An environmental organization, Greenpeace, is urging for increased transparency from Canada’s leading pulp and paper company, expressing concerns over the lack of public disclosure regarding the utilization of millions of dollars in government funding allocated to Domtar. Greenpeace’s report, titled “Paper Trail to Nowhere,” reveals that Domtar, formerly known as Paper Excellence, has received $200 million in government funding from federal and provincial sources across Canada between 2020 and 2024. The report questions Domtar’s transparency, corporate control over forests, and lobbying practices, emphasizing the need for clear accountability and public oversight.
Responding to the report, Domtar’s spokesperson, Seth Kursman, affirmed the company’s compliance with lobbying regulations in all operational jurisdictions. Greenpeace is advocating for future government funding to Domtar to be tied to conditions that prioritize nature conservation, diversity protection, Indigenous rights, and accountability mechanisms. The group is urging company owner Jackson Wijaya to testify before the House of Commons committee on natural resources to clarify governance structures, long-term intentions, and potential impacts on Canadian forests and the forest industry.
Despite calls for accountability, the committee has yet to resume its study on Canada’s pulp and paper industry or summon Wijaya for testimony. Greenpeace’s report sheds light on Domtar’s expansion post-acquisition of Paper Excellence and Resolute Forest Products, managing 22 million hectares of Canadian forests. The report also highlights the company’s lobbying efforts, emphasizing its interactions with federal officials and MPs.
Greenpeace’s scrutiny of Domtar follows previous investigations into the company’s ownership and financial ties, including concerns regarding its relationship with Asia Pulp and Paper. Domtar has defended its independence from APP and highlighted its separate governance structure. The report underscores Domtar’s lobbying activities at both federal and provincial levels, particularly in British Columbia where significant government contributions have been made.
Notably, Domtar and its subsidiaries received substantial government funding between 2020 and 2024, with a significant portion originating from provincial sources. Despite financial support, the report points out environmental violations, mill closures, and shrinking production footprints. Greenpeace emphasizes the need for Domtar to enhance transparency and accountability regarding public funds utilization.
In the face of market challenges and government support, Domtar acknowledges the importance of preserving jobs and innovative projects, with a commitment to return funds if projects are unsuccessful. The ongoing debate surrounding Domtar’s operations and financial backing underscores the need for greater transparency and public scrutiny in the forest industry.