Innovation is Taking Root, Canopy's Hot Button Impact Assessment Reports
Ten years ago, the sourcing practices behind man-made cellulosic fibers (MMCFs)—think viscose, rayon, lyocell—were 'largely out of view,' Canopy claims, tucked deep in global supply chains and free from industry scrutiny, heavily influencing the not-for-profit's Hot Button Ranking system that debuted in 2016.
'The supply chain was opaque; there was little independent data, no shared performance standard, and limiting understanding of what responsible MMCF sourcing should look like,' a new report from Canopy reads. 'This has changed dramatically.'
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Considering the MMCF sector's supply chain 'unprecedented' transformations over the past decade, the 'From Risk to Resilience: 10 Years of Shifting the MMCF Supply Chain' impact report takes stock of the 'seismic changes' that have occurred, the market signals emerging and the work still ahead.
'In the first years of the Hot Button Report, most MMCF producers fell into the Red or Yellow Shirt categories—ratings that point to elevated risk, limited transparency, and/or a lack of clear sourcing commitments,' the report reads. 'By 2024, the picture has shifted dramatically, with more than 70 percent of producers assessed now holding green or dark green ratings—a reflection of both improved performance and greater participation in the evaluation process.'
For context, these scores are given out of 40 potential 'buttons' and translated into a color-coded shirt rating system, ranging from red (high risk) to dark green (leading performance and lower risk). This 'visual shorthand' has become a way for procurement teams to identify preferred suppliers, Canopy said.
So much so, the Hot Button Report now tracks 97.5 percent of global MMCF production, up from around 75 percent in 2016—indicating broader industry engagement and transparency.
'We've seen what's possible when brands and producers galvanize around clear performance expectations,' Nicole Rycroft, founder and executive director of Canopy, said in the report. 'The Hot Button Report creates that common reference point for the viscose and MMCF value chain—and it's helping shape how decisions get made and forests get protected.'
While initially deemed far-fetched by most producers, per the report, next-gen production is growing. Though these solutions—spanning fibers made from recycled textiles, agricultural residues and other low-impact alternatives—have (largely) yet to launch commercial-scale products, the Hot Button Report directs brands to producers investing in lower-impact innovation rather than determining the solutions that producers should adopt.
As of this month, Canopy reported 12 producers have launched commercial-scale next-gen fiber lines 'with early leaders such as Lenzing, Aditya Birla and Sanyou.' Four producers—Jilin Chemical Fiber, Bailu Group, Yibin Grace and Tangshan Sanyou—launched in-house next-gen MMCF and/or pulp capacity.
As such, Canopy estimates that next-gen production over the next decade could divert about 34 million metric tons of textile waste from landfills, equivalent to seven Great Pyramids, 721 Titanic ships and over 3,300 Eiffel Towers.
While the report confirmed that 'change is happening, sustaining that progress will take shared and concerted commitment.'
Producers need to 'deepen traceability of materials all the way back to the forest of origin,' per the report, by scaling the use (and production) of lower-impact fibers and increasing FSC-certified inputs where wood is needed.
For the sector at large, this means understanding that gains—while good—are not guaranteed.
For producers, 'keeping forests standing' requires 'consistent follow-through' and 'clear market signals' reinforcing the shift to lower-impact sourcing, Canopy said. Brands, meanwhile, must 'turn commitments into action' by developing strong, measurable targets for the adoption of next-gen materials—and integrating those fibers into their supply chains.
The report also highlighted the growth of CanopyStyle. The number of brand partners jumped from '65 in 2016 to over 550 at present,' demonstrating growing market demand for responsibly sourced MMCF.
The ranking's credibility is underpinned by 'verifiable data, including third-party audits,' with over 35 audits completed and made publicly available across 11 countries, covering 'more than 75 percent of the producers assessed.'
'The results of nearly 10 years of MMCF producer engagement and data analysis tell a story of significant and meaningful change in supplier transparency, sourcing policy uptake, and investment in next-gen materials,' the report reads. 'While not comprehensively capturing all progress in the field, the Hot Button Report offers a distinct vantage point—one shaped by producer disclosure and brand engagement and informed by ongoing third-party audits.'
Canopy shared plans to drop its 10th Hot Button Report before COP30 during the last quarter of 2025.
That upcoming edition will not only benchmark the sector's standing but also serve as a 'testament to collective action,' with future demands including deeper investments in next-gen, stronger traceability and conservation strategies embedded throughout the supply chain.
'The path forward is clear,' Canopy said. 'The pace of progress will define the decade ahead.'
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Though these solutions—spanning fibers made from recycled textiles, agricultural residues and other low-impact alternatives—have (largely) yet to launch commercial-scale products, the Hot Button Report directs brands to producers investing in lower-impact innovation rather than determining the solutions that producers should adopt. As of this month, Canopy reported 12 producers have launched commercial-scale next-gen fiber lines 'with early leaders such as Lenzing, Aditya Birla and Sanyou.' Four producers—Jilin Chemical Fiber, Bailu Group, Yibin Grace and Tangshan Sanyou—launched in-house next-gen MMCF and/or pulp capacity. As such, Canopy estimates that next-gen production over the next decade could divert about 34 million metric tons of textile waste from landfills, equivalent to seven Great Pyramids, 721 Titanic ships and over 3,300 Eiffel Towers. While the report confirmed that 'change is happening, sustaining that progress will take shared and concerted commitment.' 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