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OUR ONGOING COMMITMENT

In 2025, we reached the midpoint of our 10-year sustainability strategy at ¹ú²ú×ÔÅÄ — a milestone worthy of celebration but also a moment to reflect on our progress and review our approach. Looking back, I’m inspired by how much our teams accomplished in the last five years. I’m grateful for our senior leaders who encouraged this journey and for the way ¹ú²ú×ÔÅÄ employees have truly embraced sustainability as a fundamental part of how we do business.

We have big ambitions and much still to do. But at the halfway point, it’s clear that our sustainability strategy is growing ¹ú²ú×ÔÅÄ’s positive impact in our communities and the world and strengthening our core business so that we can continue operating for generations to come. These are just a few of the recent highlights:

Through our focus on climate action as part of our 3 by 30 Sustainability Ambitions, we were invited in 2025 to join the Task Force for Corporate Action Transparency (TCAT) in pilot testing new guidance for carbon accounting. The guidance relied partly on an accounting framework that we defined and published in our Greenhouse Gas Inventory Principles in 2024. Our collaboration with The Nature Conservancy and our longstanding partnership with the American Forest Foundation also factored in the invitation.

We’ve also seen positive outcomes from our sustainable homes and rural communities ambitions. Multiyear partnerships with Clemson University and the University of Arkansas have generated new and innovative ideas for building with wood, and the THRIVE program we launched in 2023 to support our rural operating communities has grown to include three communities across the United States. In October 2025, we welcomed our newest community, Buckhannon, West Virginia, with a local event attended by elected officials, media and community leaders.

In our Business Alignment pillar, we’ve made significant progress integrating sustainability into key business processes and priorities. We developed annual Sustainability Statements to provide employees with a snapshot of their site-level sustainability performance and supported the integration of sustainability goals into business decisions, such as our ¹ú²ú×ÔÅÄ team’s 2025 rollout of new, renewable natural gas log trucks in Oregon.

Our Solid Foundation pillar supports everything we do and has continued to improve through our companywide focus on sustainability — from safety and talent development to environmental compliance and policies. Processes we implemented early in our strategy continue to help identify areas of strength and weakness and validate the importance of sustainability to business outcomes. In 2025, our Sustainable Forestry Initiative® (SFI) certification program successfully completed a rigorous audit cycle and added 10 additional sites to our Chain of Custody certificate, while our ongoing safety reboot continued to improve our overall safety system and performance.

The backdrop to all this activity was another important milestone in 2025: ¹ú²ú×ÔÅÄ’s 125th anniversary. Celebrations in our communities across North America provided many opportunities to highlight our sustainability value, including our long history of sustainable forest management. But they also served as reminders of all the work that went into building our sustainability reputation over decades. Our current strategy is just the next chapter in that story. It’s an honor to be part of it, and we look forward to continuing to share our progress in the years ahead.

Ara Erickson
Vice President, Corporate Sustainability

 

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Our 3 by 30 Sustainability Ambitions in the Words of Our Employees

 

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Maintaining Our Solid Foundation

For decades, we have delivered solid results in environmental stewardship, social responsibility a²Ô»å strong governance. To drive continued excellence in these areas, we follow a 10-year plan that ensures we review our performance and consistently identify and implement improvement opportunities. The plan structures our work into alternating phases of strategy reviews and ongoing improvements. Strategy reviews take place periodically and provide our teams with the time and direction they need to think holistically about significant process changes and other substantial improvements necessary to continue delivering strong results. Ongoing improvements are assessed annually for each program area to ensure any adjustments that have been identified and implemented by our teams continue to strengthen and improve our solid foundation.

We are committed to transparency in the reporting of our sustainability performance and do this by publicly sharing our performance metrics and alignment with ESG frameworks; providing robust content across our website; creating an annual Sustainability Highlights report; disclosing information to key ESG rating providers; and responding to various assessments and questionnaires.

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IMPROVING BUSINESS ALIGNMENT 

The business alignment portion of our strategy focuses on further embedding sustainability into our planning and everyday operations. This process ensures sustainability is considered during business planning, increases visibility into how our business goals and commitments impact sustainability outcomes, and allows our teams to see and celebrate their sustainability performance both locally and across our operations.

From more effectively considering sustainability outcomes during annual business planning to connecting sustainability performance to daily work, we have introduced several innovative approaches to embed sustainability deeply within our business processes.

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Business Alignment Highlights

In 2025, we continued supporting all our businesses in embedding sustainability considerations deeper into their regular planning processes and provided updates on the key actions and levers driving their sustainability performance. We also refreshed our existing communications materials to help site leaders and employees better understand and share their local environmental and social responsibility performance. In Phase 3 of our Business Alignment pillar, running from 2026 to 2030, we will continue working with each of our businesses to strengthen the awareness and execution of their key sustainability levers, equip employees with tools to understand and tell their local sustainability stories, and amplify business-specific sustainability wins across the company.

Wood Products

In 2025, our Wood Products business aligned with our 3 by 30 Sustainable Homes ambition to increase our presence at the International Mass Timber Conference. Members of our Sustainability team joined leaders from our Wood Products business to network, share and discuss the latest mass timber products, issues and trends with industry professionals from around the world. Our Sustainability team also joined a panel discussion about how sustainable forest management and mass timber products support the forest economy. In 2026, we will remain focused on expanding engagements beyond operational sites to ensure sustainability is further embedded in our sales, marketing and product development processes.

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In 2025, our ¹ú²ú×ÔÅÄ business integrated sustainability content into its first round of role-specific trainings, reinforcing to frontline employees how their responsibilities contribute to sustainability outcomes. In our Western ¹ú²ú×ÔÅÄ organization, a focus on staff engagement motivated team members to increase the number of volunteer hours they logged in our companywide giving portal by more than 35 percent. ¹ú²ú×ÔÅÄ also delivered a key first step toward the business-specific GHG-reduction goal it recently set by launching our first fleet of renewable natural gas (RNG) logging trucks in Goshen, Oregon. Ten trucks were purchased for initial deployment and are now actively hauling logs throughout the state. In 2026, the business will continue to focus on successfully executing its key sustainability objectives of protecting the environment, growing our people, engaging our communities and demonstrating strong governance.

Strategic Land Solutions

In 2025, our Strategic Land Solutions organization (formerly known as Real Estate and Energy, Natural Resources) continued to expand its positive impact through our Climate Solutions business. We had five forest carbon projects with new credit issuances or credits available for sale, executed 14 new renewable energy agreements, including our first wind lease agreement in the Southeast outside of North Carolina, and sold a conservation easement protecting 50,000 acres in Maine. Despite a challenging regulatory environment and choppy market conditions, our Mitigation Banking team continued to expand its impact by signing the first agreement to provide mitigation services on non-¹ú²ú×ÔÅÄ lands.

In addition, our team announced a joint venture to build a facility adjacent to our McComb lumber mill in Magnolia, Mississippi, that will turn lower-value logs and mill by-products into biocarbon for use in metals production. In 2026, we will continue to develop and scale our ability to deliver climate solutions to the marketplace and communicate the impact of that work to internal and external audiences.

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DEMONSTRATING POSITIVE IMPACT 

We know individuals and communities expect companies like ours to help solve some of the world's toughest and most pressing challenges — and we welcome that responsibility. Our 3 by 30 Sustainability Ambitions focus on three areas where we play an important role and can make a meaningful difference by 2030: climate action, sustainable homes and rural communities. We know we can’t solve these challenges alone, but our vast forests, diverse land base and essential wood products put us in a unique position to make a tangible and lasting positive impact. When we launched our 3 by 30 Sustainability Ambitions in 2020, we focused on defining success, exploring and developing new relationships and key partnerships, and piloting and testing initial ideas and actions. In Phase 2 (2023-25), we intentionally made fewer but more strategic investments of our time and resources, building on our early successes. Now in the third and final phase of our strategy, we are focused on accelerating and amplifying our progress to demonstrate real, measurable impact across all three of our pillars by 2030.

• Climate Action: We recognize that climate change presents an urgent threat to our world and that action is needed now to mitigate its worst impacts. We are committed to managing and adapting our forests — and the wood products that come from them — to provide climate mitigation.
• Sustainable Homes: We recognize that quality, attainable housing is in short supply in communities across North America. As an industry leader, we have the opportunity to leverage our products, partnerships and position to significantly increase the availability of high-quality, sustainable homes.
• Rural Communities: We recognize that barriers to economic and social prosperity can be difficult to overcome in rural communities across North America. We are committed to helping drive measurable results that ensure rural communities continue to be great places to live, work and do business.

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HOW DO WE MAKE SURE WE STAY ON TRACK? 

It starts with oversight and direction from the very top of our company and cascades through all levels:

• Our board of directors and its  oversee our sustainability performance and review our progress toward goals, including our response to climate change, emerging issues, key opportunities and new trends, at least annually.
• Our executive leadership team guides our strategy and keeps us focused on the most critical opportunities and needs.
• Our sustainability strategy steering committee, which includes cross-functional staff and business leaders, supports the implementation of our strategy by identifying opportunities, risks and external trends and providing recommendations to ensure optimal performance.
• The vice president of corporate sustainability leads the coordination and oversight of our companywide sustainability efforts, including our sustainability strategy, in collaboration with strategic and operational leaders across the company. Progress on our sustainability strategy is reported via quarterly updates and regular meetings with the CEO, sustainability steering committee, and our full senior management team.
• Our Sustainability and Corporate Communications teams provide structure and guidance for implementing our strategy, ensuring internal and external engagement, reporting on our progress and equipping our businesses, teams and employees with the tools they need to share our sustainability story with key stakeholders.