Turning Strategy into Action: Q2 2026 Sustainability Strategy Implementation Update

July 15, 2026

BY: Julia Fandetti

BY: Jad Ibrahim

Summary

Our Q2 2026 Sustainability Strategy update shares our progress toward the goals outlined in Domtar’s 2030 Sustainability Strategy. Highlights include:  

• Our 2025 sustainability report was launched June 25, 2026.

• In May, we were named winner of the Sustainable Forestry Initiative (SFI)’s Leadership in Conservation Award.

In our Q2 2026 Sustainability Strategy Implementation Update, we share updates on Domtar’s 2030 Sustainability Strategy. We provide quarterly progress updates in this format across the three pillars of Domtar’s sustainability strategy, Environmental Stewardship, Our People and Communities and Responsible Business.

Domtar’s Q2 2026 Sustainability Strategy Update 

Domtar's Environmental Stewardship pillar sets several objectives for stewarding the planet’s natural resources. For this Q2 2026 Sustainability Strategy update, we:

Received the 2026 SFI Leadership in Conservation Award for Domtar’s sustained engagement with the SFI Climate Smart Forestry Initiative and leadership in meaningful conservation efforts.

Represented Domtar as part of a FSC US envoy to Bonn to meet with key FSC International staff as well as FSC U.S. and key stakeholders. The purpose of the trip was to come to a shared, candid understanding of FSC certification’s impacts in the United States, and to use that understanding to strengthen alignment across the FSC system.

Held a one-day workshop bringing together subject matter experts to further develop our biodiversity risk assessment framework, including a deep dive into Domtar’s dependencies, risks, impacts and opportunities. This approach is helping to prioritize facilities and finalize the outline for a full risk analysis pilot focused on a representative sample of prioritized sites.

Disclosed our 2025 Scope 1 and 2 emissions inventory in our 2025 sustainability report and made significant progress on our Scope 3 emissions inventory, with an improved methodology to enhance completeness and accuracy.

Completed the third year of water reduction projects funded through the Water Reduction Capex Fund. These combined initiatives have decreased the Paper & Packaging business unit’s consumption by 10% through Q1-2026 compared to 2020.

Under the Our People and Communities pillar, we continued strengthening our efforts to build stronger communities, develop our people, foster Indigenous partnerships and enhance workplace safety. For this Q2 2026 Sustainability Strategy update, we have:

Confirmed through a robust data collection initiative that Domtar invested $4.9 million in our operating communities in 2025, exceeding our annual $4 million target and keeping us on track toward our cumulative $20 million target by 2030.

Validated employees’ 2025 volunteer hours to ensure all reported activities align with Domtar's definition and to inform the 2030 volunteerism milestone to be set later this year.

Identified successors for critical roles with most high-potential employees and successors now supported by individualized development plans, advancing our 2030 target to achieve at least 85% participation.

Established BU-specific health and safety targets and shared them with employees during our most recent town hall, reinforcing our 2030 commitment to zero injuries.

Our Responsible Business pillar guides our commitment to conduct business ethically, transparently and responsibly while strengthening governance, sustainability reporting and stakeholder partnerships. For this Q2 2026 Sustainability Strategy update, we:

Published our 2025 sustainability report, highlighting the progress we have made toward our 2030 sustainability commitments while reinforcing our commitment to ethical and sustainable leadership practice.

Submitted our annual “S211 report” in compliance with Canada's Fighting Against Forced Labour and Child Labour in Supply Chains Act, strengthening our disclosures related to supplier risk screening, training, due diligence and our approach to remediation.

Received third place in the Natural Resources Sector category of Finance Montréal's Best Sustainability Report competition for our 2024 Sustainability Report.

Sustainability at Domtar means committing to responsible stewardship of the environment, supporting and engaging with our people and communities and operating as a responsible business. This is the foundation for the three pillars of our sustainability strategy, which guides us toward 2030 with measurable goals. We track our sustainability strategy’s progress internally, verify it externally, and report it transparently on Domtar.com.