MONTRÉAL, RICHMOND, BC, and FORT MILL (News release) -- Domtar, a leading North American manufacturer of diversified forest products, has released its new Sustainability Strategy, a comprehensive plan that aligns the company's priorities with key sustainability objectives and stakeholder interests.

The Strategy includes performance metrics and benchmarks to track progress through 2030, with a focus on the company's woodlands and manufacturing operations across Canada and the United States. It will also serve as the framework for Domtar's first integrated Sustainability Report, covering all three business units (Paper & Packaging, Pulp & Tissue and Wood Products), which will be released later this year.

"We're proud to release this Strategy at a still relatively early stage in the operational integration of our three legacy companies under the new Domtar brand," said John D. Williams, Non-Executive Chairman of the Management Board of Domtar. "Domtar has a long history of excellence in sustainability. We said we would maintain the highest levels of environmental stewardship and sustainability performance, and today we're unveiling how we intend to deliver."

Building on the company's long-established commitment to sustainability and important socioeconomic impact in its operating communities, the Strategy is organized around three central pillars, with 12 strategic objectives and associated performance targets for 2026 and 2030:

Environmental Stewardship

Domtar is committed to stewarding the planet's resources responsibly. The objectives and 2030 targets under this pillar include:

• Advance our commitment to sustainable forest management by increasing landowner engagement and establishing Domtar as a recognized collaborative partner in advancing the status of critical habitat for threatened species.
• Positively impact biodiversity by ensuring 100% of operations with risks in high-value areas have biodiversity action plans in place.
• Decarbonize our operations, products and value chain by being on track to meet the science-based greenhouse gas emission reduction target we plan to set by 2026.
• Improve the water resiliency of our manufacturing operations by ensuring 100% of our facilities have water-related risk mitigation plans in place.

Our People and Communities

Domtar supports our operating communities and employees. The objectives and 2030 targets under this pillar include:

• Enforce a proactive safety program and culture, aiming to achieve zero safety injuries.
• Foster relationships with Indigenous communities as a preferred partner through the implementation of our Indigenous partnership policy and internal engagement strategies.
• Enhance our community engagement program, including employee volunteerism, by achieving $20 million in community investments over five years and tracking and reporting volunteerism milestones.
• Strengthen the employee experience by establishing employee satisfaction milestones determined through engagement surveys as well as growth and development targets for 85% of potential successors and critical roles.

Responsible Business

Domtar upholds ethical and sustainable business practices and engages with our customers, business partners and stakeholders honestly and transparently. The objectives and 2030 targets under this pillar include:

• Ensure ethical and sustainable leadership practice by upholding our Global Code of Ethics and Business Conduct, Sustainability Policy and internationally recognized reporting standards.
• Drive sustainability through product, process and value chain innovation, ensuring a significant share of innovation-related investments support sustainability objectives compared to 2025.
• Safeguard the people in our value chain by conducting human rights assessments according to a global human rights policy aligned with international standards.
• Advance shared goals, enhance resilience and build mutual trust by increasing stakeholder trust levels compared to 2025 and meeting our 2030 sustainability targets.

"Our objectives are ambitious and reflect a rigorous assessment of the standards and other guideposts that can help drive progress towards them," said Sabrina de Branco, Domtar's Global Chief Sustainability Officer. "We are also committing to the transparency stakeholders, rightsholders and partners will need to evaluate the outcomes firsthand."

The strategy development process included extensive engagement across Domtar's stakeholder universe, including outreach to customers, operating communities, business partners and non-governmental organizations. The unique perspectives of Indigenous peoples were also sought out. Over 500 representatives provided input via survey and more than 85 individuals participated in interviews.

The Strategy is also aligned with the UN's widely endorsed Sustainable Development Goals. Any further evolution of the Strategy and its objectives will be driven in part by this important global call to action.

Strategy development was led by Domtar's Sustainability team and operational subject matter experts from across the company's business units with select external guidance. Implementation responsibilities, along with required investments and resource needs, have been thoroughly assessed to support successful execution.