Domtar’s 2018 Sustainability Update Highlights Continued Progress on Long-Term Strategy

Domtar Corporation (NYSE: UFS) (TSX: UFS) today released its 2018 Sustainability Update, highlighting the company’s ongoing efforts to take a longer-term view of creating and preserving value for shareholders, customers, employees and communities. In an update to its 2017 report, Domtar announced that the company has met or exceeded three of the company’s six 2020 sustainability goals this year.

“At Domtar, everyone has a role in sustainability because it is how we do business every day,” explained John D. Williams, Domtar's president and CEO. “Sustainability is an integral part of our long-term growth strategy, which is exactly why we have been able to meet or surpass half of our 2020 sustainability goals already in 2018—and why we are well on track to achieve the remaining.”

Highlighted in the 2018 update, Domtar’s commitment to integrating sustainability into its long-term growth strategy resulted in key accomplishments across the company’s 2020 goals, including:

• An 18% reduction of greenhouse gas (GHG) emissions since 2010, surpassing Domtar’s 2020 goal of 15%. Domtar’s 2020 goal has been to reduce total direct and indirect greenhouse gas (GHG) emissions from purchased energy at pulp and paper mills 15% by 2020 from 2010 levels. Fuel switching of six power boilers from coal to natural gas over the past few years provided the majority of reductions.
• Completion of a water-cost model for Domtar’s pulp and paper mills ahead of 2020 schedule. The 2020 goal to develop a model for the company’s pulp and paper mills to measure and more strategically manage the full cost of using water was achieved this year. The model was informed by conducting pilot studies at five mills over the past two years to incorporate unique, site-specific water conditions. Domtar plans to begin operationalizing the full cost of water into its business decisions and conducting additional water-cost assessments at other mills in 2018.
• An increase in the level of Forest Stewardship Council® (FSC®) certified fiber procured for Domtar pulp and paper mills to 22% of total fiber use, exceeding the company’s 2020 goal of 20%. Domtar remains committed to lowering the technical and financial hurdles to increasing forest certification in its wood procurement regions.

The 2018 Sustainability Update also demonstrated how the company is on track to achieve its remaining 2020 goals, making notable progress in key areas, including: