Environmental organization Greenpeace is urging for increased transparency from Canada’s largest pulp and paper company, expressing concerns over the lack of public disclosure regarding the utilization of government funding received by the company. According to Greenpeace’s recent report titled “Paper Trail to Nowhere,” Domtar, previously known as Paper Excellence, has been allocated $200 million in government funding from federal and provincial authorities across Canada between 2020 and 2024. The report also questions the company’s lobbying practices.
The report highlights a lack of clear accountability from Domtar regarding its corporate control over forests in Canada, emphasizing the need for transparency in understanding the company’s long-term intentions and impacts on the forest industry. In response, Domtar’s spokesperson, Seth Kursman, asserts the company’s adherence to lobbying regulations across all operational jurisdictions.
Greenpeace is advocating for future government funding to Domtar to be contingent upon conditions promoting nature conservation, diversity protection, Indigenous rights, and public accountability. The organization is urging Jackson Wijaya, the company’s owner, to address concerns about corporate governance, ownership structure, and forest management practices before the House of Commons committee on natural resources. Despite past calls for Wijaya to testify, the committee has not resumed its investigation into Canada’s pulp and paper industry.
The report underscores Greenpeace’s ongoing scrutiny of Domtar, following the company’s acquisitions of Paper Excellence in 2021 and Resolute Forest Products in 2023, subsequently rebranding as Domtar in October 2024. Domtar now manages 22 million hectares of forests in Canada, representing nearly 10% of all managed forest land in the country.
Moreover, the report references a previous investigation into Paper Excellence’s ties with Asia Pulp and Paper (APP), emphasizing concerns over APP’s environmental track record in Indonesia. Domtar insists on its independence from APP amidst calls for Wijaya to testify before authorities.
Greenpeace’s report also sheds light on Domtar’s lobbying activities, detailing engagements with government officials and highlighting the company’s lobbying efforts at both federal and provincial levels. The report questions the effectiveness of government investments in Domtar’s operations, particularly in British Columbia, where the majority of the company’s mills are situated.
In response to the report, Kursman emphasizes the challenges faced by Canada’s lumber market due to tariffs and duties, acknowledging government support for innovative projects aimed at preserving jobs. He reassures that Domtar is committed to returning government funds in cases where projects are unsuccessful, underscoring the company’s dedication to sustainable forestry practices and transparency.