Completion of CanopyStyle Third Party Verification Audits

The company is actively completing or has completed its independent third-party verification audit, with desktop, mill or supplier site visits.

(worth 2 buttons)

The company has completed the current independent third-party verification audit, including the publication of the audit report and has adopted an action plan to make continuous
sustainability improvements.

(worth 2 buttons)

Canopy analysis of the third-party audit findings, and of the producer's actions on issues raised in the audit, results in low risk of sourcing from Ancient and Endangered Forests
and other controversial areas.

(worth 2 buttons)

Contribution to Conservation Legacies

* New Criteria

The company actively promotes its commitment to the conservation of Ancient and Endangered Forests on its website, naming key forests regions. In addition, the company
supports ambitious international conservation targets, and is an advocate for Nature Needs Half.

(worth 2 buttons)

The company communicates about its role in supporting forest protection in public forums, panels, etc.

(worth 1 button)

When prompted, the company has used its influence with supply chain partners and decision makers to support long-term conservation solutions.

(worth 2 buttons)

The company’s actions directly contribute to conservation planning and increased legislated protection in key Ancient and Endangered forest hot spots.

(worth 2 buttons)

* New Criteria

Some companies have extra obligation regarding conservation legacies, because their assets or previous investments are located in an area within, or in proximity to Ancient and Endangered Forests.

(worth 2 extra buttons)

Innovation via New Alternative Fibers

The company is an advocate of the circular economy and the use of alternative fibres, and is developing partnerships with brands, academics and ENGOs to advance the use of
new and existing alternative fibres.

(worth 1 button)

The company is investing in research and development for use of alternative fibres, and is at development, prototype or laboratory-testing phase.

(worth 1 button)

The company is investing in research and development for using alternative fibres, and is scaling up from laboratory phase and pilot scale (up to a few tons) to commercial scale.

(worth 2 buttons)

The company has timelines and targets in place for increasing the use of alternative fibres, such as leftover straw and post-consumer recycled clothing.

(worth 2 buttons)

* New Criteria

The company is proportionally contributing to the collective goal whereby 20% of all man-made cellulosic fibre (MMCF) produced (or 1.38 million tons) is made from Next Generation feedstock content, moving toward the CanopyStyle Vision of 50% of all viscose being made from Next Generation feedstocks by 2030.

(worth 2 buttons)

The company is aggressively increasing the commercial scale of innovative and alternative fibres available to customers, at a price that allows scalability.

(worth 2 buttons)

Adoption of Robust Forest Sourcing Policy

The company has formalized a policy commitment not to source from the world's Ancient and Endangered Forests and other controversial sources, is promoting it on its website, and requiring compliance from its suppliers.

(worth 2 buttons)

The produce's policy meets all the CanopyStyle criteria.*

(worth 2 buttons)

Traceability, Transparency, and Sustainable Sourcing

* New Criteria

The company prepared a risk assessment of their supply using the Canopy ForestMapper, the Dissolving Pulp Mill Classification, and other available information. The company shares this assessment with Canopy and engages to mitigate risks when required.

(worth 2 buttons)

The company has put in place a track and trace system to be used by its partners in the supply chain.

(worth 1 button)

The company has publicly shared their list of suppliers, and the name and location of all the pulp mills they are supplying from.

(worth 2 buttons)

* New Criteria

The company makes decisions to no longer source based on analysis of their suppliers, with sourcing to later be confirmed and final risk levels to be assigned by audit.

(worth 2 buttons)

Leaders in Supply Chain Shifts

The producer is proactively reaching out to Canopy to seek opportunities to advance solutions and meet new marketplace requirements. The producer is participating in annual CanopyStyle Summits in China, takes timely action, and inspires leadership with supply chain partners and competitors.

(worth 1 button)

The producer preferences Forest Stewardship Council (FSC) forest management fibre supply, and increases percent volumes of FSC fibre intake.

(worth 1 button)

The company publicly supports ForestMapper, Canopy’s global map of Ancient and Endangered forests and uses it consistently to assess the risk level of their fibre supply and to make responsible sourcing decisions.

(worth 2 buttons)

Associated with High Risk of Sourcing from Ancient & Endangered Forests and other Controversial Sources

The company is sourcing from Ancient and Endangered Forests or from a company associated with controversial sources in key Ancient and Endangered Forests such as the Boreal forests, coastal temperate rainforests or tropical forests of Indonesia. No action is being taken by the company.

(NOTE THIS IS A NEGATIVE CRITERIA THAT WOULD LEAD TO A REDUCTION OF 5 BUTTONS)

The company has been sourcing from Ancient and Endangered Forests or from a company associated with controversial sources in key Ancient and Endangered Forests such as the Boreal forests, coastal temperate or tropical forests of Indonesia. Initial action to remove this controversial sourcing is being taken by the company.

(NOTE THIS IS A NEGATIVE CRITERIA THAT WOULD LEAD TO A REDUCTION OF 2 BUTTONS)

The company has been sourcing from Ancient and Endangered Forests or from a company associated with controversial sources in key Ancient and Endangered Forests such as the Boreal forests, coastal temperate rainforests or tropical forests of Indonesia. Action has been taken, the sourcing issue has been resolved and the producer is contributing to conservation legacies.

(NOTE THIS WOULD LEAD TO THE ADDITION OF 1 BUTTON)


Chemical Management

The producer is addressing the pollution originated by the chemical substances used during the MMCF production process. It has joined a credible initiative that advances solutions on chemical management.

(worth 2 points)

The producer is implementing, for all of its sites, pollution control technologies to limit their impact, developing an approach for the recovery of substances used or generated during the production of MMCF.

ZDHC Responsible Fibre Production Guidelines
ZDHC Wastewater Guidelines (evaluated in 2020, worth 3 points)
ZDHC Air Emissions Guidelines

Criteria Explained

The 2020 Hot Button Ranking of viscose producers 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 viscose producers meet the requirements of a robust verification framework. The audit standard and process were developed by Canopy, in partnership with NEPCon, and is 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 Ranking reflects the growing commitment of the textile and fashion industry to look beyond simply mitigating risk. With the goals of making the viscose 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 and advocating for, and helping to secure conservation legacies; and
  • 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 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 ranking, to allow for their review. Together with this review period, Canopy suggested actions each producer could take to improve their score and standing. Hence, an opportunity was provided for viscose 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 as 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 2022 edition of the Hot Button, 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; and
  • 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.