Domtar's Sustainability Push: A New Blueprint for the Forest Products Industry?

FORT MILL, SC – June 25, 2026 – One year after launching an ambitious 2030 sustainability strategy, forest products giant Domtar has released a comprehensive progress report suggesting a significant acceleration in its environmental and social governance. The company's 2025 Sustainability Report, titled “Advancing Our Sustainability Journey,” details a series of strategic shifts, from improved environmental performance scores to landmark agreements with Indigenous partners, positioning the newly integrated firm as a potential standard-bearer in a resource-intensive industry.

The report, released today, marks the second unified disclosure since Domtar’s operational consolidation following the acquisitions of Domtar Corporation and Resolute Forest Products by the Paper Excellence Group. It provides a detailed scorecard of the company's progress, signaling a deliberate move to embed sustainability into its core business strategy.

“This report shows how much we’ve achieved since we launched our 2030 Sustainability Strategy in May 2025,” said Sabrina de Branco, Global Chief Sustainability Officer, in a statement. “In a relatively short period of time, we have made meaningful progress in strengthening governance, aligning key policies and processes, clarifying responsibilities and advancing initiatives that are now taking shape across the organization.”

From Strategy to Scorecard: A Year of Accelerated Progress

Domtar's report is more than just a collection of green initiatives; it represents a structured overhaul of its governance and reporting mechanisms. A key achievement highlighted is a significant improvement in its scores from CDP, a global non-profit that runs a leading environmental disclosure system. For its first unified disclosure as an integrated company, Domtar earned an A- for Forests, a B for Climate Change, and a B for Water Security. These scores represent a notable jump from the B and C grades held by its legacy organizations, reflecting a more rigorous and transparent approach to managing its environmental footprint.

This progress is underpinned by a newly fortified governance structure. In 2025, the company established new corporate policies for Environmental, Health & Safety and Global Indigenous Relations. More critically, Domtar launched an External Sustainability Advisory Committee (ESAC) composed of independent experts from academia, business, and Indigenous relations. The committee, which includes respected figures like Tensie Whelan from the NYU Stern Center for Sustainable Business and Indigenous relations expert Jean Paul Gladu, is tasked with providing objective oversight and challenging the company on emerging trends and risks. This move suggests a commitment to accountability that goes beyond internal metrics.

Beyond the Metrics: Land, Water, and Community Impact

While improved scores and policies are significant, Domtar is also highlighting tangible, on-the-ground impacts. Perhaps the most profound example is the historic 'tiskwat land agreement' signed with the Tla’amin Nation in British Columbia in March 2025. Through the agreement, the Tla’amin Nation reacquired a large portion of its ancestral lands at a former paper mill site, a place of deep cultural and historical significance.

The deal is the culmination of years of collaboration and marks a meaningful step toward economic and cultural reconciliation. Tla’amin Nation leaders have spoken of the deep emotional significance of reconnecting with the land, which they plan to manage for both cultural preservation and regional economic development. For Domtar, the agreement serves as a powerful demonstration of its new Global Indigenous Relations policy in action, turning corporate commitments into lasting community legacies.

Similarly, the company is putting capital behind its environmental targets. A dedicated capital expenditure fund has been established to help its paper and packaging mills achieve a 20% reduction in water-use intensity by 2030, benchmarked against 2020 levels. The company is also making strides in climate transparency, having consolidated its Scope 3 emissions inventory for the first time. It plans to publish this data in its next CDP report and establish an independent, science-based emissions reduction target by the end of 2026, aligning its climate goals with global scientific consensus.

The Business Case for a Greener Portfolio

Domtar's strategic shift is not purely altruistic; it is deeply intertwined with its long-term business strategy. As a privately held entity under the beneficial ownership of Jackson Wijaya, who also controls Asia Pulp and Paper Group (APP), the company operates under a unique corporate structure and a degree of public scrutiny. Environmental groups like Greenpeace Canada have raised concerns about the consolidated ownership and APP's historical environmental record, calling for greater transparency across the connected enterprises. Domtar has consistently maintained that it operates as an independent entity.

In this context, a robust and verifiable sustainability strategy becomes a critical tool for building brand reputation, managing risk, and securing a social license to operate. By proactively improving its environmental performance, strengthening community and Indigenous partnerships, and submitting to the scrutiny of external bodies like CDP and its own ESAC, Domtar is building a case for its own resilience and responsible stewardship. This approach appears to be gaining traction; Corporate Knights recognized Domtar as one of the "Private 25 Most Sustainable Corporations in the World" in 2025, lending third-party validation to its efforts.

As the company continues to integrate the operations of its legacy firms, its sustainability performance will be a key indicator of its overall success. By aligning with international frameworks like the European Sustainability Reporting Standards and committing to quarterly progress updates, Domtar is signaling to investors, customers, and communities that its journey toward sustainability is a core and non-negotiable part of its future growth.