Environment

The NAM is urging President Trump to reconsider the Biden administration’s misguided findings regarding new liquefied natural gas export permits, following the release of a Department of Energy study claiming that increased permit numbers would have negative effects on the nation.
 
What’s going on: The Department of Energy’s analysis, released Tuesday, holds “that ‘unfettered’ shipments of the fuel would make domestic prices rise … [and would] displace more renewables” (E&E News).

• However, the “report from Energy Secretary Jennifer Granholm is clearly a politically motivated document designed for an audience who believes no form of carbon-based energy is acceptable,” NAM President and CEO Jay Timmons said. “LNG exports play a crucial role in reducing emissions by providing cleaner energy alternatives to countries reliant on higher emission sources.”   

What the ban’s done: The result of the Biden administration’s moratorium—issued in January—on the issuance of new U.S. LNG export permits has been “chilled energy investment, costing the country manufacturing jobs and holding us back from achieving energy dominance on the world stage,” Timmons continued.

• “The DOE’s report claims to be concerned about security, but the actions of this administration on LNG only serve to incentivize Europe to purchase natural gas from Russia.”  

A popular, key energy source: U.S. LNG is far cleaner than Russian LNG (House Energy and Commerce Committee). Furthermore, an October study by the NAM and PwC found that U.S. LNG is a significant and crucial contributor to gross domestic product, as well as an important source of jobs and federal, state and local taxes.

• What’s more, Americans want to keep exporting it. In a March NAM poll of 1,000 registered voters, more than 87% said they believe the U.S. should continue to export LNG.   

The bottom line: “The data is clear: LNG exports are a driving force for economic growth and job creation in the United States,” Timmons concluded. “Halting LNG export licenses as suggested would threaten nearly a million jobs and undermine our nation’s economic stability. The NAM asks President Trump to end this political war on the energy manufacturers that power our economy, fuel job growth and help ensure America’s national security.” 

In its current form, the Environmental Protection Agency’s recent proposal to add specific per- and polyfluoroalkyl substances and PFAS categories to a database of toxic chemicals would place an unnecessary hardship on manufacturers, the NAM told the agency recently.
 
What’s going on: In October, the EPA published draft rules that would add 16 individual PFAS and 15 PFAS categories representing more than 100 individual PFAS to its Toxic Release Inventory, a list of potentially hazardous chemical release and waste management activities taking place in the U.S.

• Companies producing or manufacturing products with chemistries added to the TRI are required to complete and submit inventory forms each year for the chemicals they make and use over established limits.
• “The NAM believes this proposed rule will create unduly burdensome compliance requirements and increase costs for manufacturers and consumers as written,” NAM Vice President of Domestic Policy Chris Phalen said this month.

What should happen: The EPA should “adopt the following approaches to the proposed rulemaking”:

• Stay the proposal to give the public more time to comment on it.
• Revise the proposed PFAS and PFAS category additions to reflect “a meaningful baseline of scientific evidence” and ensure that “the scientific evidence justifying the listing[s] [is] supported by peer review and public comment.”
• List individually every PFAS added to the TRI and make each one identifiable.
• Narrow the group of PFAS listed as “chemicals of special concern” to reflect the scope of authority granted to the EPA by the fiscal year 2020 National Defense Authorization Act.

Why it’s important: “While the EPA estimates this proposed rule would result in up to 1,110 TRI reporting forms annually at an estimated cost of up to $6.6 million for its first year and up to $3.1 million for subsequent years, we anticipate the compliance costs to manufacturers will be significantly higher,” Phalen continued.

• If finalized as written, the rule will force manufacturers to hire additional workers and consultants, train employees on proper reporting processes, spend huge sums of money on testing and verifying results and much more.
• The result: “a costly drain on [manufacturers’] resources … [that] will lead to a rise in operational and production costs far above the EPA’s cost estimates for the proposed rule.”

If you ask the leaders at Hyzon what kind of company it is, the answer might surprise you. The business, which manufactures “high-performance hydrogen fuel cell systems,” doesn’t consider itself just a manufacturer.

Making things possible: “We are a clean technology company that makes it possible to provide emissions-free power to some of the most difficult applications out there,” said Chief Operating Officer Dr. Bappaditya Banerjee. “It just so happens we are starting with Class 8 and refuse trucks.”

• In September, the Bolingbrook, Illinois–based firm announced the start of production of its single-stack, 200-kilowatt fuel cell systems to power those heavy-duty hydrogen fuel cell trucks. Hyzon is the only U.S. producer of the single-stack 200-kilowatt fuel cell.
• The new system is an upgrade from the 110-kilowatt fuel cell assemblies that Hyzon used in its first-generation vehicles.
• “If we were to put together two 110-kilowatt fuel cells to get to 200 kilowatts, the single-stack system would be 30% lighter than two110-kilowatt systems, as well as 25% cheaper to produce,” Banerjee said.

A differentiator: The company aimed to scale up the power of the engine without also significantly scaling up the size—no easy task. So Hyzon developed a proprietary solution: its hybrid bi-polar plate technology.

• “Most [fuel cell] stacks are either metal or carbon, but ours are hybrid,” Banerjee explained. “By hybrid, we mean that the cathode—where the oxygen comes into the system—is carbon, while the anode side is metal. The carbon side is more corrosion resistant while the metal side is strong, rigid and easier to manufacture, which allows a compact design.”
• “It’s the structure of the plates and the unique 200-kilowatt, single-stack design that allowed us to make it small enough to fit under the hood of a truck,” added Hyzon Vice President of Global Engineering Ravi Desai. “What does this is the design combination of our Membrane Electrode Assembly, the bi-polar plates and the compact balance of plant,” he said, referring to the network of pipes, hoses and fittings necessary for the fuel cell stack to work.

Uses and range: Hyzon offers two different emissions-free, heavy-duty vehicle types for industrial and commercial use, including a refuse collection truck. The models boast driving ranges comparable to those of diesel-powered trucks.

• The Heavy Duty Class 8 Fuel Cell trucks can typically go 350 miles from full storage tanks to empty, while the Fuel Cell garbage trucks can do a full day of work (at least 1,200 trash bin lifts and 125 miles of driving range) on a full tank.
• The trucks take about 15 to 20 minutes to refuel with a fast-fill dispenser at 350 bar, the pressure of the hydrogen gas needed to fill the trucks.

A challenge: In the U.S., the only publicly available hydrogen fuel refilling stations are in California, restricting widespread adoption for now. Meanwhile, the cost of filling up can be high.

• To support the construction of stations around the country and lower prices, the Biden administration announced $7 billion in funding last year for regional clean hydrogen “hubs.”
• In addition, the Inflation Reduction Act created the 45V hydrogen production tax credit, designed to help jumpstart scalable and sustainable domestic hydrogen fuel production.
• The credit is not yet available to companies, however, as the administration works to issue final regulatory guidance. The NAM has worked tirelessly to ensure this guidance is as broad, flexible and fair as possible.

Good for everyone: Hyzon doesn’t want to be the only player in the hydrogen ecosystem. On the contrary, it welcomes competition for the good of consumers and the industry.

• “The number of people who have been able to provide something useful [in transportation] using hydrogen is so limited that the more of us who succeed, the more it allows for hydrogen to become a normal part of our infrastructure,” said Banerjee. “A rising tide lifts all boats.”

Lucid has already made one of the most energy-efficient cars on the market. Now the company is on a mission to strengthen supply chains for the critical materials powering its award-winning vehicles.

Supply chain warrior: The California-based electric vehicle manufacturer—whose 2025 Air Pure sedan is the first EV to achieve a milestone 5 miles of range per kilowatt of energy—recently reached an agreement with Alaskan mining exploration company Graphite One to purchase synthetic graphite for its vehicles’ battery packs.

• The deal, which goes into effect in 2028, is a crucial first step toward cementing a domestic supply chain of graphite, a mineral that makes up about half of every EV’s battery composition. EV batteries require both synthetic and natural graphite.
• “Today 100% of the graphite for batteries assembled in the U.S. comes from overseas,” said Lucid Motors Supply Chain Group Manager of Battery Raw Materials Michael Parton. “Building a robust domestic supply chain ensures the United States and Lucid will maintain technology leadership in this global race.”

Pandemic lesson: The global pandemic revealed the downside of depending on other nations for critical materials, and the importance of cultivating domestic sources instead.

• In 2020, “every company experienced major challenges when it came to shutdowns and global trade,” Parton said. “Having a domestic supply reduces production risk, accelerates response time and agility and lowers the need to carry higher levels of inventory.”

A midstream gap: When it comes to EV batteries and their supply chains, “much of the discussion is on localizing the bookends of the supply chain, the downstream battery production and the upstream mineral extraction,” Parton told us.

• Less discussed is the “midstream environment,” which comprises the precursor cathode active materials (P-CAM) and cathode active materials (CAM) stages. Materials used during these phases in the battery production process include critical minerals such as lithium, nickel and cobalt.
• The P-CAM market has been a difficult one to navigate, Parton added. For years, the P-CAM stage has been outsourced to countries with more cost-effective production. The problem: These countries also have less stringent environmental regulations than the U.S.
• “There’s limited investment announced [in the U.S.] in the refining and chemical conversion process at these stages, but it’s where the real need is,” Parton continued. “To promote localized sources of supply for mined and recycled minerals, there needs to be a domestic option for both P-CAM and CAM.” 

A bipartisan issue: Lucid’s advocacy for a strong domestic supply chain has won bipartisan support in Congress.

• “There’s something in it for everyone when it comes to efficiency,” said Lucid Motors Senior Manager of International and Trade Policy Emily Patt, citing the environmental and self-sufficiency benefits of a resilient domestic supply chain.

What’s next: Lucid is expanding its vehicle lineup beyond the Air and the vehicle’s four trim levels.

• By the end of 2024, the company is scheduled to start production of the seven-passenger Lucid Gravity. The company has also teased an upcoming midsize platform, which is expected to start production in late 2026.

The grand vision: “The pursuit of efficiency drives Lucid as a company,” Patt said. “We’re not just making zero-emission cars; we’re committed to making the best use of the world’s resources to maximize the benefits for electrification and the planet.”

With a new administration and Congress on the horizon, the NAM is signaling confidence in its ability to secure wins for manufacturing in the United States, highlighting both recent achievements and policy priorities moving forward.

“The NAM has always focused on what’s best for manufacturing in America, and our track record speaks to that,” said NAM Executive Vice President Erin Streeter. “Our approach is consistent because we know what it takes to get results.”

What we’ve delivered: With post-partisan engagement, the NAM has achieved historic policy wins across both recent administrations, including:

• Tax reform: The NAM’s advocacy helped shape the 2017 tax cuts, driving billions in savings that manufacturers have reinvested in jobs, innovation and facility upgrades.
• Regulatory certainty: The NAM has played a pivotal role in streamlining regulations, reducing compliance costs under the Trump administration and working to slow regulatory expansion during the Biden years.
• United States-Mexico-Canada Agreement: The NAM was a key advocate for USMCA, safeguarding U.S. jobs by ensuring fairer competition and greater access to key markets.
• Energy advances: NAM-backed policies have supported growth in domestic energy production, creating a more stable energy market.
• Infrastructure and CHIPS Act: The NAM was instrumental in securing the historic Bipartisan Infrastructure Law and the CHIPS and Science Act, both critical for modernizing the economy, bolstering national security and ensuring a reliable semiconductor supply.

“These wins demonstrate what we bring to the table,” Streeter said. “By staying focused on manufacturing’s priorities, we can partner effectively with the new administration and Congress to create and protect jobs and strengthen communities.”

Looking ahead: The NAM’s focus on core issues remains critical for keeping the sector competitive and resilient, Streeter continued. These issues include:

• Securing tax reform: The NAM’s “Manufacturing Wins” campaign aims to lock in key 2017 tax provisions that manufacturers rely on for stability and growth. “Tax reform has been a game-changer,” said Streeter. “Protecting that progress means more jobs and manufacturing-led growth across the country.”
• Regulatory certainty: The NAM is advocating for balanced regulations that support competitiveness. “Manufacturers thrive with clear, fair rules,” Streeter noted. “We’re making sure Washington understands the importance of regulatory stability—and the danger of excessive regulation.”
• Energy security: The NAM is working to secure reliable, affordable energy while fostering innovation in sustainability. “Energy security and grid reliability are top of mind for every manufacturer,” Streeter added. “We’re ensuring manufacturers can continue to innovate, grow and drive America forward.”

Bottom line:  The NAM remains focused on advocating for policies that strengthen U.S. manufacturing. “Our success is built on trust and influence,” Streeter said. “Our members know the NAM is a constant force, with the relationships and expertise to deliver, regardless of political changes.”

In related news, President-elect Trump has named campaign manager Susie Wiles as White House chief of staff (Reuters, subscription), a choice NAM President and CEO Jay Timmons called “a powerful move to bring bold, results-driven leadership to the White House from day one.”

President Trump’s first term delivered significant wins for manufacturing in the United States, from tax reform to a regulatory overhaul to new trade agreements. Now, as the president-elect gears up for a second term, we look back on the transformational achievements and the NAM’s role in shaping policies that revitalized manufacturing in the U.S.

“Rocket fuel”: President Trump took the stage at the NAM’s board meeting in September 2017, where he laid out his tax reform agenda, describing it as “rocket fuel” for the U.S. economy. This was no ordinary policy effort—it was a generational initiative that would reshape industry in the United States.

• The impact: The Tax Cuts and Jobs Act delivered a 21% corporate tax rate while instituting full and immediate expensing for capital investments, improved interest deductibility and provided other critical provisions for small manufacturers and the entire industry.
• As a result, manufacturers nationwide reported record optimism, expanded operations, hired more workers, increased wages and benefits and reinvested in their communities.

Regulatory certainty: Recognizing that excessive regulations were stifling growth, the Trump White House asked then-NAM Board Chair David Farr in the first half of 2017 to compile a report from NAM members on the regulations causing them the most harm. The NAM team worked closely with administration leaders to address these pain points, compiling a list of 158 regulations for reform, with an emphasis on regulatory predictability and simplicity.

• The impact: By the close of Trump’s first term, more than 90% of the NAM’s regulatory recommendations were addressed or nearing completion. This unprecedented relief helped manufacturers focus on growth, product innovation and expansion.

Stronger deals: The Trump administration kept manufacturers and the NAM at the table, forging a trilateral deal to strengthen manufacturing’s competitive edge.

• The impact: Thanks in large part to manufacturers’ persistent advocacy work with lawmakers on Capitol Hill, the United States–Mexico–Canada Agreement was signed into law, restoring trade certainty for the North American markets that support millions of manufacturing jobs in the United States.
• While the NAM continues to pressure Mexico and Canada to live up to their commitments, the agreement strengthened businesses in the U.S. by ensuring updated trade standards, bolstering protections for intellectual property and digital trade and enhancing cooperation among North American partners.

Energy independence: Under President Trump’s administration, the NAM advanced an all-of-the-above energy strategy that included expanded domestic energy production and efficiency efforts. The NAM partnered with the Environmental Protection Agency and the Department of Energy to promote practices that both protected the environment and advanced innovation for a sustainable future.

• The impact: As former Trump EPA Administrator Andrew Wheeler pointed out recently at NAM headquarters in Washington, the rollback of restrictive energy regulations and the decision to maintain workable standards empowered manufacturers to increase domestic energy production, which reduced costs and bolstered energy independence.
• This balanced approach allowed manufacturers to meet consumer demand, strengthen supply chains and make greater contributions to America’s economy and environmental stewardship.

Safeguarding American IP: Confronting unfair trade practices with China was another priority. In 2019, the NAM worked closely with the White House to secure the “phase one” trade deal with China, which was designed to strengthen protections for American IP and help level the playing field for manufacturers in the U.S.

• The impact: The agreement established enforceable trade standards with China, aiming to protect U.S. innovations and support American jobs.

Operation Warp Speed: As the COVID-19 pandemic unfolded, manufacturers were at the forefront of the response. The NAM and its members partnered with the Trump administration to secure essential operations activity to implement Operation Warp Speed, a public–private partnership that fast-tracked the development, manufacturing and distribution of vaccines.

• The impact: Operation Warp Speed delivered lifesaving vaccines in record time, saving millions of lives, ending the global pandemic and demonstrating the unequaled capacity of American innovation and manufacturing.

Dignity of work: To address the skills gap, the Trump White House created the American Workforce Policy Advisory Board, naming NAM President and CEO Jay Timmons a member. Alongside other manufacturing leaders, and with the support of the NAM’s workforce development and education affiliate, the Manufacturing Institute, Timmons worked with the administration to elevate manufacturing careers and expand access to training. In a key event, the NAM and Ivanka Trump, who received the Alexander Hamilton Award for her leadership in championing manufacturing, launched the Creators Wanted Tour in 2020 to inspire the next generation of manufacturers and close the skills gap.

• The impact: Creators Wanted became the largest industry campaign to build excitement about modern manufacturing careers, highlighting the industry’s high-tech, well-paying jobs and reinforcing its role in supporting the American Dream. The campaign helped shift parents’ positive perception of manufacturing careers from 27% to 40% and signed up more than 1.5 million students and career mentors to learn more about manufacturing careers.

Bottom line: “President Trump’s first term reshaped what’s possible for manufacturing in the United States,” said NAM Executive Vice President Erin Streeter. “As he prepares to lead again, manufacturers have the benefit of building on a strong foundation with the president-elect as well as the purpose and pride that the industry brings out in lawmakers on both sides of the aisle.”

At AO Smith, the name of the game is efficiency. Though the company produces an array of water heaters, boilers, storage tanks and water treatment and filtration equipment, one goal is the same for every product: It should do more with less. This is especially true for hydronic and water heating appliances as these are energy intensive.

“On average, water heating loads are 25–30% of a home or building’s carbon profile,” said AO Smith Corporate Vice President of Government, Regulatory and Industry Affairs Joshua Greene.

• “After space heating and cooling, water heating is the next largest energy load in a home or commercial building. If you’re concerned about your energy spend, using heat pump technology is the most efficient way in which to reduce the overall spend on those heating loads.”

Efficiency in action: Recently, one of the Milwaukee, Wisconsin–based company’s water heating products—the CHP-120 fully integrated heat pump water heater—was installed in a Hilton property in New Haven, Connecticut, the all-electric Hotel Marcel, which opened in 2022 in the former headquarters of the Armstrong Rubber Company. Unlike conventional water heaters, which generate heat directly, heat pumps use electricity to move heat around.

• Hotel Marcel is the sole U.S. hotel to earn the U.S. Green Building Council’s Leadership in Energy and Environmental Design Platinum status in a decade.

The differentiator: The CHP-120 is the only unitary (one-piece) commercial heat pump water heater on the market. Comparable items use a split system in which one part, the compressor, sits outside of the building.

• The design enables Hotel Marcel and other customers to put the entire unit inside in a single room and “get the benefit of taking moisture out of the air in that room, then get to use the hot water that’s in the tank afterward, for laundry and other uses,” Greene told us.
• “So, it’s essentially free hot water—and you’re bringing down the ambient air temperature and humidity, which helps offset energy that would have been needed to cool that area.”

Gaining popularity: Current heat pump water heater customers are mostly residential homeowners, but in the commercial market, the technology has been growing at a rapid pace, Greene continued, because the energy savings “go straight to companies’ bottom line.”

• “Many states now offer rebates to help offset the higher upfront costs of the technology. As a result, we’re starting to install commercial heat pump water heaters in restaurants, schools, [more] hotels, multifamily housing” and more.
• A single CHP-120 installed in an apartment building, for example, can support several apartments depending upon on-site conditions, Greene said.

Overcoming barriers: Of the millions of water heaters (gas and electric) sold each year by manufacturers in the U.S., fewer than 3% are heat pump water heaters, Greene said. The main reason: price.

• “The average all-in project cost of a heat pump water heater is from $3,000 to $6,000” in the residential market, he went on. From a residential standpoint, “the average all-in cost of a 45-gallon gas or electric unit is about $800. It’s that cost delta that’s been the main impediment—but they’re 300 to 400 times more efficient, so one will save you 70% on your bill every month.”
• In the commercial market, heat pump water heating project costs are much higher due to size and other variables, but the energy savings can be exponentially larger, Greene added.

Regulation changes: With state and federal regulations and rebates, incentivizing high-efficiency technologies, heat pump water heater adoption—which is already on the uptick—will likely rise in many states in the coming years, according to Greene.

• “Now with robust federal tax credits and home energy rebates, coupled with utility rebates, they’re slicing that $3,000 to $6,000 [price tag] in half, and in places like California, you can get 80% or more of the cost covered.”
• AO Smith expects to stay busy, Greene said with a laugh.

Coming up: What’s next for a company that, in its 150-year history, has been at least three different businesses—having gone from automotive-frame maker to energy sector steel product manufacturer to leading global water technology company?

• “You can certainly expect to see continued innovation,” said Greene. “Our company has transformed a few times over the past century, and we will continue to evolve, with a focus on water technology, while adhering to the guiding principles and values that the Smith family established 150 years ago.”

The EPA’s final rule setting national drinking water standards for PFAS should be vacated in its entirety, the NAM and two allies said in an opening brief filed in federal court Monday.
 
What’s going on: The NAM, the American Chemistry Council and U.S. chemical company Chemours asked the U.S. Court of Appeals for the D.C. Circuit to overturn the EPA’s rule, announced in April, which requires that municipal water systems nationwide remove six types of per- and polyfluoroalkyl substances from drinking water. Trade groups representing the water systems have also sued to overturn the rule.  
 
The grounds: The rule is unlawful and must be set aside for the following reasons:

• ​​​​The EPA used a deeply flawed cost-benefit analysis to justify the rule.
• The EPA conducted a woefully incomplete feasibility analysis that ignores whether the technology and facilities necessary for compliance actually exist.
• Critical parts of the rule exceed the agency’s statutory authority under the Safe Drinking Water Act and flout the act’s express procedural requirements.
• The EPA failed to consider reasonable alternatives or respond meaningfully to public comments that undercut its judgment.
• The agency “lacked sufficient data to regulate” HFPO-DA, one of the PFAS chemicals that falls under the rule.

Why it’s important: PFAS “are substances at the center of modern innovation and sustain many common technologies including semiconductors, telecommunications, defense systems, life-saving therapeutics and renewable energy sources,” according to the brief.

• The NAM and its co-petitioners “support rational regulation of PFAS that allows manufacturers to continue supporting critical industries, while developing new chemistries and minimizing any potential environmental impacts. But that requires a measured and evidence-based approach that the [r]ule lacks.”

What’s next: Briefing in this case will continue through the spring, with oral argument to follow and a decision from the D.C. Circuit expected in late 2025. 

 The Interior Department is seeking to close hundreds of thousands of acres of land in Wyoming to traditional and renewable energy development, a plan that would cut crucial natural resource development off at the knees (POLITICO Pro, subscription).

What’s going on: Though the Bureau of Land Management’s plan, released Thursday, scales back from previous iterations the acreage recommended for conservation, it still considerably “throttles back how much of the federally administered area’s 3.6 million acres is in play for different forms of energy development.”

• The final announcement, part of the BLM’s proposed Resource Management Plan for the Rock Springs Field Office, is tantamount to “pushing Wyoming off an economic cliff with nothing more than a tattered parachute,” said John Barrasso (R-WY), ranking member of the Senate Committee on Energy and Natural Resources. “This plan isn’t designed to manage Wyoming’s natural resources. It is designed to suffocate them. … [It] directly jeopardizes Wyoming’s economy and our way of life.”

What it would do: If approved, the blueprint would replace its 27-year-old predecessor document and prohibit drilling on nearly 1.08 million acres—almost twice the number currently off-limits to new oil leases.

• It would “also [exclude] 494,350 acres from wind and solar power development and [close] 536,018 acres for geothermal power projects.”

Why it’s important: The plan could reduce economic activity in Wyoming’s oil and gas sector by some $907 million each year and cost the state nearly 3,000 jobs, according to estimates by several energy groups (Cowboy State Daily).

The NAM says: “This latest move by the Interior Department undermines U.S. energy security by needlessly restricting access to available domestic sources of critical natural resources as part of an all-of-the-above energy future,” said NAM Director of Energy and Resources Policy Michael Davin. “We urge the agency to reexamine and revise its plan.”

With a name that means “love of forests,” Sylvamo has a built-in dedication to sustainability. And the Memphis, Tennessee–based paper company, which spun off from International Paper in 2021, lives up to its moniker.

A holistic approach: “We use the whole tree in the manufacturing of our products,” Sylvamo Chief Sustainability Officer James McDonald told the NAM. “We use the fiber from the wood to make our paper, and all the residuals—think of the sticky stuff in trees—we capture and use to generate energy.”

• This process supplies the company with approximately 85% of its global energy needs, according to McDonald.

Planting the world: Sylvamo, which produces well-known brands like Hammermill, Accent Opaque, Springhill and HP Papers, is committed to restoring and protecting forests worldwide.

• “Our entire business depends on the sustainability of forests,” McDonald said. “It turns out your third-grade science teacher was right—photosynthesis does work. The more trees we grow, the more we can clean the air and protect the environment.”

Big ambitions: Sylvamo has conserved, enhanced or restored more than 37,000 acres of forestland to date. It has set the lofty goal of reaching 250,000 acres of forestland by 2030.

• To that end, the company is supporting the Nature Conservancy’s work to create a healthy, resilient and connected Appalachian landscape in the U.S. and the World Wildlife Fund’s work to restore Brazil’s Atlantic Forest, while also working with individual landowners to enhance forest management practices in France.

Diverse sources: Sylvamo primarily sources local fiber to manufacture its products in Europe, Latin America and North America, a strategy that enables a smaller environmental footprint, McDonald said.

• “Most of the fiber is sourced very close to [each] mill, which supports our low-cost assets in each region and this global footprint advantage in those markets,” he added.

GHG goal: The company is committed to a greenhouse gas reduction goal of 35% from a 2019 baseline across all three emissions scopes, an ambitious goal that demonstrates a commitment to improve Sylvamo’s climate impact continuously, according to McDonald.

• A quick refresher: Scope 1 refers to direct emissions, Scope 2 to indirect emissions associated with the purchase of power and Scope 3 to indirect emissions produced by a company’s value chain.
• Above all, “we try to be efficient with the energy we do use so that we can use less to produce our products,” McDonald told us.

A vital commodity: Paper and paper products continue to “play a crucial role every day in people’s lives,” said McDonald—and they are some of the world’s most recyclable materials.

• Some 68% of paper in the U.S. was recovered in 2022. In some parts of Brazil, the percentage is about 60%, and in Europe, it’s near 80%, he added.

The last word: “Just think about it: We use paper for education, communication, entertainment and more,” McDonald pointed out. “Our product plays a huge role in society and has a good lifecycle story.”