Materials Impact Report: Forestry & Paper Edition, Q1 2025

Conservation, Renewables and Trade Policy Resilience Reshape Forestry Operations

This comprehensive analysis examines how forestry and paper companies are facing increased expectations to demonstrate ESG leadership, with growing scrutiny from investors, customers and regulators creating both strategic challenges and differentiation opportunities throughout the sector. The research examines how industry leaders are implementing innovative approaches to environmental stewardship, resource efficiency, and stakeholder engagement, necessitating sophisticated materiality assessment processes that balance commercial imperatives with broader ecological and social responsibilities.

The report additionally highlights how recent pulp and timber tariff fluctuations have disrupted sustainability initiatives for 51% of forestry companies renewables and trade policy resilience reshape forestry operations.

The report highlights International Paper's achievement in deriving 70% of mill energy from renewable biomass in 2023, establishing new industry benchmarks for operational decarbonisation. This energy transition not only reduces emissions but also enhances resilience against fossil fuel price volatility, demonstrating how sustainability initiatives can create both environmental and financial value throughout forestry operations.

This analysis reveals that International Paper has conserved over 732,000 acres of forestland through partnerships with the Nature Conservancy, representing a significant commitment to biodiversity protection beyond its immediate operational boundaries. Simultaneously, WestRock preserved 1,886 acres and planted 222,235 trees in 2023 via its conservation collaboration, enhancing water security across Georgia and Virginia watersheds while demonstrating growing industry recognition of double materiality considerations that extend beyond traditional financial metrics.

The report examines emerging best practices in sustainable forest management, with a particular focus on how companies are integrating biodiversity impact assessments into core business strategies. It analyses how these approaches are reshaping investment decisions, operational practices and stakeholder engagement throughout the forestry value chain. The financial implications of biodiversity enhancement are quantified through case studies that demonstrate how nature-positive approaches are increasingly translating into material financial advantages, including enhanced reputation, stakeholder trust, and operational resilience.

Looking toward future regulatory landscapes, the analysis identifies how proactive forestry companies are preparing for emerging reporting requirements under frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and the Taskforce on Nature-related Financial Disclosures (TNFD). Companies implementing comprehensive disclosure systems that address both environmental impacts and dependencies are demonstrating enhanced resilience against transition risks associated with evolving policy landscapes across forestry operations and supply networks.