Domtar Launches 2030 Sustainability Strategy, Reinforcing Commitment to Climate Action, Responsible Forestry and Community Impact

Domtar today released its 2025 Sustainability Report, marking a significant milestone in the company's sustainability journey with the launch of its 2030 Sustainability Strategy and its first integrated sustainability report since the unification of Domtar, Resolute Forest Products and the Paper Excellence Group under a single brand.

The report outlines how sustainability is becoming increasingly embedded into Domtar's business strategy, operations and long-term value creation while reinforcing the company's commitment to responsible forestry, climate action, employee wellbeing and ethical governance.

"2025 represented a transformational year for Domtar," said company leadership in the report. "While market conditions across the forest products industry remained challenging, sustainability continued to strengthen our resilience, improve operational performance and position us for long-term growth."

Building a Sustainable Future Through the 2030 Strategy

The newly launched 2030 Sustainability Strategy provides a comprehensive roadmap centered on three strategic priorities:

• Environmental Stewardship

• Our People & Communities

• Responsible Business

Developed through extensive engagement with more than 485 stakeholders, the strategy aligns with multiple United Nations Sustainable Development Goals while integrating sustainability into every aspect of business planning and decision-making.

Environmental Leadership

Domtar reported strong environmental performance across its North American operations, demonstrating continued progress toward responsible resource management and climate resilience.

Highlights include:

• 100% of manufacturing facilities and forest operations certified under recognized chain-of-custody standards

• 100% of approximately 22 million hectares of managed forests certified under FSC® and/or SFI® standards

• 72% renewable energy use across operations

• 76% renewable fuel utilization

• 52% of electricity generated internally

• 90% of manufacturing residuals beneficially reused

• 92% of water returned safely to the environment

• Completion of the company's first consolidated Scope 3 greenhouse gas emissions inventory

• Introduction of a new enterprise-wide Environmental Policy

These achievements demonstrate Domtar's continued investment in decarbonization, biodiversity conservation, responsible forest management and operational efficiency.

Strengthening Communities and Indigenous Partnerships

The report emphasizes that sustainability extends beyond environmental performance to include meaningful social impact.

During 2025, Domtar:

• Invested $3.3 million in community donations

• Contributed $1.6 million to educational institutions and students

• Spent $178 million with diverse suppliers, including $70 million with Indigenous suppliers

• Achieved Gold-Level Parity Certification from Women in Governance

• Completed unconscious bias awareness training for 100% of salaried employees

• Maintained a workforce with approximately 57% union representation

Among the year's most significant milestones was the signing of a landmark agreement with the Tla'amin Nation to return culturally significant land, representing an important step in reconciliation and Indigenous partnership.

Domtar also introduced its new Global Indigenous Relations Policy, establishing a consistent framework for engagement with Indigenous communities across its operations.

Driving Responsible Business

The report highlights sustainability as a competitive advantage that supports customer relationships, operational excellence and long-term business resilience.

Key business achievements include:

• $7.4 billion in direct economic impact

• $276 million invested in operational resilience

• Customers served in more than 90 countries

• More than 350 customer sustainability requests addressed during the year

• 100% employee completion of annual Code of Ethics and Business Conduct training

The company also strengthened governance through new sustainability oversight committees and expanded transparency by aligning reporting with internationally recognized frameworks, including GRI, SASB and the Corporate Sustainability Reporting Directive (CSRD).

Recognition for Sustainability Leadership

Domtar's sustainability performance earned significant external recognition during the reporting period, including:

• A leadership score of A- in CDP Forests

• An A score in CDP's Timber Commodities category

• Recognition among the Private 25 Most Sustainable Corporations in the World by Corporate Knights

• Third place in Finance Montreal's Best Sustainability Report competition within the natural resources sector

• The 2026 SFI Leadership in Conservation Award

Additionally, Domtar donated approximately 1,800 hectares of forestland in Newfoundland to the Nature Conservancy of Canada, representing the organization's largest land donation in Atlantic Canada's history.

Sustainability as a Business Strategy

Rather than viewing sustainability as a standalone initiative, Domtar positions it as a central driver of resilience, innovation and long-term competitiveness.

Throughout 2025, the company strengthened governance by establishing an External Sustainability Advisory Committee composed of internationally recognized experts from academia, Indigenous relations, business and environmental organizations. The committee provides independent oversight and guidance on sustainability strategy, accountability and emerging risks and opportunities.

Domtar also enhanced collaboration across business units through an integrated governance model designed to improve transparency, align sustainability objectives and accelerate measurable progress.

Looking Ahead

With more than 13,000 employees across over 60 North American locations, Domtar enters the next phase of its sustainability journey focused on delivering measurable progress against its 2030 objectives.

By integrating sustainability into strategic planning, investing in responsible operations and strengthening partnerships with customers, communities and Indigenous Peoples, the company aims to create lasting environmental, social and economic value while supporting a lower-carbon, more resilient forest products industry.