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Canopy's Ten Years of Controversy

The global man-made cellulosic fiber(MMCF) supply chain has experienced whatCanopyreferred to as a dramatic transformation since the launch of the Hot Button Report—just one month before Donald Trump was elected as the 45th president of the United States. The 10th edition of the organization's tool for assessing MMCF sourcing appears to confirm this.

"Transforming the supply chain is definitely achievable," stated the founder and executive director.Nicole Rycroft. "It's happening."

The landmark edition evaluated 98 percent ofglobal MMCF production-including input from 30 producer-rating firms, utilizing Canopy's (now over ten years old) "shirt system." The findings indicate strong progress; almost 70 percent of producers are now achieving Green, Partial Dark Green, or Dark Green ratings—a "marked difference" from nine years prior.

Business-as-usual is no longer acceptable if we want to preserve essential forests and maintain a stable climate," Rycroft stated. "The leaders in the Hot Button are showing that investing innext gen solutionsnot only beneficial for the environment, but also essential for creating strong, low-carbon supply chains in order to satisfy brand requirements, reduce risks from fluctuating raw material availability, and ensure lasting business value.

For a quick review: The shorthand system categorizes the producers, according to Canopy's evaluation, based on their likelihood of sourcing fibers from ancient and threatened forests. This "shirt score" is determined out of a maximum of 40 points, referred to as "buttons." Producers can accumulate buttons for each genuine effort made to enhance their forest sourcing methods—such as implementing robust policies and funding cutting-edge, new-generation materials.

The color-coded system offers a quick evaluation of each producer's performance. The main ratings go from Dark Green for top industry performers (producers with 30-40 buttons) to yellow for those who are just starting out.CanopyStyle commitments(producers with 10-19 buttons). The lowest, Red-shirted, signifies known risk among supply-producers with nine buttons or fewer.

"The Hot Button Reportis an essential instrument in directing our MMCF procurement, assisting us in monitoring advancements and recognizing suppliers advancing cutting-edge innovation," said Michael Jønsson, procurement manager at Selected.BestsellerIt links our goals with specific sourcing approaches.

The 2025 rankings are headed byLenzingand Tangshan Sanyou, tied for first place with 34.5 buttons each, and then cameAditya Birlain second position with 34 buttons.

Other producers who have attained the Dark Green shirt designation includeJilin Chemical Fiber (JLC), Yibin Graceand Xinxiang Chemical Fiber; all three received 33 buttons. The main fiber sourcing tool identified two producers-Saolon (formerly Mitsubishi) and MI Demo-shift up from Light Green ("embracing" producers with 25-29 buttons) to Partial Dark Green shirts, each generating 25.5 buttons.

Yibin Gracelaunched the first recycled dissolving pulp mill in China, whileTangshan Sanyouinitiated a testing facility for the same technology. The Chinese chemical and fiber company furthered the development of next-generation lyocell as well. At the same time, JLC started commercial-scale production of itsReboocelcore fiber, composed of 70 percent FSC-certified bamboo and 30 percent recycled materialrecycled bamboo from furniture.

"These MMCF producers are preparing for the future, aware that circularity will be a key priority for fashion textiles," Canopy stated.

Xinxiang Chemical Fiberinitiated a direct textile-to-textile MMCF facility. TheBailu producer opened a juncao-meaning "mushroom" and "grass" in Chinese, indicating the dual agricultural purpose of the hybrid technology - plant as well.

"The Hot Button Report provides us with important understanding regarding forest impacts throughout our supply chain," saidMadelene Ericsson Ryman, sustainability business expert, raw material procurement, H&M Group. "The transparent scoring system and third-party audits assist our sourcing team in making informed choices."

Despite these "encouraging advancements," Canopy highlighted the ongoing challenges that are still limiting the expansion of next-generation MMCFs, including but not limited to: increased pulp expenses, inadequate order quantities, and unstable supply levels, among other issues.

A turning point year for traditional MMCF producers who are developing early-stage in-house next-generation production capabilities," the report states, emphasizing that brands must now commit and utilize these materials to support expansion. "We have observed that it requires an entire 'fashion village' to bring next-generation solutions to market within a system controlled by established infrastructure.

Launched in 2016, Canopy's Hot Button Report evaluates the top MMCF producers globally based on their performance in three critical areas: sourcing of raw materials, development of low-impact fiber alternatives, and transparency in the supply chain. The tool serves as a resource forCanopyStyle, the NGO's worldwide effort supported by more than 550 organizations dedicated to obtaining less environmentally damaging, recycled, and alternative fibers for textiles and packaging, with a primary focus on moving towards more eco-friendly viscose production.

A decade ago, there were no commercial next-generation MMCF products. Now, many next-generation lines are available—but the transition needs to speed up," the report states. Given that the industry is currently expanding under a wood-based system, as per Canopy—meaning more forests are being felled to satisfy increasing demand—there are likely challenges on the horizon. "With worsening forest fires, traditional MMCF supply chain issues are expected to worsen.

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