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Sustainability
at Domtar

I have been asked more than once over the years — “What motivates Domtar’s sustainability leadership? The expectations of our customers, employees, communities, or NGO partners?”

A quick answer is, “All of the above.” But the complete, thoughtful answer is more interesting and instructive.

It would miss the point to think that Domtar’s sustainability accomplishments have solely been successful responses to the interests of others — although it certainly has had that salutary effect.

Domtar’s motivation over many years to address sustainability issues has largely been driven by self-interest. This is not as unseemly as it may sound. Indeed, it is a powerful, positive reminder that businesses that are agile and innovative enough to change with market conditions and consumer preferences, and that stay focused on using resources ever more efficiently, will stand the test of time. In Domtar’s case, almost 175 years.

Sustainability in business is nothing more (and nothing less) than the serious consideration of the longer term when identifying and assessing a broad set of risks and opportunities. Given that Domtar earned the reputation for looking beyond quarterly and annual results as a publicly traded company, it will certainly now do so as a privately-owned one, as part of the Paper Excellence Group.

Nearly two decades ago, when the company expressed a preference for wood fiber certified to the Forest Stewardship Council (FSC) standards for sustainability, the company knew that an FSC fiber supply was not readily available. Today, Domtar is one of the largest users of FSC fiber, and we are continuing our work to expand the supply of FSC fiber with the certification of two large forestlands in Ontario, Wabigoon and Trout Lake. We are also helping launch a new industry partnership to harness information technology to bring unprecedented transparency to the movement of wood fiber through supply chains.

At the same time, Domtar has entered into an exciting new agreement with The Nature Conservancy of Canada to permanently conserve boreal forest in what will be the single largest private conservation effort in Canadian history.

The products we make are recycled at a record rate, and we are creating even more demand for recycled paper by building what will be the second largest, 100-percent recycled packaging board mill in North America. We are also engaged in developing renewable, sustainable alternatives to single-use plastic packaging. These are practical examples of our business interests driving a progressive sustainability agenda.

Leadership is not about following a path; it’s about setting a path where one does not exist. Domtar has substantially reduced its greenhouse gas emissions over the years, and is one of the most carbon-efficient pulp and paper manufacturers in North America. However, our aspiration for the future is to work with governments, universities, and suppliers to find a path to “net zero” greenhouse gas emissions.

Similarly, our manufacturing operations are in water rich areas and we return the vast majority of the water we use back to the natural environment. Nonetheless, the efficient use of renewable resources is part of the company’s DNA, and water is no exception. That is why we are continuing to invest capital in systems that allow us to re-use the water in our operations over and over again. These investments in closed-loop systems are advancing the ideal of circularity in our economic activity.

Our interest in our people is also forward looking. Beyond providing Domtar’s employees with fair pay, good benefits, and a safe work environment, we want them to understand that the diversity of their experiences, perspectives, backgrounds, and skills are an important part of the company’s success. We believe that workforces that reflect the diversity of the communities in which we operate is not just good for the community, but also for the company and its customers.

The following pages introduce our vision for the future of sustainability at Domtar. Yes, we are an old and proven company in terms of our existence and experience. We are also a new company because we continue to reinvent ourselves, with new ideas, new products, a new ownership structure, and new opportunities to bring leadership to issues that matter. Both of these together — the old and the new — are testaments to the power of sustainability. We appreciate your taking a few minutes to understand this vision. We think it is exciting, and believe you will too.


John D. Williams
President and Chief Executive Officer

JDW

Taking the longer view has allowed Domtar to exert leadership on the most challenging issues, even before solutions were clear.

I have been asked more than once over the years — “What motivates Domtar’s sustainability leadership? The expectations of our customers, employees, communities, or NGO partners?”

A quick answer is, “All of the above.” But the complete, thoughtful answer is more interesting and instructive.

It would miss the point to think that Domtar’s sustainability accomplishments have solely been successful responses to the interests of others — although it certainly has had that salutary effect.

Domtar’s motivation over many years to address sustainability issues has largely been driven by self-interest. This is not as unseemly as it may sound. Indeed, it is a powerful, positive reminder that businesses that are agile and innovative enough to change with market conditions and consumer preferences, and that stay focused on using resources ever more efficiently, will stand the test of time. In Domtar’s case, almost 175 years.

Sustainability in business is nothing more (and nothing less) than the serious consideration of the longer term when identifying and assessing a broad set of risks and opportunities. Given that Domtar earned the reputation for looking beyond quarterly and annual results as a publicly traded company, it will certainly now do so as a privately-owned one, as part of the Paper Excellence Group.

JDW

Taking the longer view has allowed Domtar to exert leadership on the most challenging issues, even before solutions were clear.

Nearly two decades ago, when the company expressed a preference for wood fiber certified to the Forest Stewardship Council (FSC) standards for sustainability, the company knew that an FSC fiber supply was not readily available. Today, Domtar is one of the largest users of FSC fiber, and we are continuing our work to expand the supply of FSC fiber with the certification of two large forestlands in Ontario, Wabigoon and Trout Lake. We are also helping launch a new industry partnership to harness information technology to bring unprecedented transparency to the movement of wood fiber through supply chains.

At the same time, Domtar has entered into an exciting new agreement with The Nature Conservancy of Canada to permanently conserve boreal forest in what will be the single largest private conservation effort in Canadian history.

The products we make are recycled at a record rate, and we are creating even more demand for recycled paper by building what will be the second largest, 100-percent recycled packaging board mill in North America. We are also engaged in developing renewable, sustainable alternatives to single-use plastic packaging. These are practical examples of our business interests driving a progressive sustainability agenda.

Leadership is not about following a path; it’s about setting a path where one does not exist. Domtar has substantially reduced its greenhouse gas emissions over the years, and is one of the most carbon-efficient pulp and paper manufacturers in North America. However, our aspiration for the future is to work with governments, universities, and suppliers to find a path to “net zero” greenhouse gas emissions.

Similarly, our manufacturing operations are in water rich areas and we return the vast majority of the water we use back to the natural environment. Nonetheless, the efficient use of renewable resources is part of the company’s DNA, and water is no exception. That is why we are continuing to invest capital in systems that allow us to re-use the water in our operations over and over again. These investments in closed-loop systems are advancing the ideal of circularity in our economic activity.

Our interest in our people is also forward looking. Beyond providing Domtar’s employees with fair pay, good benefits, and a safe work environment, we want them to understand that the diversity of their experiences, perspectives, backgrounds, and skills are an important part of the company’s success. We believe that workforces that reflect the diversity of the communities in which we operate is not just good for the community, but also for the company and its customers.

The following pages introduce our vision for the future of sustainability at Domtar. Yes, we are an old and proven company in terms of our existence and experience. We are also a new company because we continue to reinvent ourselves, with new ideas, new products, a new ownership structure, and new opportunities to bring leadership to issues that matter. Both of these together — the old and the new — are testaments to the power of sustainability. We appreciate your taking a few minutes to understand this vision. We think it is exciting, and believe you will too.


John D. Williams
President and Chief Executive Officer