Hot Button Report / undefined
A Darker Shade of Green
Eighty per cent of the world’s MMCF (Man-Made Cellulosic Fibre) producers are rated using shirt colours in the Hot Button Report, with contributions from 28 producers globally. Of these 28 producers, 71% — consistent with 2023 — have earned ratings of green, partial dark green, or dark green shirts. This year has seen an increased level of commitment, with four producers who previously earned green shirts being upgraded to partial dark green shirts in recognition of their progress.
When analyzing total global fibre production, 97.5% of the total tonnage is now covered by the producers assessed in the Hot Button Report. The trend has shown a steady increase in the percentage of production from green shirt producers, rising from 50% in 2021 to 53% in 2022, and 54% in 2023. However, in 2024, the proportion of production from green shirt producers represents 53% of total MMCF output. This slight decline is attributed to consolidations (purchasing of other producers) and capacity expansions by red shirt producers, leading to a reduction in fibre volumes in the green shirt category.
Green Across the Globe
This year, for the first time, we have three producers tied for first place! Aditya Birla, Lenzing, and Tangshan Sanyou have all earned the highest number of buttons and dark green shirts, which shows that sustainability is a priority across the globe and in multiple markets.
China once again showed remarkable leadership, with Chinese MMCF producers Yibin Grace and Xinxiang Chemical Fiber Co. achieving the second-highest number of buttons due in large part to their deep commitment to scaling up Next Generation fibre solutions.
Other companies with notably high button counts and dark green shirts are Jilin Chemical Fiber, Eastman, and Acegreen. Due to concerted efforts for improvement, Zhejiang Huafeng moved from having a rainbow shirt to achieving a partial dark green shirt. Three other producers have moved from green to partial dark green, which shows a deepened engagement with the CanopyStyle initiative.
Growth and Consolidation
At a time when pressure on forests needs to be dramatically reduced, it is unfortunate that the annual production of forest-derived fabrics is increasing. Based on volumes disclosed to Canopy, MMCF production has increased by almost half a million tonnes over last year. While some of these increases have been from green shirt producers, the largest increase in capacity has been from a company with red in its shirt. This is largely due to the acquisition of other mills. Now more than ever, it is vital that Next Gen fibre solutions begin to displace forest fibre in MMCFs in a significant and accelerated way.
Next Generation Solutions — Collaboration and Deepened Commitments
One critical pathway to alleviating pressure on the world’s Ancient and Endangered Forests is to encourage the Man-Made Cellulosic Fibres (MMCF) sector to be leaders in Next Generation Solutions — low-carbon, forest-friendly alternatives to virgin wood fibres. In 2024, nearly all MMCF producers engaged with Canopy are either actively using Next Gen products or are working on R&D. While some smaller producers have faced challenges in overcoming technical obstacles with alternative fibre integration, they continue with testing, and leading producers (in collaboration with Canopy) are developing new tools and supply chain collaborations to boost quality, reduce costs, and foster transparency.
While the bankruptcy and sale of Renewcell caused disruption in the supply of Next Gen, there were many learnings for what it is going to take to scale Next Gen through the long value chain. We have seen numerous brands and producers step up their efforts, including stronger collaborations across brands, as well as between producers and brands, producers refining production to run new materials, and a couple of producers have bought the existing Renewcell product, CIRCULOSE®, on the market. Thanks to strong support by brands and a few producers, the company was bought and reborn as Circulose. Circulose is now rebuilding its team and will begin commissioning and full production in 2025. MMCF producers are also supporting other Next Gen innovators such as Sodra, Circ, Evrnu, and BlockTexx, and integrating their fibre into their products.
Canopy continues to play an enabling role in developing the market for new Next Gen products, and is currently supporting numerous projects that will help optimize production of early-to-market products throughout the value chain, reduce costs, and secure market pull-through from brands.
Some of the notable Next Gen highlights from 2024 include:
- Increase in higher-volume pilots for main MMCF product lines.
- Slight increase in use of Next Gen pulp, in part due to new, exciting in-house technologies.
- Yibin Grace announced construction of a new recycled cotton pulp facility: capacity of 1,500 tonnes by 2025.
- Xinxiang Chemical Fiber Co. invested in Juncao grass, as a substitute for wood fibre; other producers based in China are also using Juncao. Canopy is encouraging efforts to secure RSB certification of Juncao grass.
- Jilin increased Next Gen content in its product Jiracell from 20% to 30%.
- Producers are working hard to absorb price premiums on Next Gen products to facilitate brand uptake. This is a major challenge, but brands and producers are collaborating on this to achieve economies of scale.
- Two new commercial Next Gen product lines are here, developed by China Textile Academy (recycled cotton) and Shangdong Hongtaiding (dogbane).
Sourcing and Traceability
- Since the last Hot Button Report was published, six producers have either published or have begun their CanopyStyle Audits, in order to assess the risk of sourcing from Ancient and Endangered Forests.
- This year, 20 MMCF producers have increased their use of FSC Mix fibre. Notable examples are ENKA and E. Miroglio, who only use FSC inputs, and Yibin Grace, Xinxiang Chemical Fiber Co. and Formosa, who use over 90% FSC inputs. Canopy recognizes the importance of using FSC Mix for MMCF, although we continue to push for an increase in the use of FSC 100%, which is fibre that meets all of FSC’s principles and criteria. Since 2022, FSC 100% dissolving pulp has been available from LD Cellulose, and we are now seeing an uptick in the use of FSC 100% by MMCF producers across regions.
- In 2024, 14 producers reported having traceability systems across multiple MMCF lines, which allow brands and retailers to trace the fibre from MMCF facility to final garment. Producers are using internal systems (such as DNA markers), as well as external traceability providers to deliver this transparency to customers.
Conservation Actions
This year, we once again asked producers to engage with Parties to the Convention on Biological Diversity (CBD: a United Nations agreement that has been ratified by 196 governments, established with the aim of protecting life on Earth). Companies representing 78% of global MMCF production signed onto a letter to all member states, calling for “immediate leadership to strengthen — not weaken — the policies, incentives and legislation that will drive the necessary business action to halt and reverse nature loss by 2030.” In addition, 10 MMCF producers supported conservation projects in 2024, and five more reached out to local forest conservation organizations to learn how they can provide support in the future.
Looking to 2025 and Beyond
As always, Canopy will engage with the handful of producers that still have red in their shirts to encourage them to reduce sourcing risk, and have their sourcing verified through CanopyStyle Audits. With new brand partners in China and India, we are confident that the CanopyStyle initiative’s continued momentum will reach these producers and encourage improvement.
It’s important to note that currently the Hot Button criteria are designed to foster progress year-over-year. Thus, while some criteria remain fixed (i.e.: Criteria 4.1 — the producer has made a policy commitment to not source from Ancient and Endangered Forests — a static yes/no), others will reflect the expectation of continued progress over time, as we see several producers have done over the last few years.
2025 will mark the 10th edition of the Hot Button Report, and we will be reflecting on and celebrating the significant progress achieved in the MMCF sector during this last decade and these 10 reports, even as we collaborate with MMCF producers and global brands to catalyze further transformative change in the years ahead.
