Fashion has a forest problem. And many brands don’t even know it.

Every year, over 100 million tonnes of fiber are produced globally. A growing share of that comes from man-made cellulosic fibers (MMCFs) like viscose, modal, and lyocell. These materials can play an important role in the future of fashion, but when their feedstock is sourced from Ancient and Endangered Forests, the impacts are significant: pressure on biodiversity, increased carbon emissions, and the loss of some of the world’s most vital ecosystems.

The good news is that change is underway.

Through CanopyStyle, more than 580 brands have stepped up to help shift MMCF supply chains away from high-risk forest sources. Together, these brands are sending a powerful market signal: fashion cannot come at the expense of forests.  But as the sector moves from commitment to implementation, one thing has become increasingly clear — ambition needs infrastructure.

That is where Canopy’s collaboration with TextileGenesis comes in.

We’ve recently published a joint whitepaper with Canopy, Environmental Leadership Through Technology, that details how we’re working together to embed MMCF producer leadership ratings  directly into digital supply chain systems.

The problem: commitments without verification

Brands sourcing MMCFs face a specific challenge. The supply chain runs from forest to pulp mill to fiber producer to spinner to fabric mill to garment maker. At each stage, the connection to the original forest source gets harder to trace. Without visibility into which MMCF producer a brand is actually purchasing from procurement decisions become opaque.

Meanwhile, regulation is moving fast. The EU Deforestation Regulation (EUDR), entering into force from June 2026, will require proof that wood-derived commodities, including dissolving pulp used in MMCFs, are deforestation-free and fully traceable. The Corporate Sustainability Due Diligence Directive (CSDDD), phasing in from 2027, adds further obligations around environmental and human rights due diligence across supply chains.

What Canopy brings: the industry benchmark

Canopy created the Hot Button Report, the industry’s most comprehensive assessment of MMCF producer performance related to forest sourcing. It covers approximately 98% of global MMCF production and uses a clear, intuitive rating system: green shirts signal leadership , while yellow and red flag higher risk sourcing practices.

The latest report shows meaningful progress: 70% of MMCF producers now hold green or dark green ratings, representing 54% of global capacity. That’s a significant portion of the industry demonstrating low risk of sourcing from Ancient and Endangered Forests.

What TextileGenesis brings: proof at the transaction level

TextileGenesis tracks fiber journeys from MMCF producer to finished garment using our Fibercoin digital twin system. Each tonne of fiber receives a secure digital identity, which is recorded and reconciled at every stage of the supply chain. Today, the platform traces 4 billion garments across 300 brands and 22,000 supply chain roles, covering MMCFs, cotton, recycled synthetics, wool, cashmere, and linen.

By integrating Canopy’s Hot Button ratings directly into the TextileGenesis platform, we’ve made it possible for brands to see whether their MMCF supplier meets CanopyStyle requirements.

Why this matters now

This collaboration started with a pilot supported by Fashion for Good, testing whether Hot Button ratings could be built into a live traceability platform. The pilot proved successful, and TextileGenesis committed to onboarding MMCF producers that meet Canopy’s Green Shirt threshold.

For brands, this delivers a double assurance: sourcing decisions are aligned with Ancient and Endangered Forest goals, and every fiber transaction can be independently traced and verified. It’s one of the first instances of an NGO benchmark being hard-wired into a digital traceability platform.

The business case is clear. Brands that adopt this approach gain regulatory readiness ahead of EUDR and CSDDD enforcement, reduce reputational and legal risk tied to deforestation-linked supply chains, build consumer trust through evidence-based sustainability claims, and lower the operational costs of manual data collection and supplier audits.

Read the full whitepaper

The whitepaper covers the full scope of the collaboration: how the Hot Button Report works, how TextileGenesis embeds those benchmarks into a digital chain of custody, the business case for brands, and a practical 30-60-90 day roadmap for getting started.