG FRAMEWORK

Since our last report, we have made important progress Effective in this report, we have adopted the capital markets as an organization to further integrate ESG considerations focused and industry specific Sustainability Accounting in our business and operating strategies, and to enhance Standards Board (SASB) standards for the purposes of our tracking and measurement of key ESG metrics. ESG reporting. While Dollarama falls into the Multiline and Specialty Retailers and Distributors industry standard We are pleased to share our achievements in this second based on SASB’s own Sustainable Industry Classification ESG report as well as the new goals we have set for System®, we have chosen to include in our SASB index ourselves and our various ESG-related initiatives underway. select indicators from other SASB industry standards, In this regard, we have strong engagement at all levels of to reflect Dollarama’s unique business model and our the organization and the full support of the Board as we commitment to enhanced disclosure. look to continually improve our ESG program and related disclosure. Recognizing the importance of climate change for all stakeholders, we have also committed to defining our Josée Kouri While COVID-19 impacted progress on some fronts in 2020 roadmap and approach towards alignment and integration Senior Vice President as increased focus was placed on the health and safety of of the recommendations of the Task Force on Climate- Legal Affairs customers and employees, the pandemic reinforced the related Financial Disclosures (TCFD) in the future. Our Corporate Secretary importance of building a sustainable business with a strong ongoing stakeholder engagement confirms that we are ESG framework. Our ability to adapt and succeed in the focusing on the right priority issues. face of a health and economic crisis of global proportions spoke to the resilience of our business and the agility of We will continue to strengthen our approach to sustainability our people. We intend to put that agility to work in building through the pursuit of the goals and targets outlined in this a sustainable future. report and the robust governance framework described in the following pages. Our comprehensive ESG program will ensure that we continue to manage all aspects of our “We will continue to strengthen our business responsibly and that we do so with transparency. approach to sustainability through the pursuit of measurable and actionable From taking care of our people, to offering quality products, goals, guided by our robust ESG safeguarding human rights in our supply chain and governance framework.” adapting to the risks and opportunities of climate change, Dollarama is addressing the relevant issues for our business and we look forward to continuing to report on our progress. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 5

THE IMPORTANCE OF ESG GOVERNANCE AND ACCOUNTABILITY

ESG matters are ultimately the responsibility of the Board of Directors of Dollarama and and continues to work toward enhancing disclosure in this regard. Both management over the last several years have been further embedded in its charters and practices. and the Board engage with stakeholders on an ongoing basis to understand and take Management is responsible for the development and implementation of ESG strategies into account their expectations regarding ESG.

DOLLARAMA BOARD OF DIRECTORS > Responsible for oversight of corporate strategy, enterprise risk management framework, corporate governance policies, and human capital management > ESG matters embedded in Board mandate and all Board committee charters > Ongoing engagement with various stakeholders regarding ESG > Ensure Dollarama has appropriate and timely ESG disclosure

AUDIT COMMITTEE HUMAN RESOURCES AND NOMINATING AND GOVERNANCE COMPENSATION COMMITTEE COMMITTEE > Responsible for overseeing ESG risks associated with operations and supply chain > Responsible for reviewing policies and practices > Responsible for developing and enhancing > Receives and reviews quarterly reports from pertaining to human capital management, including Dollarama’s approach to matters of corporate management on ESG risks and opportunities from an ESG perspective governance, including Board diversity > Assesses adequacy and effectiveness of > This includes those related to corporate culture, > Responsible for assessing, developing, management’s ability to monitor, manage and recruitment, retention, incentives, advancement, recommending and implementing corporate mitigate ESG risks as well as practices for supporting diversity and governance policies and guidelines > Reviews ESG disclosure inclusion in the workplace

MANAGEMENT COMMITTEE (CHAIRED BY THE PRESIDENT AND CEO) > Identifies ESG risks and opportunities > Responsible for the development and implementation of ESG strategies in alignment with business priorities and stakeholder interests > Responsible for reporting to the Board and its committees on ESG risks and opportunities

SENIOR VICE PRESIDENT, LEGAL AFFAIRS, AND CHIEF FINANCIAL OFFICER (BOTH MEMBERS OF THE MANAGEMENT COMMITTEE) > Responsible for engaging with stakeholders on ESG issues and providing feedback to the Management Committee and Board > Responsible for communicating and reporting on ESG matters, including ensuring appropriate and timely disclosure DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 6

A CLEAR FRAMEWORK AND EVOLVING TRACKING PRIORITY ISSUES OUR GOALS

Dollarama undertook in 2018-2019 to formally define its ESG framework and the priority issues most relevant to its business and Our ESG goals and initiatives, as well stakeholders. This process was informed by Dollarama’s enterprise risk assessment, coupled with an in-depth ESG materiality as their current status, are indicated assessment. Supporting this process were specialized ESG third-party experts and feedback from various stakeholders, including throughout this report. The status of each shareholders and shareholder advocates, executives and employees, customers, and business partners. goal is defined as follows:

Over the last two years, Dollarama has continued to improve data collection, set actionable goals and enhance ESG disclosure. Annual Achieved enterprise risk assessments and ongoing stakeholder engagement continue to inform this journey to ensure that Dollarama remains In progress aligned with evolving ESG trends and stakeholder expectations. Dollarama will continue to report on its progress every two years. In this ESG Report, Dollarama is aligning with the Sustainability Accounting Standards Board (SASB) Standards for Multiline and New Specialty Retailers & Distributors and is also reporting on additional indicators from other SASB industry standards that are relevant and applicable to Dollarama’s business and operations. Dollarama’s ESG priority issues outlined in this report remain in line with those previously identified but continue to be further defined and expanded.

OUR OUR OUR OUR PEOPLE PRODUCTS SUPPLY CHAIN OPERATIONS

Talent attraction, Product safety Responsible sourcing Climate change development and retention and quality Fair labour practices Energy management Health and safety Product packaging Human rights Recycling and waste and lifecycle management Fair labour practices management Customer service Diversity and inclusion Data security and customer privacy DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 7

EMPLOYING CANADIANS COAST-TO-COAST As a successful value retailer serving Canadian families, Dollarama provides secure employment to thousands of people across the country. From major cities and towns to small communities in remote regions, we offer individuals from all walks of life, backgrounds and experiences access to the job market, flexible work schedules to meet diverse needs and meaningful career advancement opportunities, all in a stimulating work environment.

At the end of 2020, we counted over 23,300 store employees. We have historically opened 60-70 new stores annually and our personnel needs grow in tandem, with approximately 17 associates per store. Approximately 40% of our store employees are full-time and the remainder are part-time. Our retail network is supported by a team of nearly 850 field management, distribution, warehouse and corporate employees, a large proportion of which are based in Montreal.

Our centralized Quebec-based distribution centre and warehouses also provide work opportunities through employment agencies to fulfill up to 1,500 positions during peak periods. Our logistics staffing needs, which fluctuate throughout the year, also grow as our store network expands.

23,300 850 Up to 1,500 store field management, work opportunities employees distribution, warehouse through employment and corporate employees agencies

ATTRACTING AND RETAINING THE BEST TALENT Working in a retail environment allows individuals to acquire valuable skills and experience Our compensation approach across our At store level, turnover rates become that can be leveraged to advance a career in the retail industry or in other sectors of the operations is reviewed regularly to ensure significantly lower as management economy. For this reason, the retail sector has long been the principal point of entry into that wages for everyone reflect the nature responsibilities increase, the lowest the job market for large numbers of Canadians and newcomers. of the work performed and are competitive being for store manager positions where in the market given our significant labour the average tenure is now over six years. We recruit actively all year long to staff our expanding store network and to manage the needs. We also continually enhance our In 2020 and throughout the COVID-19 turnover in our operations, including higher voluntary turnover rates for entry-level store training and development programs to help pandemic, we were pleased to be able positions, which is common across the retail industry. We also work with a limited number foster the success of our people and to to provide our employees with continued of vetted and well-established employment agencies to recruit and train workers to staff our ensure we retain the best talent. We do so employment as an essential business logistics operations. The use of such agencies is integral to our business model in order to while ensuring the health and well-being and saw a marked decrease in voluntary continuously maintain the significant staffing requirements of these un-automated operations, of everyone working in our operations, no turnover rates across all store level needs which fluctuate throughout the year based on sales volumes, and to fulfill positions matter where they work and regardless positions. that are subject to regular turnover due to the large number of entry-level positions. of status as employee or agency worker. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 9

Competitive wages and benefits overnight shift premiums, and seasonal While starting wages for entry-level premiums. Higher hourly base wages store associate positions often reflect for logistics workers compared to store the provincial minimum wage, associates associates reflect the different nature of OUR COVID-19 RESPONSE can quickly gain access to advancement their work, evolving market conditions opportunities and increased compensa- as well as permanent pay increases for In the context of COVID-19, and as a recognized essential business, tion. From full-time associate to store agency workers implemented in 2021. Dollarama stores remained open to provide Canadians across the manager, all the way to a field management country with convenient access to affordable everyday essentials. This position, each step includes increased Dollarama is committed to ensuring was made possible by the commitment and dedication of people in responsibility and compensation. equitable pay across all positions. In this stores, in our distribution centre and in our warehouses. Everyone regard and while accounting for factors adapted quickly to significant changes in our operations to provide for Competitive wages and flexible work such as position, tenure and location, we a safe store and work environment. In addition, our people came to schedules are coupled with other benefits closely track wages to monitor gender work every day to maintain well-stocked shelves and serve customers such as group insurance and pension pay equity. with passion and dedication. plans. We offer a competitive group insurance plan for eligible employees In order to recognize the efforts and contributions of the workforce, with different coverage options, from Goal special compensation measures were implemented throughout 2020 basic health to dental benefits. In addition, Revamp and launch new Employee to reward store employees across Canada and logistics workers in we offer an optional company-matched Assistance Program Montreal. For store employees, defined contribution pension plan to Achieved this included a four-month 10% eligible employees. pay premium followed by a one- Revamp completed in 2019; Rolled out on time gratitude bonus of $300 for While our entry-level store associate an ad-hoc basis throughout the pandemic in full-time employees and $200 for 2020, formal launch company-wide in 2021. positions represent over 65% of our store part-time employees. Logistics employee base, only 39% of our store employees and workers benefitted employees earn minimum wage. In 2020, from equivalent temporary pay the average base hourly wage of store premiums and increased seasonal employees was $15.08. HELPING OUR PEOPLE GROW premiums. PROFESSIONALLY In its logistics operations, Dollarama At Dollarama, we are committed to We also ensured that our employees were able to bridge any gap in maintains wage rate parity between providing our employees with equitable earnings and had access to appropriate support resources if they its employees and agency workers opportunity to grow and advance their were unable to work due to COVID-19 related circumstances. accomplishing the same work in its career with us. From technical and soft distribution centre and warehouses. No skills training, peer-to-peer learning Our revamped employee assistance program (EAP) was put at the logistics employee or agency worker earns opportunities, to structured career paths disposal of employees for additional support, providing confidential less than $15.00 an hour and hourly rates and performance evaluations, we invest in access to both physical and mental health resources, and many range from $15.00 to $23.11 depending on our people at every stage and level. other services for a range of issues whether of a work-related or position, tenure and location, excluding personal nature. benefits where applicable, evening and DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 10

Over the last several years, we have attentive training sessions, we offer paid expanded our training and development training hours to both the trainee and the programs and leveraged our growing trainer over and above a store’s operational use of technology in stores to ensure hours allocation. employees benefit from a broad range of training and coaching opportunities. ASMs and SMs are trained by certified This provides developing employees with training managers (CTMs). CTMs are top- opportunities to learn, while our store performing store managers from across and field managers also develop their the country who have developed training own leadership abilities. We have created and coaching skills through our CTM positions intended to prepare employees certification program. We currently have for greater responsibilities so that they over 200 CTMs across Canada, who either are adequately supported in every step of receive trainees in their home stores or their professional development. travel to other stores to train and coach new managers. Another key component of talent development is performance assessment. Our training programs are supported All store employees with management by an internally developed training responsibilities take part in annual per- application launched in 2020 and delivered formance evaluations with their managers through the handheld devices used by to set goals, obtain and provide feedback. store employees in their everyday work. The application introduces a gamified store employees to develop technical and stones to management responsibilities. Store training training approach to support staff soft skills so that they can grow and thrive In 2018, we created the position of Team Training begins as soon as employees onboarding, with a program dedicated at Dollarama. Lead designed specifically for internal start their new roles, regardless of their to each store position. It helps bring promotions, providing a bridge between position, to ensure understanding of the further balance between independent an entry-level associate position and store Goal general operations of a store, the tasks to learning and instructor-led training. Training application program for store management responsibilities. Over 450 accomplish on a typical shift, health and Currently available for all store positions associates to be developed and launched store associates were promoted to this safety standards and customer experience with management responsibilities, our by 2022 position in 2020 ahead of taking on formal expectations. goal is to develop and launch a program New store management responsibilities. for associate training by 2022. We also In 2020, over 3,000 store employees More comprehensive training programs integrated a new flash training function were promoted to positions of greater are provided for store positions with to easily introduce training on special responsibility. management responsibilities. These are topics, new procedures or for refresher Promoting from within led by assistant store managers (ASMs) or training. This will contribute to ongoing On-the-job learning is also an important We also strive to bridge the gap between store managers (SMs) and focus on tactical training post-onboarding for all positions. component of talent development. To help store and field management. While a and technical content so new hires or newly ensure that high-potential employees and store manager is responsible for one promoted employees are successful in These are but a few examples of the many those looking to advance their careers in location, a district manager can be their new positions. To provide additional training and development programs that retail are able to grow, we have created responsible for 7 to 18 stores depending incentive and to ensure successful and help provide a solid framework for our store positions intended as stepping on geography. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 11

As responsibilities and geographic scope to permanent DM positions. Specifically, provides tools to learn how to prioritize, ENSURING THE HEALTH increase exponentially between these two nine DMiT participants have since been set objectives and track results. It is also AND WELL-BEING OF ALL positions, we recognized that this could promoted to DM positions. This has focused on helping managers provide COLLEAGUES make it more challenging to successfully resulted in a notable decrease in external impactful and positive reinforcement, We strive to ensure that our team remains promote from within. In 2018, we created hires for field management positions. resulting in motivated store teams with dedicated to the common objective of the developmental position of District- clear goals working for strong leaders. maintaining a safe work environment Manager-in-Training (DMiT) to provide Developing our leaders through consistent operating routines and high-performing store managers with Over the last three years, we have developed, Built on the ‘train the trainer’ principle, by considering health and safety in every increased responsibilities, similar to piloted and deployed a comprehensive executives and field leadership had to first activity. Store, warehouse and distribution that of district managers but on a more management program called GPS, which be trained prior to rolling out GPS in stores. centre management is accountable for manageable scale. This allows them to stands for ‘Guide, Progress, Success’. At the end of 2020, 92% of district managers this responsibility and for ensuring that learn and build the required skills before Based on active supervision principles and had been trained and had subsequently any machinery or equipment being used advancing to the next level. Enrollment through training and coaching, the program rolled it out to approximately 85% of our or task being undertaken is safe. Our in the DMiT program has more than provides our leaders with a framework to stores. We intend to complete the roll-out objective is to comply at all times with doubled since its inception and half of become more effective managers. It sets of GPS training in all stores in 2021. established operating procedures and the candidates have since been promoted out clear and standardized expectations, health and safety standards set out in As the deployment phase reaches our manuals and various site-specific completion, our focus in 2021 and beyond training programs and to eliminate or, is on ensuring the sustainability of the at the very least, reduce hazards, to program through continued engagement prevent occupational injury. and goal setting. GUIDE, PROGRESS, In stores, which represent the work SUCCESS environment for the largest proportion of our workforce, the primary focus of our “GPS leverages the best health and safety training is on receiving practices of all our regions Goals merchandise, handling carts and boxes, and provides coaching and Increase promotions from store level to field working safely with box cutters, organizing management via DMiT program training that elevates the risers and using ladders. Prevention leadership and management Achieved begins with mandatory training for all skills of everybody on our new hires, as well as regular refresher Enrollment in DMiT program more than training for all store employees no matter store operations team, myself doubled since inception, with half of their position. included. It’s not about working candidates promoted to DM positions harder but about working since 2018. better and smarter.” Goal Complete roll-out of GPS training - Johanne Choinière Reduce frequency and severity of lost-time in stores in 2021 injuries Chief Operating Officer In progress In progress DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 12

COVID-19 HEALTH AND SAFETY PROTOCOL

At the onset of COVID-19, Dollarama acted quickly to implement new COVID-19 related safety protocols and worked closely with public health authorities to ensure the right measures were put in place and updated as public health guidelines evolved. Additional operating hours were deployed for the execution of these measures, which are expected to remain for the foreseeable future.

Store network measures Distribution centre and warehouse measures > Adherence to hygiene, respiratory, physical > Adherence to hygiene, respiratory, physical distancing and self-isolation practices in distancing and self-isolation practices in Our objective is to reduce the frequency and severity of accordance with public health guidelines accordance with public health guidelines lost-time injuries most commonly related to handling > Mandatory hand sanitization upon store > Temperature and health checks at the merchandise, using box cutters and ladders, falling objects, entry and store greeter where required entrance of each facility and slipping or tripping. In early 2021, we were pleased > Strict and frequent cleaning and sanitization > Strict and frequent cleaning and to launch a new mandatory health and safety training protocols with a focus on frequently touched sanitization protocols, including sanitization video and accompanying employee quiz, as we continue to surfaces of equipment used by workers before the start of each shift leverage technology to engage employees in the importance > Use of personal protective equipment, of health and safety. including mandatory masks for employees > Use of personal protective equipment and customers including mandatory masks for all workers and site visitors In our distribution centre and warehouses, our focus is on > Installation of plexiglass shields at all cash ensuring that people work in a safe and structured work counters > Disinfectant stations installed throughout environment, by following established procedures in order the premises > Distancing markers in queue lines and to maintain operational efficiency. Daily operations primarily directional arrows in aisles > Staggered lunch breaks and shift start and involve the handling and assembling of merchandise by the end times, among other onsite measures, > In-store customer capacity limits and pallet for shipment to our stores across the country. As to promote physical distancing crowd control such, our health and safety focus is on preventing lost-time > Signage throughout the premises with > In-store signage and broadcasting of safety injuries primarily related to bumping into rolling objects or safety and physical distancing measures and physical distancing measures applicable handling merchandise. applicable to all workers to customers and employees > Strict protocols in place for any probable > Encouraging customers to use tap and Proper personal protective equipment is a prerequisite, or confirmed COVID-19 case and each worker must undergo health and safety training. pay with debit or credit cards Moreover, onsite supervisors are responsible for ensuring > Strict protocols in place for any probable that safety policies and procedures are being followed at all or confirmed COVID-19 case times. We also have a large number of first-aid responders onsite to address any minor incidents. The same strict procedures, policies and safety training requirements apply to all, whether employees or agency workers. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 13

A DIVERSE AND INCLUSIVE WORKPLACE Store Store Executive Board Dollarama is committed to equity and employees managers officers members1 WOMEN equality in all its employment practices 76% Women 72% Women 33% Women 33% Women LEAD HERE and policies. We seek to recruit, develop, 24% Men 28% Men 67% Men 67% Men reward and retain our employees on the In early 2021 and for the second basis of merit, ability and performance. year in a row, Dollarama was named to The Globe and Mail’s Discrimination based upon race, colour, annual Women Lead Here sex, pregnancy, sexual orientation, civil benchmark of executive gender status, age (except as provided by law), diversity in corporate Canada. religion, political convictions, language, Warehouse and Warehouse and Corporate Field The Globe and Mail’s Report on ethnic or national origin, social condition, distribution centre distribution centre employees management Business researchers evaluated employees managers disability or any other factors prohibited 49% Women 39% Women the top tiers of executive by law is not tolerated in our workplace. 4% Women 25% Women 51% Men 61% Men leadership at hundreds of Dollarama has clear policies in place 96% Men 75% Men Canadian companies to narrow outlining our expectations in this regard, the list down to 71 companies on which all employees are trained and for considered to have significant which managers are responsible. These numbers of female executives. policies also go beyond employees and cover customer interactions as well—both regarding the standards our employees are expected to uphold, and the respect and dignity with which they must, in turn, represented, with the recruitment of directors (43%) and three of nine directors serve, a testament to the inclusiveness of be treated. women in these positions remaining an (33%) who are women. our workplace. At this time, and with the industry-wide challenge. exception of the Board and executive officer Gender diversity levels, Dollarama does not formally track the Goal While we do not set targets regarding At the Board of Directors level, a formal Maintain 30% female gender diversity on racial and ethnic group representation of its the representation of women among Board Diversity Policy was adopted in Board of Directors workforce. As of the date of this report, no our employees and executives, we are 2018. Consistent with its commitment to executive officers identify as persons with Achieved committed to equality of opportunity and increasing the Board’s gender diversity, the disabilities, members of visible minorities 2 to the recruitment, retention, development policy was amended in 2021 to set a target 33% of our directors will be women following or Aboriginal peoples . One nominee for and promotion of qualified female and to have each gender comprise at least the 2021 Annual General Meeting of election in the April 2021 management male candidates, including at the highest 30% of the Board, and the Board intends Shareholders. proxy circular identifies as a visible minority. levels. Women represent the vast majority to maintain diversity above this threshold Dollarama is evaluating ways in which it of our in-store workforce and are also going forward. Following the election of the can better track and eventually enhance well-represented at the corporate level. In nine director nominees presented in the Racial and ethnic diversity its disclosure regarding the representation our distribution centre and warehousing April 2021 management proxy circular, the Our workforce is fully representative of these groups in its broader employee operations women are significantly under- Board will have three of seven independent of the diversity of the communities we population.

1) Contrary to the other gender representation percentages provided on this page, Board gender diversity is calculated as at June 9, 2021. 2) Designated groups as defined in the Employment Equity Act (Canada) DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 14

to capture additional pertinent issues in more detail such as human rights, diversity and inclusion, among others. Our goal is for the new Code to be broader in scope but DIRECT ECONOMIC VALUE CREATED also applicable from a practical standpoint BY DOLLARAMA’S ACTIVITIES in the day-to-day tasks of employees no matter their position, work environment Stakeholder Value Generated 2018 2020 or location. We want to ensure that they Customers Sales $3.5B $4.0B have the right tools at their disposal when dealing with issues of an ethical nature Value Distributed ENGAGING IN ETHICAL whether they relate to personal conduct BEHAVIOUR or business practices. We expect to launch Vendors and Products and 1 Dollarama is committed to conducting our new Code supported by an employee Service Providers Services Purchased $2.2B $2.5B its business in accordance with the engagement and communication campaign Employees Salaries, Wages highest ethical and legal standards in 2022. and Benefits Paid2 $459.1M $599.8M and our employees are required to make the same commitment. Our Code Employees, COVID-19 of Conduct and Ethics, applicable to COMMUNITY IMPACT Customers and Direct Communities Investments3 - $84.0M directors, management and employees, Every Dollarama store generates a positive provides guidelines for maintaining the economic and social impact in its community Shareholders Total Capital Returned integrity, reputation, honesty, objectivity by providing jobs and a convenient shopping to Shareholders $584.4M $141.8M and impartiality of Dollarama. It also destination for everyday essentials and provides for whistleblower communication seasonal products at affordable prices. Capital Providers Interest Paid to channels through which work-related From just one store in 1992 to over 1,350 Debtholders $45.6M $46.8M concerns and suspected violations of the at the end of 2020, we have grown to be Communities Taxes Paid $777.6M $876.2M Code can be reported on a confidential the go-to shopping destination for millions basis. of Canadians from all walks of life, a fact Communities Stewardship Fees Paid; reinforced by the COVID-19 pandemic. Ecofees Collected and Remitted $11.2M $13.6M Goal Launch revamped and more comprehensive From a corporate perspective, we are Code of Conduct and Ethics applicable to 1 Includes capital expenditures, merchandise and transportation costs, payments to a significant employer in Canada with landlords, utilities, recycling and waste management costs, maintenance costs, other directors, management and all employees a direct payroll of over 24,000 people. service provider and professional fees. in 2022 Our activities also create thousands of 2 Excludes COVID-19 related temporary wage increases and one-time bonus. New indirect jobs related to new store openings 3 COVID-19 direct costs include temporary wage increases and a one-time bonus, as well as additional in-store labour hours and other costs related to the implementation and and renovations, the manufacturing and execution of COVID-19 health and safety measures across our operations. distribution of our products, and the In 2021, Dollarama has undertaken to professional services engaged in support revamp and broaden the scope of its Code of our field and head office operations. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 15

EVERYDAY ESSENTIALS With an average of 6,000 active products AND MORE available at any given time, we constantly Dollarama offers a wide selection of adjust our all-year and seasonal product affordable everyday essentials at fixed mix, refreshing 25% to 30% annually price points as low as $0.82 and up to $4.00 to meet the needs of our customers. per item. Our quality product offering of While Dollarama has long been, and general merchandise, consumables and continues to be, a destination for general seasonal products is comprised of a mix merchandise and seasonal items, demand of recognized brand names and our own for consumables, such as cleaning and private labels. household, food, health and hygiene and pet products, increased in the context of the COVID-19 pandemic, as reflected in the slight change in merchandise mix Dollarama merchandise mix over the last two years. (based on retail value)

2018 A LIFE CYCLE APPROACH General TO PRODUCT COMPLIANCE merchandise Consumer product safety is our first and 43% foremost priority. We have strict processes Consumables and controls in place to monitor safety Over the last two years, Dollarama has This allows buyers to meet compliance 41% and quality—from product and vendor reshaped its approach to compliance by requirements while focusing on procuring Seasonal products selection, packaging and labelling creating a standalone team, independent products that offer customers high quality 16% reviews, shipping and storing practices, from the Procurement and Import groups, and outstanding value. to post-market product performance which oversees product and vendor monitoring. compliance in our extended supply chain, Goal and that reports into Legal Affairs. 2020 Restructuring of compliance program to Our commitment to product safety and increase efficiencies and oversight over General quality is embedded in the buying processes The Product Compliance team works product and vendor compliance merchandise and practices of our Procurement team closely with the Procurement team to Achieved 42% while product safety is actively monitored ensure buyers are trained on the latest Consumables by our growing Product Compliance team, technical, testing and/or licensing New director of compliance hired in 2019, 44% who is also tasked with staying abreast of requirements for the product categories supported by a growing team of dedicated product compliance specialists. Seasonal products evolving consumer product guidelines and under their responsibility. It also monitors 14% regulations, and ensuring that personnel of and enhances our processes, where all departments who play a role in the life required, to ensure their effectiveness and cycle of a product is trained on compliance improve them as requirements and best requirements. practices evolve. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 17

they may present health or safety-related program which covers all prohibited or Increased toy product testing hazards. In line with our risk-based restricted chemicals in an effort to further Over the last two years, our Product approach to managing product compliance, enhance compliance procedures. Compliance team has reviewed the we have tailored programs and monitoring certification and testing requirements procedures for specific categories such as Our Procurement and Product Compliance on a broad range of products and has toys and other children’s products, batteries teams are also focused on increasing also increased the number and frequency and electronics, certain health and beauty testing to eliminate the presence of of product testing, in line with one of our products and accessories, food, medical certain chemicals or heavy metals in 2018 goals. devices, over-the-counter drugs and natural our products even where there may be health products. All product categories are allowable limits. This includes eliminating Goal reviewed on a continual basis and in line with the risk of short-chain chlorinated Increase number and frequency of product evolving regulations and frameworks to build paraffins (SCCPs) being present in our testing on toys Ensuring that products meet specifications or enhance existing compliance programs plastic products. Used as lubricants and Achieved starts at manufacturing. We have a strict where relevant. coolants in metal cutting and forming and internal approval process for monitoring as plasticizers and flame retardants in Product testing has doubled since 2019. compliance in this regard, and regularly Chemical hazards mitigation strategies plastics, SCCPs are bioaccumulative and solicit third-party expertise to ensure Ensuring that toys do not contain considered toxic to aquatic organisms. that we are applying and meeting all of chemicals in excess of allowable limits, We are actively working with our product As products are offered for sale in new the requirements, and adapting as they in addition to meeting all other chemical manufacturers and vendors to achieve jurisdictions through our Dollarcity evolve. and heavy metals testing requirements, this goal. operations, we must ensure that they continues to be a top priority for the meet the standards required in all Product Compliance is responsible Product Compliance team. markets. In 2020, and ahead of Dollarcity’s for engaging with Health Canada, the Goals planned entry into the Peruvian market, Canadian Food Inspection Agency and Consumer products or toys which contain Eliminate the risk of short-chain a toy testing blitz was conducted to Environment Canada whether proactively, rubber, plastics or liquids are subject chlorinated paraffins (SCCPs) presence ensure compliance with the country’s in plastic products by requiring that to stay abreast of emerging regulations and to systematic testing and monitoring, manufacturers adopt alternative materials strict regulations on imported consumer guidelines or in the context of inspections including third-party testing, to monitor and techniques when possible, to minimize products. Less than 1% of the toys tested or product-related investigations. The the absence of, or compliance with the environmental impact of our plastics required further investigation for Canada Product Compliance team continues to allowable limits for, certain chemicals products and regulatory action was required in only take steps to enhance our processes or heavy metals which are considered New 0.2% of instances. and controls to ensure the products we hazardous for human health and/or for source meet or exceed evolving Canadian the environment and which are prohibited In 2021, the Product Compliance team’s regulations and our own specifications. or controlled by regulatory agencies. objective is to pursue further alignment Align Dollarama and Dollarcity compliance This includes monitoring the presence programs so that products systematically of compliance programs and practices of phthalates, which are often used in satisfy requirements in all distribution between Canada and Dollarcity’s growing A RISK-BASED APPROACH TO SAFETY plastics to soften and increase flexibility. markets list of countries of operation to streamline AND QUALITY MONITORING New processes, leverage best practices of Certain product categories carry higher The Product Compliance team aims to each organization and harmonize risk risks in the event of non-compliance, as further upgrade our risk management management approaches. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 18

us to ensure compliance ahead of the for a transaction to be completed at implementation of revised regulations check-out. and guidelines. Toys In 2021, the Product Compliance team will In 2018, Dollarama plastic toy products be implementing targeted product testing were the subject of a series of recalls due programs to increase and enhance testing to the presence of higher than allowable on electronics and products with batteries, phthalate levels. Following these recalls, flammability of textiles and BBQ brushes, we increased the number of products similar to its toy testing blitz in 2020. tested. Since then, we experienced only one toy recall in 2019, this time related to a potential choking hazard, and none in 2020. Goal Implement additional targeted product testing programs in line with Health OTC drugs and natural health products Canada’s ongoing consumer product In 2019, Dollarama was asked by a surveillance supplier and market authorization New holder to recall an over-the-counter acid reducer containing ranitidine following an industry-wide directive by Health Canada to stop distributing such drugs in Canada ROBUST PRODUCT RECALL while it assessed the risk of detected PROCEDURES AND SAFEGUARDS impurity. The sale of such products in Recognizing that it is not always possible Canada under new guidelines has since Food safety Other areas of focus to identify a specific product concern resumed. While we do not sell any refrigerated or Dollarama also proactively assesses upstream or to guarantee that all products short-shelf life/perishable goods, food is its product offering in line with Health are manufactured in accordance with Goal also a priority area in terms of product Canada’s ongoing consumer product specifications, Dollarama has standardized Increase access to recall information safety. A new regulatory framework surveillance program, under which recall procedures to ensure the timely and for consumers came into effect starting in 2019 with specific product categories may be efficient chain-wide removal of products Achieved the implementation of the Safe Food targeted from time to time. These activities from shelves, if and when required. for Canadians Act and Regulations. This provide an additional layer of verification. Recall information is systematically presented an opportunity to review and Recent industry-wide areas of focus by This process is supported by standard posted to Dollarama’s website since enhance Dollarama’s food control plan, Health Canada have included night light protocols for the secure disposal of the end of 2019. to ensure its successful transition to plugs, items with button batteries, metal products and reporting mechanisms to increased standards and new regulations. BBQ brushes, decorative lighting strings track recall completion and effectiveness. We have also developed enhanced training and USB chargers, to name a few. This As an added safety feature, through the In the context of COVID-19, demand for buyers but also throughout our supply helps focus our efforts on additional key point-of-sale system, we systematically for protective and sanitizing products, chain, to include product handling and product categories for which there may block the sale of any product subject to including products qualified as natural storing practices. have been industry-wide issues, allowing a regulatory recall, making it impossible health products (NHP), increased DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 19

significantly and this category became a holder resulted in a recall. The supplier commercial relationship with this supplier natural area of focus for Health Canada. was found to have Good Manufacturing and revisited its controls for the sourcing Goal In 2020, a hand sanitizer sourced from Practices violations by Health Canada. As of NHPs from Canadian license holders. Ensure that all private-label product packaging made of recyclable materials a Canadian supplier and NHP license a result, Dollarama immediately ended its To ensure greater oversight on such is clearly labelled products, in 2020 Dollarama also became an NHP and medical device license holder New and importer, allowing direct sourcing of these high-demand products at affordable RECALLS prices for customers. Dollarama also 2018 2019 2020 now systematically subjects Canadian Dollarama designs the packaging of a suppliers to similar NHP due diligence large number of products available in its Toy recalls requirements as for directly imported stores and sold under its private labels. # of recalls 5 1 0 goods. Dollarama is in the process of reviewing # of units 715,988 3,825 - all of its product packaging to ensure % of sales of category 0.3 < 0.1 - Food that products packaged in recyclable In the last three years, Dollarama recalled materials are clearly labelled and easily Food recalls two third-party branded food products, in identifiable by customers to encourage # of recalls 1 0 12 both cases due to an undeclared allergen the use of appropriate recycling streams. # of units 5,201 - 23,299 following a reported allergic reaction. This ongoing initiative will also better % of sales of category < 0.1 - < 0.1 In 2020, Dollarama was the subject of enable Dollarama to measure and track over 25 food investigations, whether as the percentage of its products packaged NHP/drug recalls part of the normal course of business of in recyclable materials. Dollarama # of recalls 0 1 13 federal or provincial level food inspection continues to privilege the use of recyclable # of units - n/a1 11,740 agencies or as a result of a product packaging for all product packaging it % of sales of category - n/a < 0.1 complaint. 100% of these were resolved designs where available and feasible. All other product recalls in a timely and satisfactory manner. Only # of recalls 0 0 14 one resulted in a regulatory recall. A significant proportion of the products # of units - - 34,968 we sell are national brands. Many of % of sales of category - - 0.4 the manufacturers we buy from have PRODUCT PACKAGING programs to ensure that their packaging Total recalls AND PRODUCT LIFECYCLE is minimized, made from recycled # of recalls 6 2 3 MANAGEMENT or renewable materials, and either Minimizing product packaging is a core recyclable, re-usable or compostable. principle of our cost-effective model. 1 Recall of acid reducer containing ranitidine - quantities recalled not representative 2 OKF brand Rice Drink Original recalled due to undeclared milk Product packaging also contributes directly Some of the national brand products 3 Dailyshield hand sanitizer recalled by Bio Life Sciences Corp. due to presence of methanol to efficient transportation. The more items we carry are third-party certified to 4 Mini outdoor light set recalled by Danson Décor Inc. due to electric shock hazard that can fit in an individual package, a case environmental and/or social sustainability or a pallet, and in a container, the fewer standards. Due to the fact that we sell containers or trucks need to be used. both our own private brands as well as DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 20

third-party and national brands, and that up to 30% of our product mix shifts any given year, measuring this information remains a challenge.

We continue to explore ways to enhance measurement and disclosure regarding our private-label brands, and to develop strategies in support of decreasing the environmental impact of our products and packaging.

PARTICIPATION IN STEWARDSHIP RESPONSIVE AND PROACTIVE PROGRAMS CUSTOMER SERVICE Dollarama is a registered Industry Although we have a “no refund, no Steward in all provinces that have put exchange” policy given the low price programs in place to help manage the points of the products we sell, this policy lifecycle of products after their sale. does not apply to products that do not Through these programs, we assume meet the reasonable quality standards a growing percentage of the net costs our customers have come to expect or to of curbside recycling according to the products deemed defective, despite quality type and quantity of materials we import controls in place. We have a dedicated Customer Service We regularly survey our customers to and/or sell. Ecofees or environmental department responsible for engaging better understand their needs and handling fees are collected, where with customers regarding their shopping shopping experience. Customer feedback is applicable, and remitted to industry- or product experience. Our Customer constantly taken into consideration in our led not-for-profit organizations that Service team is supported by the Product purchasing and merchandising practices operate regulated recycling programs Compliance team as part of the monitoring and contributes to our decision-making as across Canada to meet related recovery of the post-market performance of our we refresh our product offering each year. and recycling efforts. Our participation products. This ensures that qualified in such programs has increased over the personnel systematically follow-up last two years. In 2018, we contributed and evaluate all comments and claims over $11.2 million in stewardship and regarding product quality and performance, ecofees. In 2020, this number reached and investigate safety-related allegations. $13.6 million. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 21

RESPONSIBLE SOURCING We are committed to transacting only Our top ten vendors represent approximately Dollarama maintains a robust direct with reliable vendors who are responsibly 25% of total purchases, while our top 25 sourcing and import platform that has managing their operations from a social represent just over 40%, with no single been carefully developed over decades. We and environmental standpoint. Where vendor accounting for more than 4% of total consider our global sourcing capabilities possible, this includes intervention to exert purchases. While we import a substantial and supply chain to be a key competitive a positive influence. proportion of our offering directly from advantage, allowing Dollarama to provide China, our sourcing strategy blends consumers with compelling and always A diverse and flexible vendor base imported goods from over 25 countries affordable products in every aisle and We maintain records of all vendors, around the world. every season. whether for products sourced directly or remediation is not achieved in a timely and for which Dollarama is the importer Our procurement is largely effected on a or satisfactory manner. The diversity of our Although affordability is Dollarama’s trade- of record, or those sourced locally or from purchase order by purchase order basis, vendor base and our sourcing approach mark, our track record as a successful busi- other importers. In 2020, we sourced and not through long-term contracts. This also reduce supply chain dependencies or ness demonstrates that the focus of our products from approximately 1,350 distinct allows for more flexibility to terminate potential disruptions. sourcing strategy encompasses much more vendors. relationships if standards are not met and/ than the price of a given product. For exam- Monitoring social and environmental ple, the millions of Canadians who shop our supply chain risks stores every week have expectations about We offer a broad product assortment, with Our three-pronged vendor compliance program product safety and quality, and our Procure- each product category presenting different ment and Product Compliance teams know environmental and social risk profiles, these need to be met. Increasingly, we have 1 VENDOR CODE OF CONDUCT depending on its nature and country been expanding our oversight of our supply APPLICABLE TO ALL VENDORS of manufacture. Emerging social or chain to formally track social, environmental WITHOUT EXCEPTION environmental issues, whether regarding and governance issues that matter to our certain product categories or their shareholders, employees, customers, gov- country of manufacture, are monitored ernments and other stakeholders. by our Product Compliance and Legal Affairs teams. Since the publication of 2 VENDOR COMPLIANCE SURVEY our last report in 2019, the social and Today, we monitor our supply chain APPLICABLE TO TIER 1 VENDORS environmental risk profile of our overall closely through a three-pronged product offering has remained consistent. vendor compliance approach. It rests on our Vendor Code of A significant proportion of the directly Conduct, our Vendor Compliance sourced products we carry fall into the chemicals, rubber and plastic categories. Survey and our Social Audit SOCIAL AUDIT PROGRAM 3 These products, along with food, which also Program. Each reinforces and TARGETING TIER 1 represent an important proportion of our informs the other, allowing MANUFACTURER SITES purchases, are recognized as presenting for multiple opportunities for lower social risk profiles, based on oversight, engagement and action. factors such as manufacturing processes and origin. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 23

Based on the same criteria, electronics In conjunction with the publication of and apparel present the highest social this report, we launched an updated risk profiles among our product and enhanced Vendor Code in which we WORKPLACE AND ZERO TOLERANCE categories. These are primarily sourced expanded and further detailed vendor STANDARDS PROMOTED BY OUR from China. Together, these two categories engagement standards to ensure that ENHANCED VENDOR CODE represented less than 4% of our total our code comprehensively captures all procurement spending in 2020. of the human rights risks in our supply > Safe, sanitary and healthy work environment, including regular chain and to address key ESG issues that internal workplace safety training From an environmental standpoint, have emerged in the last few years. Our > Zero tolerance for forced and underage labour the product category with the highest updated code is aligned with the standards potential impact is food. Household set out in the Organisation for Economic > Zero tolerance for use of labour agencies who charge recruitment fees or illegally deduct fees from employee wages and personal care products also have Co-operation and Development (OECD) higher environmental risk profiles, but Guidelines for Multinational Enterprises, > Protection for young workers a large proportion of such products we which also draw on the United Nations > Fair disciplinary practices carry are name-brand products and not “Protect, Respect and Remedy” Framework > No discrimination manufactured for or directly sourced by and Guiding Principles on Business and Dollarama. Human Rights. > Reasonable working hours and overtime > Wages and benefits that at minimum meet legal requirements Forced labour, underage labour, unfair in country of operation SAFEGUARDING HUMAN RIGHTS disciplinary practices, discrimination Ensuring that all individuals are and other illegal labour practices are not treated with dignity and respect in our tolerated in our supply chain. We believe extended supply chain is paramount. every worker deserves a safe, sanitary All prospective vendors are thoroughly and healthy working environment, screened by Dollarama and must also reasonable working hours and overtime, certify compliance with our Vendor Code as well as wages and benefits that, at as a prerequisite for engaging in any minimum, meet local legal and regulatory commercial relationship with us. requirements.

Our expectations regarding the safe- All of Dollarama’s vendors have certified guarding of human rights and reasonable compliance with our former Vendor working conditions are clearly outlined Code, and we expect the full adoption of in our Vendor Code. These expectations our enhanced code to be completed by apply to our vendors, their own supply October 2021. Vendors will also now be chain structures and their commercial required to re-certify compliance with the partners, whether or not the vendor is enhanced code at minimum every year, the product manufacturer, which must be from every two years previously. made transparent to Dollarama. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 24

While a majority of the products available we require all vendors to maintain as a result of their participation in the in Dollarcity stores are sourced through complete and accurate records and Vendor Compliance Survey, our Product Dollarama and subject to our vendor grant Dollarama or a designated agent Compliance team further adjusts their compliance program, Dollarcity also of Dollarama with reasonable access risk scores and evaluates the need for transacts directly with with select to facilities, records and workers for any next steps. This may include requests vendors, local and foreign. Our objective inspection or audit purposes, and to work for more information, the scheduling of is for Dollarcity to adopt and implement with Dollarama or its designated agent to a third-party audit or corrective action if an equivalent Vendor Code applicable to resolve issues. a notable deficiency has been identified. its direct vendors, which are primarily No further action is required from located in Central and Latin American Since 2019, our growing Product Compliance manufacturers with recent social audit countries, by the end of 2022. Bribery and team has been enhancing our visibility on, reports that meet our expectations until corruption are areas of particular focus in and engagement with, manufacturers from a new social audit must be conducted as Tier 1 manufacturers targeted for social these markets and are already addressed whom we procure goods directly, defined per our Social Audit Program’s schedule, audits are selected based on a number via a compliance program implemented as Tier 1 manufacturers, regarding their which is at minimum every three years. of factors, including the nature of the by Dollarcity. social and environmental practices and, product, country of manufacture, annual where needed, exert a positive influence. purchasing volumes, survey results, Vendor engagement on labour and Based on a number of critical factors, A FOCUSED SOCIAL AUDIT PROGRAM their risk score and/or the availability human rights issues Tier 1 manufacturers are given a risk As an integral part of our longstanding and status of a recently conducted social In addition to outlining our expectations score to establish their requirement to product safety monitoring efforts, audit by an accredited third party deemed regarding labour and working conditions, automatically participate or not in our Dollarama buyers and accredited third- equivalent by Dollarama. For example, Social Audit Program. party auditors regularly conduct in-person all Tier 1 manufacturers who represent visits to vendor facilities as we require a significant volume of purchases and As a first step, an important proportion specific audits as needed for product who operate in China must be subject Goals Comprehensive update of Vendor Code of Tier 1 vendors, selected based on safety compliance. Such audits provide to regular social audits by an accredited factors such as country of manufacture opportunities to review the social and third-party organization. Achieved and annual procurement volumes, environmental practices of vendors, but must complete our mandatory Vendor it is not their focus. Dollarama’s Social Enhanced Vendor Code required for all new purchase orders effective June 2021. Compliance Survey. The survey’s objective Audit Program, implemented in 2019 All existing vendors expected to confirm is to validate the existence of a current and supported and informed by our Goal compliance with new Vendor Code social audit conducted by, or a certification Vendor Code and Vendor Compliance Roll out Social Audit Program developed in 2019 by October 2021. issued by, an accredited third party that Survey, is independent from our ongoing validates or certifies workplace policies product quality and safety driven audits. In progress Roll-out of equivalent Vendor Code to and practices that meet the expectations Administered by our Product Compliance Dollarcity direct suppliers by 2023 outlined in our Vendor Code. team under the direction of Legal Affairs, Social Audit Program roll-out began in late calendar 2019 as planned, but COVID-19 New it is primarily focused on monitoring social interrupted the pace of third-party audits in Based on a careful review of the docu- and environmental practices of our Tier 1 2020. Audits resumed in early 2021. mentation provided by Tier 1 vendors manufacturer sites. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 25

Whether as a result of the Vendor Compliance Compliance Survey did so by the end of 2020 in-person audits and third-party social Survey or a third-party audit, we will work while the roll-out of remaining required social audits can validate conditions through with our vendors to develop corrective action audits was delayed, in part due to COVID-19. onsite inspections. WHISTLEBLOWER plans if required to support them in their PROCEDURE efforts to improve their practices. We are Effective in 2021, all new Tier 1 vendors We provide our vendors with the opportunity committed to exerting a positive influence are subject to the Vendor Compliance to apply corrective action in a timely Dollarama has several channels where we can, but we will not hesitate Survey as new purchase orders are made manner to meet our expectations and available for questions or to immediately terminate a commercial and to ensure the ongoing maintenance we support their efforts to improve their concerns regarding its vendor relationship with a vendor in case of gross of our vendor compliance program. We performance. As with social issues and compliance program as well as a negligence or unlawful behaviour, including will continue to engage with vendors to as a matter of policy, we will not engage whistleblower channel allowing violations of standards that are subject to ensure that their manufacturing sites are with a vendor who is unable or unwilling any person who believes that a a zero tolerance policy as per the terms of the subject of regular social audits, and will to implement corrective action to achieve violation of the Vendor Code has the Vendor Code, or if a vendor is unwilling continue to carefully review and monitor environmental compliance in a timely or occurred to report the relevant or unable to remediate a situation of non- their performance and take action where satisfactory manner. information confidentially. compliance within a reasonable timeframe. required. General inquiries:

Goals [email protected] ENVIRONMENTAL RESPONSIBILITY Ensure that required Tier 1 manufacturers are the subject of accredited social audits at Vendor engagement standards Climate change is a global issue and Confidential inquiries: that are subject to a zero tolerance minimum every three years our three-pronged approach to vendor [email protected] policy by Dollarama include compliance is also designed to monitor New the prohibition against forced environmental performance. We strive to We value the integrity of our labour and underage labour as work with vendors who use resources, supply chain and are committed well as import, sanctions and material and energy efficiently and Enhance disclosure on Tier 1 manufacturer to fostering transparency social audit performance anti-corruption and anti-bribery responsibly, and who work to minimize and trust. Dollarama’s Legal compliance. the adverse impact of their activities on New Affairs team administers these the environment. channels and is responsible for objectively managing and Our minimum expectation is that our investigating any reported Vendor compliance program vendors meet local environmental laws incidents and their timely onboarding and regulations. Practices that result in resolution. Over the last two years, the focus of the the illegal discharge of effluents, toxic Product Compliance team has been on substances or waste are strictly prohibited completing the onboarding of qualifying, under the terms of the Vendor Code. existing Tier 1 vendors to our three-pronged vendor compliance program to reach a Documentation gathering through our satisfactory level of visibility on their social and Vendor Compliance Survey enables us to environmental practices. All existing Tier 1 examine compliance of Tier 1 vendors and vendors required to participate in our Vendor identify any concerns, while both our own DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 26

MANAGING OUR ENVIRONMENTAL grows. We are also focused on promoting consumption—mainly electricity—by our AN INCREASED FOCUS ON CLIMATE IMPACT reuse, improving recycling and diversion store network across Canada and our CHANGE RISKS AND OPPORTUNITIES In order to manage our operations and rates as well as reducing waste across our corporate offices, distribution centre Climate change poses risks to our planet, to resources responsibly from an environmental operations. and warehouses located in the Montreal people and to businesses, both from a physical standpoint, we are continuously looking area. As a result, our direct and indirect and future regulatory standpoint. Governance to improve the energy efficiency of our Nearly all of our Scope 1 and 2 greenhouse emissions are limited compared to more of climate-related risks and opportunities stores and other facilities as our footprint gas (GHG) emissions result from energy energy-intensive industries. is now formally embedded in our Audit Committee’s charter as part of its ongoing Our retail footprint in square footage enterprise risk assessment processes. increased by over 11% from 2018 to 2020, while total GHG emissions increased by In order to better understand and evaluate SOURCES OF GHG EMISSIONS approximately 10%. the broader implications of climate change, including associated physical and transition 1 Metric Tons of CO2e 2018 2020 All of our electricity consumption is risks and opportunities, we are undertaking grid electricity purchased from utility to develop a roadmap and approach to Scope 1 - Direct companies. Approximately 82% of align with the recommendations of the Company-owned vehicles 1,070 (1%) 1,054 (1%) our grid electricity is from non-GHG Task Force on Climate-related Financial emitting energy sources and 54% from Disclosures (TCFD) in the future. As part Building natural gas consumption renewable energy sources. Over half of of our response to climate change, we for heating purposes2 47,553 (61%) 53,878 (63%) our renewable energy consumption is will assess potential impacts of various hydropower in the Province of Quebec scenarios on our business and related risk Scope 2 - Indirect where our corporate offices, logistics mitigation and adaptation measures, while Building energy consumption from operations and approximately 30% of our also looking for new opportunities. Our purchased electricity2 28,928 (38%) 30,654 (36%) stores are located. ultimate goal is to ensure Dollarama can adapt and continue to thrive under various

1 Carbon dioxide equivalent (CO2e) is a measure used to compare the emissions from various GHG emissions produced through the climate change scenarios. This roadmap greenhouse gases based upon their global warming potential. manufacturing and transportation of our will allow us to enhance climate change- 2 From 2018 to 2020, Dollarama’s retail footprint in square footage increased 11%. goods by third parties are considered related disclosures as necessary. Scope 3 emissions. At this time, we do not measure the full breadth of Scope 3 EMISSIONS BY ACTIVITY emissions on an annual basis but we Goals continue to take steps to improve our Enhance visibility and measurement capability of Scope 3 emissions Metric Tons of CO2e visibility on the carbon impact of our downstream and upstream activities. New Retail store operations 72,965 (85%) This includes third-party product Centralized logistics and transportation, product manufacturing head office operations 12,621 (15%) in our extended supply chain and business Develop TCFD alignment roadmap travel. New DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 28

GAINING EFFICIENCIES AS WE GROW in 2021. To date, nearly 45% of the chain Reducing energy consumption in our is equipped with interior LED lighting. expanding store network is a key area GREEN MEANS of opportunity. We constantly look to LED fixtures are also a standard specifi- GLOW! incorporate energy saving specifications cation for our iconic exterior store signs. as we open new stores and renovate or We expect all exterior neon store signs Many years ago, the National Building Code of Canada began to retrofit existing locations, with higher controlled and managed by Dollarama move away from the traditional red colored exit signs that say ‘Exit’ energy efficiency often translating into across Canada to have been upgraded to or ‘Sortie’, in favour of green exit signs, which use the international cost savings. Lighting along with heating, LED by the end of 2021. ‘Running Man’ pictogram, a change that is increasingly reflected ventilation and air-conditioning (HVAC) across our operations. Importantly, no matter the colour of an together represent over 90% of the energy Optimizing in-store heating exit sign, it must remain visible at all times – especially when consumption in our stores and represent and energy management the lights go out. Dollarama’s Store Maintenance team has been significant efficiency target areas. HVAC represent 50% of energy consump- running a pilot program with a sign that does not require batteries, tion in stores and we have been actively electricity or lightbulbs to illuminate – it simply glows in the dark! working on finding ways to better manage With 6 to 7 of these ‘Running Man’ signs in each of our 1,356 Goal and optimize our energy use. stores and counting, the impact would not be Retrofit all store light fixtures and exterior negligeable. To illustrate, converting signs neon signage to LED lighting In 2019, we undertook a project to upgrade in 1,400 stores would result in a 72 tonne In progress existing energy management systems reduction of GHG emissions – demonstrating to benefit from the latest technologies that when it comes to improving our energy 45% of the chain is equipped with interior efficiency, every idea is worth exploring! LED lighting. in order to improve our visibility and control, and ultimately to lower our energy consumption. Such systems help extend Energy-efficient LED lighting the lifespan of various HVAC equipment We committed several years ago to and enable us to curb energy use when systematically eliminating the use of least required. We began by targeting of between 15% and 25% of our total in- ballasts and to prioritize the use of more stores where HVAC systems are not store energy consumption is anticipated Goals energy-efficient LED lighting in all of landlord-controlled and for which we are in all locations where we have installed Upgrade in-store energy management systems across the network to increase our stores across Canada. Since 2016, responsible, which represent about 50% of HVAC controls. energy efficiency ballast-less fixtures and LED technology our total footprint. We consulted subject- In progress are standard specifications for all new matter experts in order to find the best Based on the expected effectiveness of stores, for store relocations and when solution to achieve tangible improvements this initiative, we have increased its scope Installation of new energy management major renovations are made to existing in our energy consumption and costs. to include exterior signage controls in system completed in over 250 stores where stores. We also have an ongoing multi- addition to HVAC where applicable. We Dollarama controls HVAC. Remaining stores year retrofit program aimed at gradually We began to roll-out our new energy are also evaluating the implementation of to be converted in 2021. upgrading all stores opened prior to management systems in early 2020. HVAC controls or an equivalent technology 2017 to LED lighting even if they do not By the end of the year, over 250 stores in stores where HVAC is landlord- Upgrade energy management systems in require other renovations. 280 stores were had been upgraded and we expect to controlled. landlord-controlled stores retrofitted in 2019 and 2020. We expect to complete the roll-out of this system to New retrofit an additional 250 existing stores eligible stores by mid-2021. A reduction DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 29

limit consumption within the building and the site uses a water retention system to capture rainwater as well as an artesian well to source groundwater for its irrigation system.

Since 2020, Dollarama has completed the conversion of all of its logistics operations (warehouses and distribution centre) to LED lighting to further reduce energy Our objective is to favour rail wherever consumption. possible in order to limit our reliance on long haul truck transportation, which The forklift and transpallet fleet across our has resulted in a significant reduction warehousing operations uses opportunity in the GHG emissions produced by our charging, a system that enables increased third-party transportation partners over flexibility for charging, resulting in the years. Today, nearly all merchandise higher productivity and longer lifespan that is shipped over long distances from of batteries. Started in 2016, over 65% of Montreal to other major city centres the fleet is now utilizing this more efficient west of Ontario and beyond, and to select EFFICIENT WAREHOUSING In all cases, we followed many of the method. Maritimes locations, moves by rail. From AND DISTRIBUTION guidelines of the Leadership in Energy & these terminals, merchandise is then Lighting and HVAC needs represent Environmental Design (LEED) assessment Goal delivered by fuel-saving optimized truck a significant portion of the energy system, to optimize energy efficiency and Convert all warehouses and the distribution routes to area stores. For illustration consumption in our warehousing and indoor environmental quality. centre to LED lighting purposes, a single unit train keeps more distribution facilities. Additional energy Achieved than 300 trucks off public roads and is also consumed to power mechanical When expanding our distribution centre, is four times more fuel-efficient than equipment such as conveyors and mobile we also made energy efficiency upgrades All logistics facilities equipped with LED trucking. By this measure, the use of logistics fleet charging stations. to the existing portion of the facility, lighting since 2020. rail resulted in the elimination of over including to heating and ventilation 8,600 trailer-truck movements by As we build, expand or renovate facilities, systems, in addition to the installation of Dollarama in 2020. we invest to improve energy performance LED fixtures in both the new and existing Minimizing reliance on highway and efficiency, while ensuring that portions of the facility. transportation We also work closely with rail carriers we provide employees with a bright, Merchandise moves daily from our vendors’ to optimize the use of containers to clean and consistently temperate work Our newest and largest warehouse, facilities to our warehouses, distribution ensure that they do not travel empty. environment. In 2018, we completed the built in 2016, is fully equipped with LED centre and stores across Canada. Imported As containers from the West coast are expansion of our distribution centre using lighting, energy saving motion sensors and merchandise primarily arrives through the emptied in Montreal, we ensure that a the same sustainable energy principles as radiant heating. We utilize state-of-the-art Port of Vancouver, and we ship products by maximum of these same containers are for our 500,000-square foot warehouse destratification fans to control air quality rail to our centralized logistics operations returned full with new merchandise ready construction project completed in and ambient temperature. Regarding in the Montreal area prior to redistributing for re-distribution to our stores. 2016, and our head office built in 2007. water management, electronic controls across our store network. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 30

Our back store operations are constantly information or material and proprietary Diversion rates adapting to recycling streams in different corporate information. Metric tons unless otherwise indicated municipalities across Canada. This includes the implementation of various We do not store customer data such Calendar Calendar plastic, aluminum, as well as organics as cardholder information and other 2019 2020 recycling streams. personally identifiable information on 31,391 34,057 our in-store systems. For online sales, Note that unlike grocery stores and retailers we record certain personally identifiable Total diverted Total diverted SUCCESSFUL REUSE that stock short-shelf life or refrigerated information through our transactional from stores from stores Reuse and waste reduction are deeply products, our commercial food waste is website, such as names and addresses. rooted in our operations since inception. 1,410 1,872 minimal due to the nature of the products Payment card information is not stored Every day, we divert waste from going to we sell and their high turnover rate. by Dollarama and is handled by third- landfill by finding appropriate uses for Total diverted Total diverted party processors. The same applies to our from logistics from logistics existing materials. For example, we re- recently launched mobile application. operations operations use cardboard boxes to transport products A CONTINUED FOCUS ON DATA to our stores as well as to fulfill online PRIVACY AND CYBERSECURITY orders, avoiding the purchase of new 87,404 98,674 Information technology systems are packaging for our operations. Landfill Landfill fundamental for the efficient functioning reduction in reduction in of our operations and we take cyber This same ‘reuse’ principle applies to cubic yards cubic yards and data security very seriously. wooden pallets in our warehouses and Dollarama is absolutely committed to distribution centre for the shipment of maintaining the privacy and security of merchandise to individual stores. In 2020, Our distribution centre and warehouses its customers’ personal data as well as its we continued to prioritize reusing and are equipped with compacting and dual own proprietary information. Our robust repairing pallets to minimize new pallet baling technology and we are gradually information technology department and At the corporate level, we collect and maintain purchases. We also purchase recycled rolling out cardboard and plastic dual dedicated cybersecurity team, with the proprietary and confidential information pallets through third-party providers to balers in stores. In 2019, we installed support of third-party experts, continue related to our business and affairs, including avoid introducing new pallets into the 60 balers in stores, bringing the total to work daily to ensure the integrity of our our suppliers and employees. This data is system as much as possible. number of stores with this technology IT infrastructure and systems. stored and processed both at onsite facilities to nearly 260. The changing dynamics in and at third-party facilities. The COVID-19 the global recycling industry impacted Our annual investment and focus on pandemic tested our IT infrastructure, INCREASING RECYCLING the return on investment of this project systems integrity is commensurate providing comfort in its robustness and AND WASTE DIVERSION RATES resulting in a moderation in the annual with the mission critical nature of this opportunity for enhancements. One area of Increasing cardboard and plastic installation rate of dual balers in stores infrastructure, the importance of which focus in the last two years has been raising recycling is an ongoing priority across to approximately 10 in 2020. We are also only resonated further as the COVID-19 awareness among employees and suppliers our operations. With the support of third- focusing on improving the efficiency of pandemic forced an important proportion regarding cybersecurity threats such as party service providers, we continue to recycling collection across our store of our corporate office employees to work social engineering and phishing. We also develop new initiatives aimed at reducing network to find ways to consolidate from home. To date, Dollarama has never ensure that our cybersecurity and related waste, maximizing the reuse of material collection and maximize incentives for experienced a data breach resulting in business continuity plans remain adequate and recycling more within our facilities. third-party bale and pallet collectors. the disclosure of personally identifiable and tested via crisis simulations. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 31

ABOUT THIS REPORT

In our 2021 ESG Report, we provide a comprehensive overview of our approach to ESG issues, which are both relevant to our business and our stakeholders, and we have aligned our reporting with the SASB Standards relevant to our industry sectors. We also provide an update on our progress since our last issued report, and have introduced new, measurable goals. Goal tracking and our SASB Index can be found in the ‘ESG Appendices’ section of this report. CONTACT INFORMATION While this report provides readers with a comprehensive overview of a variety of ESG issues relevant to Dollarama, as a publicly-traded Canadian company, any issues deemed material to our business are addressed in our continuous Legal Affairs, Regulatory and Compliance disclosure documents. These are available at www.sedar.com under our company profile and in the Investor Relations Josée Kouri, Senior Vice President, section of our corporate website at www.dollarama.com. As such, this report should be read in conjunction with our Legal Affairs and Corporate Secretary regulatory filings. [email protected]

The data contained in this report and in the SASB Index covers all areas of our business that are 100% owned and operated, and reflect the most current annual data available. Dollarama also has a 50.1% equity interest in Latin Investor Relations American value retailer Dollarcity. While reference is made to Dollarcity in this report, its activities and operations are J.P. Towner, Chief Financial Officer not included in the non-financial data disclosed in this report or in the SASB Index. [email protected]

References to a specific year are meant to designate the corresponding Dollarama fiscal year. For example, reference Whistleblower Channel (confidential) to 2020 refers to the 12-month fiscal period beginning February 2, 2020 and ending January 31, 2021 as designated [email protected] in our regulatory filings as Fiscal 2021. With the exception of financial information from our annual audited financial statements, the data contained in this report is unaudited.

Please note that certain images used in this report were taken before COVID-19 health and safety measures were implemented across our operations or at different times during the COVID-19 pandemic. As a result, they may not reflect public health measures in place at the time of publication of this report. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 32

Achieved TRACKING OUR GOALS AND INITIATIVES In progress New

PRIORITY ISSUE GOAL STATUS COMMENTS

OUR PEOPLE

Talent attraction, Increase promotions from store level to field Enrollment in DMiT program more than doubled since development and retention management via DMiT program inception, with half of candidates promoted to DM positions since 2018.

Complete roll-out of GPS training in stores in 2021

Training application program for store associates to be developed and launched by 2022

Health and safety Revamp and launch new Employee Revamp completed in 2019; Rolled out on an ad-hoc Assistance Program basis throughout the pandemic in 2020, formal launch company-wide in 2021.

Reduce frequency and severity of lost-time injuries

Fair labour practices / Maintain 30% female gender diversity on Board of 33% of our directors will be women following the 2021 Diversity and inclusion Directors Annual General Meeting of Shareholders.

Launch revamped and more comprehensive Code of Conduct and Ethics applicable to directors, management and all employees in 2022

OUR PRODUCTS

Product safety and quality Restructuring of compliance program to increase New director of compliance hired in 2019, supported by a efficiencies and oversight over product and vendor growing team of dedicated product compliance specialists. compliance

Increase access to recall information Recall information is systematically posted to Dollarama’s for consumers website since the end of 2019.

Increase number and frequency of product Product testing has doubled since 2019. testing on toys

Eliminate the risk of short-chain chlorinated paraffins (SCCPs) presence in plastic products by requiring that manufacturers adopt alternative materials and techniques when possible, to minimize the environmental impact of our plastics products DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 33

Achieved TRACKING OUR GOALS AND INITIATIVES (CONT’D) In progress New

PRIORITY ISSUE GOAL STATUS COMMENTS

Product safety and quality (Cont’d) Align Dollarama and Dollarcity compliance programs so that products systematically satisfy requirements in all distribution markets

Implement additional targeted product testing programs in line with Health Canada’s ongoing consumer product surveillance

Product packaging and lifecycle Ensure that all private-label product packaging made management of recyclable materials is clearly labelled

OUR SUPPLY CHAIN

Responsible sourcing Comprehensive update of Vendor Code Enhanced Vendor Code required for all new purchase orders effective June 2021. All existing vendors expected to confirm compliance with new Vendor Code by October 2021.

Roll-out of equivalent Vendor Code to Dollarcity direct suppliers by 2023

Fair labour practices / Roll out Social Audit Program developed in 2019 Social Audit Program roll-out began in late calendar 2019 Human rights as planned, but COVID-19 interrupted the pace of third- party audits in 2020. Audits resumed in early 2021.

Ensure that required Tier 1 manufacturers are the subject of accredited social audits at minimum every three years

Achieved TRACKING OUR GOALS AND INITIATIVES (CONT’D) In progress New

PRIORITY ISSUE GOAL STATUS COMMENTS

OUR OPERATIONS

Climate change Enhance visibility and measurement capability of Scope 3 emissions

Develop TCFD alignment roadmap

Energy management Convert all warehouses and the distribution All logistics facilities equipped with LED lighting centre to LED lighting since 2020.

Retrofit all store light fixtures and exterior 45% of the chain is equipped with interior neon signage to LED lighting LED lighting.

Upgrade in-store energy management systems across Installation of new energy management system completed the network to increase energy efficiency in over 250 stores where Dollarama controls HVAC. Remaining stores to be converted in 2021.

SASB INDEX

This report has been prepared in alignment with the Multiline and Specialty Retailers & Distributors industry standard, which SASB has identified as Dollarama’s primary Sustainable Industry Classification System® (SICS®) industry, as well as select indicators from other SASB standards relevant to our business (Food Retailers & Distributors; Toys & Sporting Goods; Household & Personal Products; Apparel, Accessories & Footwear; and Drug Retailers). All data provided pertains to Dollarama’s business as a whole and not to a particular sector of activity or product category, and excludes Dollarcity. Information provided is for the fiscal year ended January 31, 2021 (“2020”) unless otherwise indicated. In some cases, indicators have been included in this index but the information has not yet been aggregated or quantified or is not disclosed by Dollarama at this time. Indicators suggested by a given standard not deemed applicable were excluded. Dollarama is committed to continuing to improve the quality of its ESG disclosure.

TOPIC ACCOUNTING METRIC CATEGORY CODE DOLLARAMA DATA SOURCE/MORE INFORMATION

MULTILINE AND SPECIALITY RETAILERS & DISTRIBUTORS

Energy Management (1) Total energy consumed Quantitative CG-MR-130a.1 (1) 85,586 metric tons of CO2e Sources of GHG emissions, p. 27 in Retail & Distribution At this time, this information is not calculated (2) Percentage grid electricity in gigajoules. (3) Percentage renewable (2) 36% (3) This information has not been aggregated or quantified by Dollarama at this time. Data Security Description of approach to Discussion and CG-MR-230a.1 A continued focus on data privacy identifying and addressing data Analysis and cybersecurity, p. 30 security risks Data Security (1) Number of data breaches Quantitative CG-MR-230a.2 (1) In 2019 and 2020, Dollarama did not experience A continued focus on data privacy any material breaches of its data. and cybersecurity, p. 30 (2) Percentage involving personally identifiable (2) 0% information (PII) (3) None (3) Number of customers affected Labor Practices (1) Average hourly wage Quantitative CG-MR-310a.1 (1) Store employees: $15.08 per hour Attracting and retaining the best talent, of in-store, warehouse (excluding premiums and benefits) p. 9 and distribution centre Logistics employees (i.e. warehouse and employees by region distribution centre employees): $22.60 per hour (excluding premiums and benefits) (2) Percentage of in-store, warehouse and distribution (2) Store employees: 39% centre employees earning Logistics employees: 0% minimum wage by region Labor Practices (1) Voluntary turnover rate for Quantitative CG-MR-310a.2 (1) This information is not disclosed by Dollarama. Committed to being a responsible in-store employees retailer and building a sustainable (2) This information is not disclosed by Dollarama. business, p. 3 (2) Involuntary turnover rate for in-store employees Attracting and retaining the best talent, p. 8 DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 36

SASB INDEX (CONT’D)

TOPIC ACCOUNTING METRIC CATEGORY CODE DOLLARAMA DATA SOURCE/MORE INFORMATION

Labor Practices Total amount of monetary losses Quantitative CG-MR-310a.3 This information is not disclosed by Dollarama. as a result of legal proceedings associated with labor law violations Workforce Diversity & Percentage of gender Quantitative CG-MR-330a.1 (1) Management: A diverse and inclusive workplace, p. 13 Inclusion and racial/ethnic group 40% Women representation for 60% Men (1) management and For the purposes of this SASB Index, Dollarama has defined “management” as its executive officers, (2) all other employees senior vice-presidents, vice-presidents, senior directors, directors, regional district managers and district managers. The gender representation disclosure provided on p. 13 reflects a broader definition of “management” than described above. (2) All other employees: 75% Women 25% Men Racial/ethnic group representation among both management and all other employees has not been aggregated or quantified by Dollarama at this time. Workforce Diversity & Total amount of monetary losses Quantitative CG-MR-330a.2 This information is not disclosed by Dollarama. Inclusion as a result of legal proceedings associated with employment discrimination Product Sourcing, Revenue from products third- Quantitative CG-MR-410a.1 This information is not disclosed by Dollarama. Packaging & Marketing party certified to environmental and/or social sustainability standards Product Sourcing, Discussion of processes to Discussion and CG-MR-410a.2 A risk-based approach to safety and Packaging & Marketing assess and manage risks and/ Analysis quality monitoring, p. 17 or hazards associated with chemicals in products Product Sourcing, Discussion of strategies to Discussion and CG-MR-410a.3 Product packaging and product lifecycle Packaging & Marketing reduce the environmental Analysis management, p. 19 impact of packaging Increasing recycling and waste diversion rates, p. 30 DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 37

SASB INDEX (CONT’D)

TOPIC ACCOUNTING METRIC CATEGORY CODE DOLLARAMA DATA SOURCE/MORE INFORMATION

FOOD RETAILERS & DISTRIBUTORS

Food Safety (1) Number of recalls Quantitative FB-FR-250a.2 (1) 2019: None Robust product recall procedures and 2020: 1 safeguards, pp. 18-19 (2) Number of units recalled (2) 2019: None 2020: 23,299 units (3) Percentage of units recalled that are private-label (3) 2019: There were no food recalls in 2019. products 2020: 0% Product Labeling Number of incidents of non- Quantitative FB-FR-270a.1 2019: None resulting in a recall Robust product recall procedures and & Marketing compliance with industry or safeguards, pp. 18-19 2020: 1 incident resulting in a recall regulatory labeling and/or Recalls, p. 19 marketing codes Product Labeling Total amount of monetary losses Quantitative FB-FR-270a.2 This information is not disclosed by Dollarama. & Marketing as a result of legal proceedings associated with marketing and/ or labeling practices Labor Practices Percentage of active workforce Quantitative FB-FR-310a.2 0% 2021 Annual Information Form, p. 17 covered under collective bargaining agreements Management of Discussion of strategy to Discussion and FB-FR-430a.3 Responsible sourcing, p. 22 Environmental manage environmental and Analysis Safeguarding human rights, pp. 23-24 & Social Impacts social risks within the supply in the Supply Chain chain A focused social audit program, p. 24 Environmental responsibility, p. 25 TOYS & SPORTING GOODS

Chemical & Safety Number of (1) recalls Quantitative CG-TS-250a.1 (1) 2019: 1 Robust product recall procedures and Hazards of Products 2020: None safeguards, pp. 18-19 Number of (2) total units recalled (2) 2019: 3,825 units Recalls, p. 19 2020: There were no toy recalls in 2020. Chemical & Safety Total amount of monetary losses Quantitative CG-TS-250a.3 This information is not disclosed by Dollarama. Hazards of Products as a result of legal proceedings associated with product safety Chemical & Safety Discussion of processes to Discussion and CG-TS-250a.4 A risk-based approach to safety and Hazards of Products assess and manage risks and/ Analysis quality monitoring, p. 17 or hazards associated with chemicals in products DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 38

SASB INDEX (CONT’D)

TOPIC ACCOUNTING METRIC CATEGORY CODE DOLLARAMA DATA SOURCE/MORE INFORMATION

HOUSEHOLD & PERSONAL PRODUCTS

Packaging Lifecycle (1) Total weight of packaging Quantitative CG-HP-410a.1 (1) This data is currently calculated only in certain Product packaging and product lifecycle Management provinces in the context of our participation in management, pp. 19-20 (2) Percentage of packaging stewardship programs. made from recycled and/or Participation in stewardship programs, renewable materials (2) This information has not been aggregated or p. 20 quantified by Dollarama at this time. (3) Percentage of packaging that Increasing recycling and waste diversion is recyclable, reusable, and/ (3) This data is currently calculated only in certain rates, p. 30 or compostable provinces in the context of our participation in stewardship programs. APPAREL, ACCESSORIES & FOOTWEAR

Labor Conditions in the (1) Percentage of Tier 1 supplier Quantitative CG-AA-430b.1 Dollarama’s classification system currently A focused social audit program, p. 24 Supply Chain facilities that have been identifies all vendors from whom it procures audited to a labor code of goods directly – manufacturers and intermediaries conduct – as Tier 1 vendors. Dollarama is currently in the process of segmenting manufacturers and (2) Percentage of supplier intermediaries in order to focus its Social Audit facilities beyond Tier 1 that Program on Tier 1 manufacturers. have been audited to a labor code of conduct In 2019 and 2020, 152 audit reports produced by third-party auditors were received and reviewed (3) Percentage of total audits by Dollarama. conducted by a third-party auditor Labor Conditions in the Priority non-conformance rate Quantitative CG-AA-430b.2 Further to a third-party social audit conducted at Supply Chain and associated corrective action the end of 2020, Dollarama ended its commercial rate for suppliers’ labor code of relationship with a supplier at the beginning of 2021 conduct audits as a result of the inability of the supplier to execute a corrective action plan within the requested timeframe. Labor Conditions in the (1) Description of the greatest Discussion and CG-AA-430b.3 Responsible sourcing, p. 22 Supply Chain labor risks in the supply Analysis Safeguarding human rights, pp. 23-24 chain A focused social audit program, pp. 24-25 (2) Description of the greatest environmental, health, and Environmental responsibility, p. 25 safety risks in the supply chain DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 39

SASB INDEX (CONT’D)

TOPIC ACCOUNTING METRIC CATEGORY CODE DOLLARAMA DATA SOURCE/MORE INFORMATION

DRUG RETAILERS

Drug Supply (1) Number of drug recalls Quantitative HC-DR-250a.2 (1) 2019: 1 drug recall Robust product recall procedures and Chain Integrity issued 2020: 1 natural health product recall safeguards, pp. 18-19 (2) Total units recalled (2) 2019: Quantities recalled not representative Recalls, p. 19 2020: 11,740 units (3) Percentage for private-label products (3) 2019: 100% 2020: 0%

ACTIVITY METRIC CATEGORY CODE DOLLARAMA DATA SOURCE/MORE INFORMATION

MULTILINE AND SPECIALITY RETAILERS & DISTRIBUTORS

Number of: (1) retail locations and (2) distribution centres Quantitative CG-MR-000.A (1) 1,356 retail locations Providing affordable, everyday essentials and more, p. 2 (2) 6 warehouses and 1 distribution centre 2021 Annual Information Form, pp. 3, 9, 15 and 16 Total area of: (1) retail space and (2) distribution centres Quantitative CG-MR-000.B (1) Retail space: 14,000,779 square feet Providing affordable, everyday essentials and more, p. 2 (2) Warehouses: 1,668,230 square feet Distribution centre: 495,686 square feet 2021 Annual Information Form, p. 15 APPAREL, ACCESSORIES & FOOTWEAR

Number of (1) Tier 1 suppliers and (2) suppliers beyond Tier 1 Quantitative CG-AA-000.A Dollarama’s classification system currently Safeguarding human rights, pp. 23-24 identifies all vendors from whom it procures goods directly – manufacturers and intermediaries – as Tier 1 vendors. Dollarama is currently in the process of segmenting manufacturers and intermediaries in order to focus its Social Audit Program on Tier 1 manufacturers. DOLLARAMA ESG REPORT ABOUT US | ESG GOVERNANCE | OUR PEOPLE | OUR PRODUCTS | OUR SUPPLY CHAIN | OUR OPERATIONS | ADDITIONAL INFORMATION | ESG APPENDICES 40

FORWARD-LOOKING INFORMATION

This report contains certain forward-looking statements about our current and future plans, expectations, intentions, results, levels of activity, performance, goals or achievements or other future events or developments. Forward-looking statements are based on information currently available to management and on estimates and assumptions made based on factors that management believes are appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause actual results, levels of activity, performance, achievements, future events or developments to differ materially from those expressed or implied by the forward-looking statements.

These factors include the inability to sustain our assortment and the replenishment of merchandise, the increase in the cost or a disruption in the flow of imported goods, the failure to maintain brand image and reputation, the market acceptance of private brands, the competition in the retail industry, general economic conditions, the departure of senior executives, the failure to attract and retain quality employees, the disruption in information technology systems, the inability to protect systems against cyber-attacks, adverse weather, pandemic or epidemic outbreaks, earthquakes and other natural disasters, climate change, geopolitical events and political unrest in foreign countries, product liability claims and product recalls, litigation, regulatory and environmental compliance, and shareholder activism. This is not a complete list of the risk factors that could affect Dollarama; however, these factors should be considered carefully. For more exhaustive information on risk factors, please refer to Dollarama’s Management’s Discussion and Analysis (MD&A) for the year ended January 31, 2021, and to subsequent quarterly MD&As for changes and updates to these risk factors, if any. These documents are available at www.sedar.com and www.dollarama.com.

As a result, readers should not place undue reliance on forward-looking statements made in this report. Furthermore, unless otherwise stated, the forward-looking statements contained in this report are made as at the date of this report, and management has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.