Canfor 2025 Sustainability Report

Canfor’s 2025 Sustainability Report highlights its commitment to responsible forestry, climate action, and community engagement. Despite a challenging global market, the company continued to focus on safety, operational excellence, and long-term resilience. Sustainability remains central to its strategy, guiding environmental, social, and governance (ESG) performance.

Key 2025 Highlights

🌳 Environmental Performance

• 56 million seedlings planted (including 21 million in Alberta)

• 100% of managed forests certified to SFI® or FSC® standards

• ~80% renewable energy usage across operations

• 3,900 tonnes of emissions avoided through renewable diesel

• Nearly 5 billion board feet of lumber produced, storing ~2 million tonnes of carbon

👷 Social Impact

• $1.7 million donated to North American communities

• $1 million invested in European community programs

• 97% employee training completion (Respectful Workplace program)

• Ongoing partnerships with Indigenous communities

🏢 Governance & Recognition

• EcoVadis Silver Medal (top 15% globally)

• Transparent disclosure of climate, water, and forestry data (CDP)

Sustainability Strategy

Canfor’s sustainability framework is built on three pillars:

1. Resource Stewardship
   Responsible management of forests and natural resources

2. Operational Excellence
   Efficient, innovative, and low-carbon production

3. People & Communities
   Safe workplaces and strong community relationships

This strategy aligns sustainability with business growth and resilience.

Environmental Responsibility

Sustainable Forestry

• 100% certified forest management

• Strong focus on biodiversity, wildlife habitat, and water protection

• Active wildfire prevention and forest regeneration programs

• Collaboration with Indigenous communities on land stewardship

Fibre Optimization

• Maximizing value from every harvested log

• Advanced technologies to reduce waste in sawmills

• Residual materials reused for:

  • Bioenergy

  • Bioproducts

  • Animal bedding and construction materials

Climate & Energy

• Target: 42% reduction in Scope 1 & 2 emissions by 2030

• Target: 25% reduction in Scope 3 emissions by 2030

• Increased use of renewable energy and biomass

• Transition toward renewable diesel and energy efficiency improvements

Social Responsibility

Safety & Workforce

• Safety remains the top priority

• Continuous improvement in safety systems

• Target to reduce incident rates by 2030

Communities & Indigenous Relations

• Financial contributions to local communities

• Long-term partnerships with Indigenous groups

• Support for education, health, and environmental initiatives

Operational Performance

Production (2025)

• 4.8 billion board feet of lumber

• 416,000 tonnes of pulp

• 126,000 tonnes of paper

Energy & Efficiency

• 76–80% of energy from renewable sources

• Ongoing investments in energy efficiency and innovation

Future Outlook

Canfor is focused on building a low-carbon, resilient future by:

• Expanding sustainable product lines

• Investing in renewable energy and innovation

• Strengthening global operations and partnerships

• Continuing leadership in sustainable forestry

Conclusion

The 2025 report demonstrates Canfor’s strong progress toward sustainability goals. Through responsible forest management, emissions reduction, and community investment, the company is positioning itself as a leader in the transition to a low-carbon economy.