Weyerhaeuser sets new strategic and ESG goals

Weyerhaeuser has established a new set of strategic goals designed to drive growth while also unveiling new environmental, social, and governance (ESG) standards. 

The Seattle-based forest products, building products, and timberlands company reported that it plans to grow its timberlands portfolio by $1 billion in investments and returns. Weyerhaeuser also plans to generate $100 million of adjusted EBITDA from natural climate solutions. The latter represents a fivefold increase from the company’s current standards.

Other financial goals include capturing $175 to 250 million of additional operational excellence improvements to maintain and further improve upon its performance while organically growing lumber production by 5% annually to serve growing market demand. 

"Over the past 18 months, we have improved Weyerhaeuser's portfolio of assets, strengthened our balance sheet and positioned the company for its next phase of sustainable growth and value creation," said Devin Stockfish, Weyerhaeuser president and CEO. "We intend to grow our company and cash flows, improve our competitive position, fully capitalize on increasing demand for our products and capabilities, and unequivocally establish Weyerhaeuser as a premier ESG investment opportunity.”

Stockfish noted that the actions will enhance the company’s ability to return capital to shareholders through dividends and share repurchases. 

Weyerhaeuser is targeting 5% annual growth in the sustainable base dividend from 2022-2025 driven by timberlands and natural climate Solutions growth opportunities and authorized a new $1 billion share repurchase initiative.

In regard to ESG goals, the company said that it is taking meaningful action to contribute to climate change solutions and further enhance Weyerhaeuser's reputation as a leading ESG investment opportunity.

The latest set of ESG goals include: 

• Growing the company's Natural Climate Solutions business to capitalize on opportunities associated with emerging carbon markets;
• Leading its sector by aligning carbon disclosures with the future Greenhouse Gas Protocol on Carbon Removals and Land Use;
• Releasing its inaugural carbon record, disclosing that the company is significantly carbon negative and stores billions of metric tons of carbon dioxide equivalents in its U.S. timberlands; and
• Setting a science-based greenhouse gas emissions reduction target that aligns with limiting global warming to 1.5 degrees Celsius and supports the pathway to net-zero.

Weyerhaeuser controls approximately 11 million acres of timberlands in the U.S. and manages additional timberlands under long-term licenses in Canada. The company is also one of North America’s largest wood products manufacturers.

The company generated $7.5 billion in net sales in 2020.