Button up to Protect Forests — Producer Progress Criteria

Criteria Explained

Canopy works to protect Ancient and Endangered Forests all over the world. As part of our work with the fashion, packaging, and publishing sectors we collaborate with brands and producers to ensure their supply chains are free of the world’s most critical forests and can help spark the production of low-carbon, circular supply chains.

Canopy’s work is integral to protecting the world’s rich biodiversity, acting on the climate crisis, supporting the advancement of Indigenous communities’ rights over their traditional territories, and protecting us from future pandemics. While this mission is bold, we recognize that there are areas of social and environmental justice that lie beyond Canopy’s focus.

As we work with our corporate partners to save the world’s most vital forests, we encourage them to seek additional resources to address other critical issues that fall outside our scope and expertise. This includes working with other specialized NGOs that are coordinating with governments and local organizations to make meaningful change and that have the necessary expertise on vital issues ranging from energy use, health and safety, working conditions, labour practices, and equity and discrimination, among others.

In addressing these risks, we encourage our partners to:

1.   Work with relevant third-party auditors.
2.   Contract independent methods of inquiry and assessment.
3.   Work with credible NGO partners in the field of concern.
4.   Insert contract conditions for suppliers to provide assurances.
5.   If unable to credibly assess, consider suspension of contracts until the issue is addressed.

We also encourage our partners to monitor regulatory systems in the countries that are relevant to their markets, as we note that some countries have recently adopted new regulations that may affect import and export compliance.

The 2023 Hot Button Report is conducted using the consistent application of the tools and standards of the CanopyStyle initiative, including the CanopyStyle Audit.

The audit uses a risk-based approach and requires verifiable evidence that wood and pulp used by MMCF producers meet the requirements of a robust verification framework. The audit standard and process were developed by Canopy, in partnership with Preferred by Nature, and are supported by the CanopyStyle Leaders for Forest Conservation and brands, retailers, and designers looking to implement their sourcing policies for man-made cellulosic textiles.

The Hot Button Report reflects the growing commitment of the textile and fashion industry to look beyond simply mitigating risk. With the goals of making the MMCF supply chain more sustainable, as well as institutionalizing the long-term solutions required for a stable future for the world’s Ancient and Endangered Forests, the ranking focuses on:

• Producers’ level of risk of sourcing from key areas of Ancient and Endangered Forests and other controversial sources.
• Producers’ leadership on advancing, advocating for, and helping to secure conservation legacies.
• Producers work to realize the commercial-scale production of fibres using innovative and alternative feedstocks, such as leftover straw, microbial cellulose, or post-consumer recycled clothing.

The assessment analyzes measurable actions by producers, and the methodology is transparent and replicable. Merit-point buttons are awarded based on the degree of completion of the elements contained in the above table.

Prior to the publication of this report, each producer was provided with a draft of their rating, to allow for their review. In addition to this review period, Canopy suggested actions each producer could take to improve their score and standing. Hence, an opportunity was provided for MMCF producers to gain more points (buttons), and acquire ‘shirts’ that signal better performance, indicated by a deeper shade of green.

In order to accurately reflect supply chain risk and threats to forests, producers that are known or confirmed by the CanopyStyle Audits to be using pulp that is at high risk of sourcing from Ancient and Endangered Forests and other controversial sources will show partially red shirt colours, even if they have been able to surpass a threshold of ten buttons.

We recognize the significant operational effort that is involved in achieving a full dark green shirt. In addition to exemplary leadership in accelerating Next Generation Solutions and advancing substantive on-the-ground conservation, all dark green shirt producers require deep corporate-wide commitment. It should be noted that starting in the 2025 edition of the Hot Button Report, the following additional criteria will be required of producers to achieve a full dark green shirt:

• The third-party CanopyStyle verification audit will need to confirm a low-risk result for their entire MMCF supply chain.
• If a producer had previously been sourcing or been linked to a risk of sourcing from areas of Ancient and Endangered Forests or controversial sources, a third-party CanopyStyle verification audit must confirm that these risks have been fully addressed and eliminated, which may include the implementation of adequate science-based conservation planning and FSC Forest Management.
• All forest product supply chains that the company is directly involved with, and all corporate entities within the company group, under one parent company, and/or associated with the MMCF producer must also be free of Ancient and Endangered Forests or controversial sources.

The Hot Button Report criteria were modified slightly in 2022, reflecting feedback from both brands and producers. Revisions were approved by the CanopyStyle Leaders for Forest Conservation in February 2022 and shared with all MMCF producers in May 2022 or earlier.

Most of the changes were designed to clarify what the criteria are seeking to evaluate and to make it easier to understand. The total number of buttons available to be earned increased, from 39 to 40, and the weighting of the criteria shifted slightly between the criteria. Please note that the number of buttons required to earn various shirt colours did not change.

Below is a summary of the criteria changes, according to each of the seven categories:

Completion of CanopyStyle Third-Party Verification Audits
This section was largely unchanged; however, it now clarifies that a detailed action plan is required to implement recommendations and that it is to be updated annually, in consultation with Canopy.

Innovation via New Alternative Fibres
This section increased from 9 to 11 buttons in total, reflecting an emphasis on rewarding efforts to decrease reliance on virgin fibres, which can reduce associated climate and biodiversity-related impacts. Changes included a clarification of timelines, targets and proportional contributions (by % of volume of production) moving toward the CanopyStyle Vision of 50% of all MMCFs being made from Next Generation feedstocks by 2030.

Traceability and Transparency
This section was revised to emphasize tracing back to the forest of origin and the button allocation has been reduced from 7 to 5 buttons, recognizing that most brands are prioritizing the use of independent traceability tools from fibre to garment.

Associated with High Risk of Sourcing from Ancient and Endangered Forests and other Controversial Sources
We simplified the way that this section is calculated to one criteria only.

Chemical Use and Emissions – Adopting and Implementing ZDHC Guidelines 

The Chemical Management Progress Criteria has been updated to align with the newly released ZDHC MMCF Guidelines V2.2 and ZDHC MMCF Guidelines Industry Standard Implementation Approach V2.2.

This means the sustainable chemical management section will gauge a producer’s performance through their engagement with ZDHC, and their results in chemical recovery, wastewater, and air emissions following the ZDHC MMCF Guidelines V2.2 chapters, norms and limit values.

In this year and next year’s Hot Button Report (2023 and 2024), the sustainable chemical management criteria will evaluate viscose staple fibre and modal staple fibre only and next year, points are awarded based on whether producers have reached the progressive level in each area (i.e., C2, C3, and C4). Other MMCFs such as viscose filament yarn, lyocell, acetate, triacetate, cupro will not be assessed this year and will receive a blank flask with a N/A sign.

From 2024 onwards, the sustainable chemical management scores will be based on the past year’s performance. For example, for the 2024 Hot Button Report, MMCF producers’ sustainable chemical management score will be based on their 2023 performance. This is due to the data needed to verify against the ZDHC MMCF Guidelines only being available from the end of the reporting year and beginning of the following year.

To learn more about how producers are assessed based on their ZDHC MMCF Module performance visit the following article: How is the facility’s performance on the ZDHC MMCF Module reflected on the Canopy Hot Button Report?