Carbon Project Unlocks Value of Southern Forests

Fort Mill, November 20, 2013 /3BL Media/ – A Domtar-supported cash-for-carbon exchange developed by Asheville, N.C.,-based Dogwood Alliance and office-supply giant Staples, Inc., has resulted in the first sales of carbon offsets by forest landowners in two Southern states.

Called Carbon Canopy, this first-of-its-kind exchange was created to encourage sustainable development of the nation’s forests. It is designed to deliver the following outcomes: landowners receive revenue for their carbon, but also agree to follow Forest Stewardship Council (FSC) sustainable forestry practices; forest-product companies agree to purchase sustainably harvested timber from Carbon Canopy landowners; and corporate partners purchase the related carbon assets, which reduce their energy footprints and support a marketplace that promotes forest conservation.

The first two sales contracts involve the owners of 14,000 acres of FSC-certified forest in Western North Carolina and Southwestern Virginia, and will create more than 100,000 metric tons of carbon offsets in their first year.

“As a partner in the Carbon Canopy initiative, Domtar is proud to support this innovative approach to expanded FSC forest management certification and enhanced return to landowners. We congratulate Dogwood Alliance, Staples and other key partners for their commitment to unlocking the value of forests,’’ said Paige Goff, Domtar’s Vice-President – Sustainability and Business Communications.

FSC-certified timber is Domtar’s preferred source for its wood fiber and in 2010. The Company formed the Four States Timberland Owners Association to assist Southern landowners and managers in obtaining sustainable forest management certification. Domtar and 55 individual landowners representing more than 70,000 acres of forestland achieved certification in November 2012. For this effort, Domtar received the American Forest & Paper Association’s 2013 sustainable forest management award.

For more information on how the Carbon Canopy exchange operates and its benefits for landowners, forest-product companies, corporate green leaders and the ecosystem, please refer to the press release issued today by Dogwood Alliance.

About Domtar

Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar(r), Lynx(r) Opaque Ultra, Husky(r) Opaque Offset, First Choice(r) and Domtar EarthChoice(r). Domtar is also a leading marketer and producer of a broad  line of incontinence care products marketed primarily under the Attends(r) brand name as well as baby diapers. In 2012, Domtar had sales of US$5.5 billion from some 50 countries. The Company employs approximately 9,500 people. To learn more, visit www.domtar.com.

Contact Information

Stefan Nowicki - Manager, Communications and Government 

stefan.nowicki@domtar.com

803-802-8099