Turning Strategy into Action: Q3 2026 Sustainability Strategy Implementation Update

In our Q3 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 Q3 2026 Sustainability Strategy Update  

Domtar's Environmental Stewardship pillar sets several objectives for stewarding the planet’s resources. In Q3 2026, we: 

• Completed our Scope 3 data inventory for our 2025 CDP disclosure on September 16. This marks our third consecutive annual inventory as an integrated company. Each year, we strengthen data validation and expand data collection; we now rely on nearly 60 internal subject matter experts to complete the inventory. Our 2025 Scope 3 dataset will be ready for use in customer-specific requests in Q4-2026, including the CEPI (Confederation of European Paper Industries) framework.     

• Conducted water risk assessments across our pulp, paper, tissue and wood products facilities using the WRI Aqueduct Water Risk Atlas and WWF Water Risk Filter. The assessments evaluated basin-level and operational water risks through 2050. Findings, including high risks faced in certain basins, are disclosed in our annual CDP report.  

• Advanced scenario analysis to guide our decarbonization roadmap and develop our long-term, science-aligned emissions reduction target. Throughout 2026, our Sustainability team has worked closely with operations and key corporate functions to gather data and identify practical solutions for emission reductions. We also completed a five-year internal inventory of projects with GHG reduction potential and engaged a third party to identify proven decarbonization solutions globally. Together, these inputs will shape the emissions reduction goal we aim to announce in our 2026 Sustainability Report. 

• Confirmed a new partnership with NatureServe to help protect forest biodiversity across Mississippi’s working forests. The project will identify important habitats and support their protection, strengthening our approach to responsible forest management and sustainable fiber sourcing. 

• Our Nekoosa mill in Wisconsin earned a 2026 Energy Efficiency Excellence Award from Focus on Energy. The award recognizes projects that reduce energy use, improve operations and deliver long-term savings, setting an example for other mills to follow.

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 Q3 2026 Sustainability Strategy update, we: 

• Donated $25,000 to Indspire’s Building Brighter Futures bursaries and scholarships program to support First Nations, Inuit and Métis students pursuing postsecondary studies in forestry and skilled trades across Canada. The Government of Canada matched our donation, bringing the total financial support to $50,000.

• Achieved Gold-level Women in Governance Parity Certification, marking our third consecutive year of certification. This recognition reflects our continued progress in advancing gender equity, inclusive leadership and representation, and our commitment to embedding equitable practices in governance, talent management and organizational culture. 

• Celebrated six of our employees who earned recognition from three Canadian industry publications for their role in shaping and continually reinventing the forest products sector. Their achievements highlight our emerging talent and our commitment to developing the next generation of leaders. 

• Demonstrated strong safety performance by reaching major milestones at four facilities: Menominee achieving 2.75 million hours without a recordable incident, Marlboro reaching one year without a recordable incident, Owensboro attaining one year without a lost-time injury, and West Carrollton marking two years without a lost-time injury.  Our employees continue to work vigilantly towards our 2026 Lost-Time Frequency Rate (LTFR) target of less than 0.45 and our Total Frequency Rate (TFR) target of less than 1.0 in Paper & Packaging business unit (BU) and less than 0.75 in our Tissue, Pulp and Wood Products BUs. 

Our Responsible Business pillar guides how we conduct business ethically, transparently and responsibly while strengthening governance, sustainability reporting and stakeholder partnerships. For this Q3 2026 Sustainability Strategy update, we: 

• Conducted targeted interviews with external stakeholders to understand perceptions of Domtar’s reputation as we’ve evolved from three companies into one. Key NGOs and strategic customers highlighted the trust we have built through transparency, collaboration and consistent communications. Findings were shared with company leadership and point to an opportunity to strengthen our visibility as a sustainability leader by demonstrating measurable impact and future value creation. 

• Completed our 2026 CDP disclosure, applying lessons from our previous performance to improve the quality and completeness of our submission. CDP scores will be released later this year. We also submitted our 2025 disclosures to the Environmental Paper Assessment Tool (EPAT) and Book Chain Project platforms during the quarter. 

• Refined our strategic innovation objective to strengthen collaboration across the organization and better understand the environmental and business value of our innovation initiatives. Building on existing R&D and capital investment processes, the strategic innovation in our 2030 Strategy aims to increase the visibility of sustainability-related opportunities, support more informed decisions and track progress in sustainability-driven innovation. 

• Completed the annual review of Domtar’s Global Sustainability Policy to confirm alignment with corporate compliance and regulatory requirements. We also finalized an engagement plan for subject matter experts, who will receive dedicated training on the policy in Q4. 

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. 

To learn more about sustainability at Domtar: 

• Revisit the Q2 2026 Sustainability Strategy Update 

• Explore Domtar’s recent sustainability report to learn more about our commitment to sustainability 

• Watch videos about each of our three pillars: 

• Environmental Stewardship 

• Our People and Communsities 

• Responsible Business 

Send feedback and questions to sustainability@domtar.com.