Josh discusses how brands are now expected to adopt the principles of their customers, and why that is driving leading companies to invest in technology to drive sustainability and environmental stewardship.
Today we’ll hear from Joshua Witte, Director of Energy, Sustainability, and ESG at Dollar Tree Stores. Dollar Tree is a Fortune 150 company and one of the nation’s leading value retailers. They offer a wide selection of products at extremely competitive prices. At Dollar Tree, Joshua brings his experience in facilities/construction management and consulting, store and fixture design to drive sustainability in the brand.
Guest Bio:
Josh is a facilities, Sustainability and Construction/Design professional with over 25 years experience in the industry. He has a wide variety of experience in facilities/construction management and consulting, store and fixture design, sustainability, building operations, customer/vendor relations, multi-million dollar project management, merchandising, commercial and industrial sales, real estate asset management and contract negotiation.
Guest Quote:
“We call it the three Ps in sustainability: people, planet, profit. And if you can blend all three of those together, it becomes table stakes for any organization that wants to be serious and continue moving forward.”
Timestamps:
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[00:00:00] Welcome to Elevating Brick and Mortar, a podcast about how operations and facilities drive brand performance. Now more than ever, brands are expected to adopt the principles of their customers. Sustainability and environmental stewardship are some of the biggest goals companies are working towards. Today, we'll hear from Joshua Witte, Director of Energy, Sustainability and ESG at Dollar Tree stores. He shares how brands can prepare for sustainability success as well as how to invest in the right people, technology and practices. Now here's your host industry and FM technology thought leader, and chief business development officer has service channel Sid Shetty, along with our guest Joshua W
[00:00:39] Sid Shetty: itte.
[00:00:39] Hello everyone. Welcome to season three of elevating brick and mortar. Thank you for joining us. I'm here today with Joshua Witte, director of Energy, Sustainability, and ESG at Dollar Tree. Josh, welcome to the show.
[00:00:52] Joshua Witte: Thanks, Sid. Glad to be here.
[00:00:54] Sid Shetty: Thank you for being here. So Josh, you lead one of the hottest and most relevant functions that exists today. Can you share some details around what you do?
[00:01:03] Joshua Witte: Certainly. So, you know, I've been in role at Dollar Tree for about two and a half years now. Uh, this role that I'm in did not exist before my tenure at the company. It was a brand new role created to serve a new need, which was sustainability in the retail environment for Dollar Tree. Uh, previous to this, I was with Ross Stores and had a couple other stops, uh, prior to that. Uh, this was the right place at the right time where they, they had a pretty unique need and unique role that, uh, needed some, some leadership and some guidance and, uh, I, luckily, I, I, I fit the criteria, so, um, here I am at Dollar Tree, you know, two and a half years later, where we're building out a, a full sustainability slash ESG program for one of the largest retails in, in the country, if not the world, uh, prior, prior to me being here, even very recently to my being on board at Dollar Tree, there really was no sustainability focus with Dollar Tree. I, I would, I've, I've joked in the past that the only thing green about Dollar Tree in the past was its logo. And that's probably not too far from the truth. Um, you know, there were, there were the things like that I like to call random acts of sustainability, which are, you know, the easy things to do, like going after LEDs for exterior signage and interior lamps and things like that, high efficiency HVAC, but there was no real process around it.
[00:02:17] There was no strategy. And it was really just kind of grasping at shiny pennies. Well now, you know, with myself on board with some other team members and some other executive leadership, we're crafting out a long term sustainability goal for the entire organization, uh, which will, which will make us, uh, best in class within our space within retail.
[00:02:35] Sid Shetty: But Josh, like, what was your journey like getting into sustainability? I mean, you've been in the space for a long time. Um, and you've had different roles. And like you mentioned, I mean, this role was created at Dollar Tree. So can you just share some details around that journey as well? Because I'm sure a lot of folks in our audience are wondering, how does one get to the role that you have?
[00:02:59] Joshua Witte: You know, it, it really was a slow evolution over time, Sid. Uh, way, way back when I first started in retail, and this goes back over 25 years, which is a really strange thing to say. I never thought I'd be able to say that quarter century in the business. Um, it was at JCPenney, and that's right when, uh, the lead.
[00:03:19] Uh, program was first developed and retailers were jumping on with developing, you know, new lead stores, lead gold, lead platinum. And that was really my first, uh, first step into what would become sustainability. Back then, sustainability wasn't even really, it wasn't like a, the buzzword it is now.
[00:03:35] You said sustainability and it really didn't resonate with anyone. So that was my, my first taste within that, within that space. And, you know, over time, I think it ebbed and flowed a little bit. Uh, you know, my next career stops, whether I was at Samsung or at Ross Stores, uh, it was always kind of in the background, but it really didn't start to gain momentum until, until the last couple of years, especially with the move with activist investors really leading the charge for investing in sustainable companies and codifying, you know, with the greenhouse gas protocols and the Paris Accords and all that stuff that wraps into the whole climate conversation, uh, you know, then it started really showing up in corporates and, you know, Dollar Tree is no different.
[00:04:14] We were very far behind the curve as far as development for a sort of decades. Reaches far behind the curve as compared to some of our peers, like your targets or Walmarts. But it really is, it's evolved to a place where its table stakes with an organization, that you have to have this level of expertise and know if you have any sort of background in that where you know, I was fortunate enough where I was able to do design and construction and facilities over the course of my career energy management.
[00:04:35] And all kind of, you know, blended together in a package that you can, uh, you can market yourself as a sustainability expert as long as you have some of that, uh, some of that background and some of that, that, that credential behind you.
[00:04:46] Sid Shetty: Dollar Tree is a really popular retailer with over 16, 000 locations around the US, right? So
[00:04:54] Joshua Witte: That's correct. 16, 540 ish as of last Tuesday.
[00:04:59] Sid Shetty: Love it, love it.
[00:05:01] Joshua Witte: That could probably be more today.
[00:05:02] Sid Shetty: yeah, what are the brands that are covered under the, you know, umbrella brand of Dollar Tree? And why do you think, you know, these, this brand is so popular?
[00:05:14] Joshua Witte: Well, we have three different brands. So, we have the legacy Dollar Tree, which is, as we were founded as Dollar Tree almost, uh, just over 70 years ago. Uh, in 2016, we purchased Family Dollar outright. So, that, we went from 4, 000 stores overnight to double the size of the fleet with the purchase of Family Dollar.
[00:05:36] So, that really extended our brand influence and our presence in the marketplace. And then, not too long after that we, uh, we, we purchased a small, uh, factory. Uh, retailer up in Canada and rebranded it Dollar Tree Canada.
[00:05:48] And really, you know, we're in that value retail space where if you walk into one of our stores, especially on the Dollar Tree side, we're every, well, it's 1. 25 now, so you can call us a 1. 25 tree or a five quarter tree, whatever, I've heard a couple other ones too. Um, it, it really is amazing at what our, our merchants and our buying team can get for that, for that amount, I mean, it just boggles my mind when I see all the wide assortment and, you know, we, it's, we liken it to the kind of the thrill of a treasure hunt in a way in that we don't, we don't hold stock in our stock rooms. We are constantly turning merchandise. So it's really, you know, it's a matter of discovery almost when you walk into a dollar tree store.
[00:06:23] It's like, what do we have, uh, stocked out today. What's, what's in stock and what's going away quickly and the, and the customer really likes that and, you know, we hit a lot of really strong niches as well with, with seasonal decor and seasonal merchandise, uh, arts and crafts, party supplies. And even food, you know, our most popular SKU is actually chicken nuggets, if you believe that.
[00:06:46] Yeah, always, it's been our most popular SKU for years now. And, you know, Family Dollar is a bit of a different flavor. It has multiple price points. It's got a bit of a different demographic. And it really specializes in rural and urban areas serving, uh, you know, servicing underserved communities and communities that are, uh, You know, not the, uh, uh, just, just real troubled community sometimes where we go in as a retailer and offer, you know, price conscious goods and staples that, that people need in those, in those areas. So, it's really a nice, a nice mix of a, of a suburban slash urban rural, uh, type of retailing strategy that kind of checks all those boxes and, and really creates value for our customer.
[00:07:24] Sid Shetty: Right. I mean, so when you think about the kind of experience that you're trying to deliver to your customer, what is your North star? And how does your team, um, Or rather the facilities and sustainability, like all the different teams that contribute to that experience. Like, how do you align yourselves to that not star,
[00:07:43] Joshua Witte: So that is, the North Star is evolving. For many years in the past, uh, the, the sentiment was that we are a value chain, a dollar store chain, and that we have to maintain our facilities accordingly, which unfortunately led to, uh, deteriorating conditions and just not a strong investment in the real estate portfolio.
[00:08:03] But North Star is changing now. We have new leadership that, uh, Value the customer experience, you know, creating a safe and healthy shopping environment for our customers and our associates as well. And that, you know, the new standard now is, we call it GOLD. G O L D, all caps, and that means grand opening look every day.
[00:08:22] And that's really the experience we're striving to align with. It can be challenging, especially from a budgetary perspective, because often the wants of the operators outweigh the budgetary restrictions that we have here at corporate. But that's what we're going for. It's a gold experience. It's an elevated experience within the space.
[00:08:40] And we're really pushing that from a culture standpoint and from an internal management standpoint.
[00:08:45] Sid Shetty: That's really interesting, right? Because, you know, when I think of Dollar Tree, I think of value and convenience. And at some point to what you just said, like there's a balance between, you know, the kind of experience you want to deliver your cut to your customer. And your budget, like how do you, how do you have that discussion with operations? How do you essentially achieve that balance where you still have that gold experience, um, but it's not impacting the value that you drive to the consumer.
[00:09:14] Joshua Witte: You know, it's a very delicate balance, Sid. It's, uh, sometimes it's hard conversations with the operators. It's about making, prioritizing and making choices. Uh, we all, but, you know, on the other hand, we're also taking a market by market approach where we look at historically underserved and underdeveloped markets and invest in those stores. And then monitor, we look at the sales lift pre and post. Refreshes, as we call them, and you know, there is an impact, it just continues to build the case that proper investment in facilities does see, uh, you know, a sales impact, and you know, in the past, it's been tough to tell that story, but when you can, you know, demonstrate this with concrete data, uh, and tell that story, it really, that carries an impact and allows you to build upon that value and, you know, keep moving forward with that approach.
[00:10:03] Thank you.
[00:10:04] Sid Shetty: Yeah. I mean, that's spot on. Um, you know, you've been in the space for a very long time, like you mentioned, 25 years, right?
[00:10:10] Joshua Witte: Almost 30 now, which is even weirder to say.
[00:10:14] Sid Shetty: that's amazing. That's amazing.
[00:10:15] Joshua Witte: Yeah.
[00:10:16] Sid Shetty: So, so putting Dollar Tree aside for a second, right? I mean, you've been in the facilities world as well. Um, what are your thoughts on how brick and mortar stores, you know, can leverage their physical presence, um, to create unique and memorable experiences that online shopping just, just cannot replicate?
[00:10:36] Like, do you think we do that well?
[00:10:38] Joshua Witte: I think we're getting better at it. You know, there was, there was that paradigm within the industry that, you know, online and Amazon was going to replace, replace brick and mortar, and they've been, you know, people have been ringing that alarm bell for years, but I think the inverse has proven true, especially post pandemic where people enjoy going into a store, people enjoy the shopping experience, and the better you can make that for your customers and your associates, you know, top, top of mind is always safety and health.
[00:11:05] And you have to have a safe, a safe space and a healthy space. But, you know, making that, that type of investment only makes it more aesthetically pleasing and makes it a better environment to shop in. And, you know, when you hit, when you, when you check all those boxes, you have a happy customer that's going to want to stay in your store longer.
[00:11:18] It's going to increase your cart sizes and it's going to show up as more dollar signs at the register at the end of the day.
[00:11:24] Sid Shetty: Yeah, and, you know, part of what a consumer expects from, you know, retailers is consistency, right? No matter where you are in the country, whether you're in Boise, Idaho or in Dallas, Texas, if you walk into a particular brand's location. You expect the consistent experience, whatever that might be, um, how do you ensure that consistency across 16, 000 locations? Like what, what does Dollar Tree do well?
[00:11:56] Joshua Witte: I'll say it's still a work in progress, to be quite honest. For many years, we did not have unified brand standards. And it was very apparent, especially after the acquisition of Family Dollar, you know, that company had been so under invested for so long, there were a lot of very, very deteriorated and tired buildings out there that TLC in order to bring it up to any sort of reasonable standard. Um, and for a while, the standard, the standard was, you know, as little investment as we can make just to make sure that we keep the doors open and keep the place, you know, somewhat, somewhat pleasing environment. That was really it. It was just the bare minimum. Now with our new standard, the gold standard, that's changing, you know.
[00:12:38] It's more focused on aesthetics. It's, it's focused on things that we didn't focus before. You know, the appearance of the, of the merchandise in the aisles, the, how do the fixtures look? What does the floor look like? What's the rest of the environment? Is it properly lit? You know, is it consistently cool? We, you know, is it rodent free? You know, these are the things that we, that were tolerated in the past as just the cost of doing business. Well, now we're not willing to, to not pay that cost to make sure that we do have a, a top notch experience for our customers and associates.
[00:13:08] We're we're moving towards a, a better place from a, from a store environment perspective for sure.
[00:13:12] Sid Shetty: Do you think COVID had an impact on that? You know, just in general, like across the industry, I mean, because, because post COVID consumer expectations, you know, are at an absolute high. And I think associates expect and have higher expectations of the brands they serve too, right?
[00:13:29] Joshua Witte: I, I would say that's spot on Sid, and I would, I would say we, we've heard it even more from our associates than from our customers. And I think at, on the macro scale, You know, the pandemic definitely changed a person's perspective on what is safe, what is healthy, what is a pleasing store environment.
[00:13:43] That expectation has been raised, and I, those conversations have happened, and those actions are being taken across the entire retail industry. But we, in particular, at Dollar Tree, we really heard, started hearing from our associates, where, you know, I referenced that culture of tolerance that was in the past.
[00:13:56] That is gone. There is zero tolerance for any sort of heating, heating or cooling issue, any sort of rodent issue, anything that can jeopardize. The experience within the box. It is top of mind from the hourly associate ringing up the register all the way up to the office of the CEO. Uh, it is, there's, there's just no more tolerance for that to, to skimp on the experience and, you know, do something that could compromise safety, health, or well being of anyone in one of our boxes.
[00:14:26] Sid Shetty: And the brands that want longevity, um, are going to have,
[00:14:30] Joshua Witte: they listen to that. They, they, exactly. You adapt or die. And, uh, we did not adapt for a very long time and, and we're only now getting on the right side of that curve. Which is exciting.
[00:14:40] Sid Shetty: That's great. So let's dive into sustainability. I mean, Dollar Tree released its sustainability report recently and, um, We'd love to share with our audience about what your sustainability goals are, um, and then, you know, we'd love to kind of talk a little bit more about what does the industry need to do to get to where we want to be,
[00:15:04] Joshua Witte: Sure. So our sustainability goals have evolved very quickly over the last couple of years. Uh, I referenced that I was the first dedicated sustainability resource within the company. Prior to my joining, uh, Dollar Tree had released its first ever sustainability report. Uh, they'd never released one before.
[00:15:21] They had released some social governance type of stuff, uh, but nothing strictly, uh, sustainability focused and ESG focused like the one we had released a couple years past. And our initial goal was really, was really quite modest from an overall, you know, if you look at it at the macro scale, it was, it was a intensity based reduction of our, uh, carbon footprint, a 25 percent GHG reduction over the course of 10 years from 2021 to 2031, which is not nothing.
[00:15:49] Uh, but it is, it's, you know, it's not hard to get to, especially being an intensity based goal. Uh, nothing really around scope 3 emissions other than some vague supplier commitments. Um, it was very, uh, as I like to, you know, the technical term would be a little squishy. It was a little squishy. Um, this past year, you know, with, with myself on board now, and then we brought in a new Chief Sustainability Officer to really help drive this at the, at the governance level, at the corporate level.
[00:16:14] Uh, we are, we have committed to commit to science based targets. And that means we are going to go absolute, or not, I'm sorry, net zero energy and waste. Uh, we're aligning with the Paris Accords on this, so by 2050, we will be a net zero company for scopes 1, 2, and 3 of all emissions. Uh, it's going to be pretty challenging.
[00:16:34] Scientific based targets, SBTI, science based targets are very robust and require, uh, absolute reductions. Not intensity based, so it's no, you know, the interesting thing that, the story we're telling now is that, you know, we're growing so fast and we're adding 000 stores a year, so as we align with science based targets, not only do we have to offset the growth, but we still have to make a required amount percentage reduction in our overall footprint regardless of growth.
[00:17:00] So that 1, 000 stores, I gotta, I, we have to figure out a way to offset that in addition to maintaining our, our continuous stair step down towards that net zero goal. So it's a very challenging goal. Uh, but, you know, it's, it's exciting, and it's, um, it's good, it's really, no one in the value space is, is, has committed to that sort of robust goal, at least not yet, and I think it's coming, but, you know, we're really the first ones within the value retail space to, to make net zero commitments like that.
[00:17:26] Sid Shetty: Let's double click a little bit there, right, for um, for our audience. What does it mean to be net zero?
[00:17:35] Joshua Witte: So net zero is, the key phrase there is net. So it's not an absolute zero goal, which means we have absolutely zero carbon footprint across the enterprise. A net zero means that Your carbon emissions are offset to zero. So it's, as you approach 100%, it becomes increasingly difficult to bridge that final mile, that final gap.
[00:17:56] So within a net zero framework, you can reduce your footprint by say 90 to 95 percent and still be considered net zero. Uh, and that's across all emissions factors. So, whatever we're building, all of our products, all those emissions are either offset through other types of efficiency measures, through renewables.
[00:18:15] Through the purchase of carbon offsets, uh, renewable energy credits, all those things combined to give a, a net zero carbon footprint growth over
[00:18:23] Sid Shetty: And, and as it relates to, you know, GHG or, or greenhouse gas emissions, um, can you explain what scope one, scope two, and scope three is?
[00:18:34] Joshua Witte: Certainly, probably should have started with that. So, scope 1, are your different emissions types or factors that go into calculating your carbon footprint. Scope 1 is direct emissions, so that's... Emissions generated by any of your directly owned company assets. So for us, it's, you know, backup generators at distribution centers.
[00:18:55] The central plant emissions from corporate office. Emissions from any company owned vehicles. Fugitive emissions from refrigeration, from refrigerated systems, which we have a lot of refrigeration in our fleet. So those are all your scope one emissions.
[00:19:09] Sid Shetty: So the things that you create, basically.
[00:19:11] Joshua Witte: exactly. Things you are directly responsible for.
[00:19:14] Scope 2 is indirect emissions generated as a result of the electricity and natural gas that you purchase.
[00:19:20] Sid Shetty: Like your consumption.
[00:19:22] Joshua Witte: yeah, your consumption, basically. Uh, and that's, you know, across the enterprise, whether that's DC, corporate, and at the store level. Scope 3 is the broadest category, and that is your entire value chain. Uh, that is the waste generated within your enterprise, the... Uh, the carbon footprint of the products that are manufactured and sold, the cost of the, uh, the transportation of those goods, uh, which for us is, uh, it's huge. I mean, we are, we're, we have a global footprint on this from a supply chain perspective. Most of our... Merchandise is manufactured in China, comes across the ocean on, in, in containers, comes into the ports and then is transported, you know, to our distribution center network and then across the country. So it's a very, very heavy footprint. It is almost 90 percent of our entire carbon footprint is Scope 3.
[00:20:08] And it is also the most difficult to really wrap your arms around it and come with a plan. Um, not a lot of, there aren't a lot, a whole lot of companies that really have Scope 3 figured out. There are 15 different categories of Scope 3 emissions. So it's, it is a. A tough nut to crack, so to speak. And that's, that's an evolving process as well.
[00:20:25] Trying to figure out exactly how do we address that footprint. It's gonna be very challenging.
[00:20:30] Sid Shetty: As you speak to your peers and like, as you're seeing, like, uh, companies come out with goals in the market, are, are companies focused on scope one and then scope two and then scope three, or do they actually, you know, have goals that, um, commit, you know, a reduction in all three?
[00:20:53] Joshua Witte: Uh, I would say the ones that commit to reductions or net zero in all three is the exception rather than the rule. Scope one and two is within your control. It's easily impacted, especially scope two, with efficiency projects, you know, high efficiency, hvac, LEDs, things like that. Um, Scope 3 is just, it's just really, really difficult and really, really tricky, especially the larger your organization gets and the bigger your global footprint becomes very, very difficult, but there are, you know, there are companies out there, you know, Ikea is one that comes to mind, for instance, that are committing to net zero Scope 3, which is a huge commitment, very challenging, but, you know, with those, with those types of organizations leading the way, it's, it'll drag us through in its wake and eventually it's going to become mandatory anyway.
[00:21:40] Um, I don't know. There was a bill recently passed in California SB 2 53. The, the Corporate Climate Accounting Accountability Act, uh, which is anyone making over a billion dollars that happens to do business in California, is gonna have to disclose scope through scopes one, two, and three emissions, and show your progress on that as and as to how it relates to your, to your climate risk mitigation plan.
[00:22:02] That's. Uh, you know, pending legal challenges, of course, but I, I'm sure that's going to go forward and the SEC will likely follow suit with that. They've already got scope one and two reporting requirements coming down the pike. They were going to walk back scope three. I think this move by California will embolden the SEC and that will probably follow suit pretty quickly.
[00:22:18] So, we're moving to a place where it's, it's, you, you can't get around it. You're going to have to address it one way or another.
[00:22:24] Sid Shetty: Yeah. It's just a matter of time. It's companies are going to have to really invest in the right people, the right talent and the
[00:22:31] Joshua Witte: The right technologies, I mean, it's all, it's all, it's all connected.
[00:22:34] Sid Shetty: when you, when you think about your consumers and investors, right, I think consumers and investors today are demanding that their companies do this. It's not, I mean, companies. Should be doing the right thing, but they're also doing it because, um, of course, there's regulatory requirements now coming down, you know, down the pipe, but also consumers want their brands to stand for something and, and, and at least make an effort to be more, um, environmentally conscious.
[00:23:05] Right.
[00:23:06] Joshua Witte: 100%. I would say for us, for Dollar Tree, this started off as, this whole sustainability journey we're on, started off as from the investors, from the shareholders. They, um, several funds, and you'll see this, there's, I referenced activist investors earlier, we're actually at a point in the industry where there's a backlash against ESG investing. Where, you know, there's, there's bills being sponsored to, uh, force companies or, or, uh, organizations to not take ESG into, into, uh, investment. into account when, when investing in different types of funds. Um, but this was an investor move. Uh, there was a, uh, several, several shareholders, organizations got together and forced some change on our board of directors and made ESG a priority. Uh, so I, that's where a lot of retailers, especially publicly traded retailers, are seeing a lot of those pressures. I think that's becoming more common. Historically our consumers, uh, we did not give them much credit for being environmentally minded, uh, you know, typically, especially on the family dollar side when we're in urban or very rural, uh, settings, that's ESG is typically not top of mind with our average customer, but to your point, Sid, it, it, it's, it's becoming more and more important, especially as You know, millennia millenniums and Gen Y and Gen Z get older and start shopping.
[00:24:22] That is real for the, for the younger generations. The next generation of consumers that is top of mind. They wanna shop at a, at a, at a store that they know is doing its part, that is being environmentally conscious, that is even socially conscious being a good neighbor. 'cause that's really what a, what a clean and healthy store is.
[00:24:38] It's, it's, it's good. It's good. Not only is it good for the environment, it's good for, for, for the neighborhood that it's in. And it's, it, it, you know, that they, they connect those dots in, in that manner as well. And, They'll talk with their dollars if you, uh, if you're resistant to that.
[00:24:52] Sid Shetty: Do you, uh, show impact and success within your organization? Like, how do you know what you're doing is working?
[00:25:02] Joshua Witte: Well, it's easy on the efficiency side because you can, it's very, it's very data focused and driven. And of course, you can show tangible results by doing the right thing, as we like to say, on the efficiency side of things. But some of the software impacts, there's a bit of, there's a marketing piece to this. There's a story you have to tell, and that's part of... You know, an overall ESG effort is also, you have to tell the story, and you have to get that out there, and you have to generate awareness around it. Because the more awareness you generate, the more buy in you're going to get at any level of the company. And historically, we've been very, very bad about engaging in any sort of, you know, publicity, any sort of marketing of this sort of stuff. But now, you know, we're flipping that script as well, and we're talking about this. Because the more we talk about it, the more engaged people are going to get. You know, people out, out, out in our stores, in our neighborhoods that we're in, they're going to see that, they're going to hear about this, and you know, it's favorable impressions, I think, is, you know, impressions, social media impressions and things like that, or is, you know, that's, that's, we're, that's helped us focus on this even, even more so now.
[00:26:04] Sid Shetty: Mean, you're someone who, um, is well respected in the industry and, you know, is on panels and you also are an evangelist, right?
[00:26:15] Joshua Witte: That's absolutely spot on. Uh, you know, there, you won't find a lot of, uh, sustainability professionals that, uh, Don't mind getting up and banging the pulpit, so to speak, every now and again to aggressively tell that story. And you do have to evangelize it. It becomes a passion for you at the end of the day. If you can't get passionate about it, you're not going to generate that passion in others. And that's all part of the journey as well, is sharing that passion and bringing others along for the ride.
[00:26:42] Sid Shetty: And do you see when you go out there and meet your peers and go to events that... There are folks in your position and other companies, are they as empowered to do, um, what they need to do to actually make progress? Or do you feel like they're filling a seat and there's a lot of greenwashing going on? Cause that's another challenge too, right?
[00:27:03] Joshua Witte: It is, it is another challenge and it's been, it's been well reported over the last couple of years. Several high priority, high, high, high publicity greenwashing stories have been out there. Uh, I, I think that, that's changing as well. Uh, most of the peers that I, that I meet out there in the industry, they, they are empowered and their organizations are fully behind them.
[00:27:22] Sid Shetty: That's
[00:27:23] Joshua Witte: It's evolving, I would say, and it's, it's, it varies widely from company to company, but I, I do think that, that is a sea change that's coming. You know, the more, especially on the investor side of things, the shareholder relations piece is going to drive a lot of this. The compliance piece is going to drive a lot of this. So, you know, organizations are realizing you have to empower your sustainability teams and your energy teams to work together with a facilities team to make this happen. Because we're going have to.
[00:27:48] to
[00:27:49] Sid Shetty: What you do impacts you know, I would say almost every department, right? Every department in some way or form, um, whether it is through, um, action directly, or it is through, uh, their partners or their vendors, or, or just like in terms of how they position the brand. They're impacted by what you're doing. How do you get a big enough pedestal to go within your own company as well and talk about the initiatives and why they matter and take everyone on that journey? Cause that's usually a big challenge, right? Sometimes,
[00:28:24] Joshua Witte: It really is.
[00:28:25] Sid Shetty: Yeah, like you could, you could, you could affect one or two departments, but here we're talking about an initiative that you really have to go across all functions.
[00:28:34] Joshua Witte: absolutely right. And it's, it's all about stakeholder bapping and engagement. It's like the very first thing you do is you need to identify who are the key stakeholders within each business unit that you need to engage with. And then you need to educate them. And some of them are more savvy than others. Some of them will be more resistant than others. Uh, but you have to, you have to share that knowledge. You have to educate them. And you have to, and you got to make sure that, that they're aligned with. With your goals and, and, and you know what the company goals are and it's you, you're right. It is almost every single major business unit.
[00:29:06] You got finance, you got risk, you got communications, you got shareholder relations, facilities, construction, design. I mean it all in the sustainability multiverse that, that touches everything. It really does and you need to make sure that you have that firmly mapped out and that, that, that you are engaged in the lockstep with all those groups. Or else you're just going to start hitting roadblocks, and it's going to generate frustration, and trust me, I've been there too.
[00:29:30] Sid Shetty: What, what lessons would you share with others who are starting on the journey that you'd say, you know, there are certain pitfalls to avoid now that you've kind of, done this for a while.
[00:29:41] Joshua Witte: You know, in addition to stakeholder engagement and knowing who those key people are, you know, find out, do a materiality assessment. You know, find out what's important to the associates at large. Uh, we had never done that at Dollar Tree, and, you know, once you engage the broader, Uh, the broader culture of the organization and find out what's important to, to these folks. You can incorporate that into your strategy and your story and it, it just makes building buy, generating buy in for what you're doing that much easier. But you have to engage. You really do have to engage your stakeholders, engage your associates and start, start telling that story.
[00:30:16] Sid Shetty: For folks who are contemplating getting into, uh, a role that involves sustainability or ESG as a whole, would you say words of encouragement and to go for it? What would you think is the, you know, the longevity of this role as you look into the future?
[00:30:35] Joshua Witte: It's an interesting question, Sid. If you would have asked me 10 years ago, I would have said, nah, this is just a fad. It's not going anywhere. Um, I'm completely on the opposite side of the coin from that, you know, not. Not entirely from selfish reasons, uh, but I just, I just see this as such a cornerstone of, of, of how a business is going to have to operate. There's, there's a regulatory component, there's just being a good corporate citizen component and, you know, you blend those together. We call it the three Ps in sustainability, people, planet, profit. And if you can, you blend all three of those together and it, it, it, again, it becomes table stakes for any organization that wants to, wants to be serious and, and continue moving forward.
[00:31:13] Thank you.
[00:31:15] Sid Shetty: So, so Josh, let's, let's talk about the future a little bit, right? When you look at where we are today, um, you know, the world of retail is changing. I mean, now, and we just spoke about, you know, the standards that are expected from brands. Um, I think the same thing holds true for the kind of experiences that consumers expect, right? They, consumers want you to stand for something. They want us to do the right thing, but they also want to have a great experience. Like, there's a reason why they would get up from their couch and walk into your location. And then when they're walking into the location, there's choices, there's optionality, there's, there's five other brands competing for their mind space on, in that very shopping mall or in that very, um, you know, parking lot. So what do you see as the future, um, you know, as it relates to the physical experience that, that brands are able to offer consumers and. Is there anything that you're, that you're seeing out there that excites you and, and you think will stick?
[00:32:18] Joshua Witte: Well, the experience is going to continue to be key. I mean, there's no getting away from that. And the better brand experience you can put together for the customer, the more you're going to bring in the doors. I think the technology. is going to drive a lot of this. It's going to drive the experience. You know, from a, just from a maintenance of the store perspective, the, the, the automation and the application, the implications and applications of artificial intelligence and what that can do to, to generate a better brand experience, uh, I, I think we're just really scratching the surface of that.
[00:32:51] And, and that's going to be key, and not only an experience, you know, the, the customer experience, but the associate experience, and You know, the overall aesthetics of the store, I think technology, you layer in the AI and what that can do, uh, from predictive analytics to, to, you know, managing IAQ to, to, you know, just even on the digital side of things. It's, it's, we're just, we're just starting to evolve that.
[00:33:17] Sid Shetty: right, we're just scratching the surface.
[00:33:19] Joshua Witte: Exactly.
[00:33:20] Sid Shetty: I mean, there's this massive convergence of the physical and the digital, right? I mean, I think there's a term that you coined before, it's called FIGITAL, right? Uh, you know,
[00:33:29] Joshua Witte: there we go, yeah.
[00:33:30] Sid Shetty: Yeah, yeah, I mean, essentially like consumers today, um, are already interacting, you know, with the digital in your locations, right? They're on their phone, they're doing something that I, when I, when I'm in the store, I'm looking up, you know, competitive pricing, or I'm looking at, you know, competitive products. And, and so if you make it easier for the consumer to get educated on whatever they're looking to buy in the store, I think you elevate that experience and now, there's a whole new kind of dimension to buying, right, that a consumer will experience and that'll keep them coming back.
[00:34:08] Joshua Witte: Yeah, absolutely. And you know, it's, it's interesting with, with Dollar Tree Family Dollar, the digital piece of the experience was not something we paid attention to for many, many years. And we are now starting to do so. We've completely revamped the Family Dollar website, for instance, to make it more interactive, to, to give you a reason to uh, merge that digital with the physical once you're inside the store. So, again, it's, we're just, we're really just, just beginning to explore this, and it'll be, be fascinating to see how this evolves.
[00:34:35] Yeah, you know, it's interesting because we're seeing a lot of folks talk about the technologies that are in our locations today, or that are making their way into our locations today, and there's this concern about people losing their jobs, but... You know, I wonder, like, it's not like there's, um, competition, like, if you think about it, right?
[00:34:57] Sid Shetty: We're not actually saying that... There's a replacement for the human factor, like, you know, technology and robotics and AI will allow for the jobs that today can be automated to be automated, but that same human being should be used in a way that will help them. Improved the customer experience. So the job's not going away. It's just changing because
[00:35:25] Joshua Witte: Just evolving.
[00:35:25] Sid Shetty: it's just evolving. People still want the human experience. Like when I walk into a store, I'm walking in there and I'd like to be welcomed by someone with a smile. Like I still want that human being. I just don't need, you know, that person to do something if it can be replaced with a television that is essentially connected to, you know, uh, my experience in some way, like example, you know, I, I was at a conference, um, you know, early this year where there's this example of what a shopping experience could be like, like you're in the store, you're buying a bottle of wine, but as you're picking up the bottle, You know, there are sensors that tell, you know, that particular, uh, um, you know, kiosk in front of you, what you've picked up. And so it shows you the kind of pairing that, that the wine, uh, would go well with, it shows you where it's from, it educates you, um, on... You can have the kind of food that, that goes best. So now I just, in that few seconds, I've made a decision and it's an informed decision. So I don't need that necessarily, you know, to be done by only a human being, but I still want to talk to a human being as I'm making that purchase. So augmenting the experience I think is
[00:36:42] Joshua Witte: There it is.
[00:36:43] Sid Shetty: Right, is the,
[00:36:45] Joshua Witte: Augmenting the experience. You're layering technology and the, marrying the physical and the digital to create a, a, an omni channel type of experience, for lack of a better way to put it. I think that's, that's where we're heading. And, you know, it's, it's interactions and activations like that, that, uh, that will differentiate, uh, you know, the experience as, as this space evolves.
[00:37:05] Sid Shetty: That's perfect. And as you look at the next five years, Josh, like, as you look at where we are today in the next five years, what excites you the most? What, what do you think it's going to look like five years from now?
[00:37:17] Joshua Witte: It might be cliched, Sid, but AI just really is so exciting with how we can apply it to energy management, to utility management, to, uh... To indoor air quality, to any sort of sustainability type focus that the marriage between the AI and the technology and the hardware that we have is, is really going to help us move the needle. That's, and that's really exciting. And I have almost no fear that it'll, it'll, it'll turn against us at some point, but you know, a little healthy fear will, will help moderate that. That's all good.
[00:37:47] Sid Shetty: Well, Skynet, you never know, right?
[00:37:49] Joshua Witte: You never know when Skynet, that's right, it's, we're all heading towards Skynet eventually anyway, so might
[00:37:53] Sid Shetty: That's right. That's
[00:37:54] Joshua Witte: and welcome them.
[00:37:56] Sid Shetty: right. Um, hey, so, uh, one fun question. Um, Considering the role that you're in and what, you know, the professional career that you have chosen, what is it that you do in your everyday life, at home, that you would say helps make your life more eco friendly?
[00:38:18] Joshua Witte: Uh, well, one of my, my other passions outside of work is, is trail running. So I compete in long distance races all across, all around the world, really. Uh, and, and carrying a, a leave no trace sustainable philosophy into the wilderness and sharing that with other people and trying to pass it along really.
[00:38:40] That helps, you know, that's me translating the work I do for work into the stuff I do for fun and bringing a little ESG element into it as well. Trying to share that, you know, volunteering on the trail, cleaning up the trails, uh, you know, working with other folks within the trail running world. You know, trying to impart, impart those ways and it's, you know, it's a, it's a, it's a niche sport to begin with and, and actually a lot of folks within that space align here quite nicely with, with, with an ESG type mentality.
[00:39:08] We want to, we want to save the spaces that we play in to, for future generations and, you know, that, it all, that's how, that's how I make my connections there.
[00:39:15] Sid Shetty: I love it. That sounds amazing. And Josh, thanks for the impact that you continue to make. Um, and thank you for taking the time and being on this podcast. We really, really appreciate it. I absolutely enjoyed our conversation and for all those in our audience who would like to connect with you, uh, Josh, what's the best way to, uh, to find you?
[00:39:36] Joshua Witte: You can always find me on, uh, by email, jowitte@dollartree.com.. It's the easiest way to get a hold of me or find me on LinkedIn.
[00:39:45] Sid Shetty: Perfect. And with that, I'd just like to say thank you again. Really, really appreciate it. And to all those in our audience, thank you for joining us and we'll see you on the next episode of Elevating Brick and Mortar.
[00:39:57] music transition
[00:39:58] Well, that was Joshua Witte, Director of Energy, Sustainability, and ESG at Dollar Tree. As you heard today, expectations have never been higher, and one of the expectations consumers and investors have is that the brands they love do the right thing and follow sustainable practices and lead by example.
[00:40:19] Josh also shared some interesting developments on the regulatory front that will require brands to report on their sustainability initiatives. This is no longer going to be an option, and so the more brands can prepare and invest in the right people, technology, and practices, the better positioned they will be.
[00:40:40] This is a big nut to crack, but we all have to get started. And so as Josh mentioned, if you're just getting started, don't get bogged down by the minutiae, and start with the big picture. Make a plan, start setting targets, know your stakeholders, know what matters to people, and finally, be an evangelist. Make an impact.
[00:41:03] With that, I'm your host Sid Shetty, and I'll see you on the next episode of Elevating Brick and Mortar.