1

Completion of CanopyStyle Third Party Verification Audits

1.1

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

(worth 2 buttons)

1.2

The company has published the results of the audit report, and has adopted a detailed action plan to implement
recommendations. The action plan is updated annually, in consultation with Canopy.

(worth 2 buttons)

1.3

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)

2

Contribution to Conservation Legacies

2.1

The company actively promotes its commitment to the conservation of Ancient and Endangered Forests,
including key forests regions, on its website and other media. It is a vocal advocate for conservation of Ancient
and Endangered Forests within relevant public forums, panels, and other venues.

(worth 2 buttons)

2.2

The company publicly supports ambitious international conservation targets, and actions required to meet them.

(worth 1 button)

2.3

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

(worth 2 buttons)

2.4

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

(worth 2 buttons)

2.5

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)

3

Innovation via New Alternative Fibers

3.1

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)

3.2

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)

3.3

The company has launched at least one NextGen product, available for purchase on a commercial scale.

(worth 2 buttons)

3.4

The company has targets and timelines in place for increasing the use of NextGen alternative fibres, as reflected
in CanopyStyle’s annual MMCF Producer NextGen survey and supplemental documents.

(worth 2 buttons)

3.5

Next Generation fibres represent at least 10% of the Company’s pulp use, by volume.

(worth 1 button)

3.6

The company is “green shirt” and is proportionally contributing to the collective goal of increasing man-made cellulosic fibre (MMCF) produced 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)

3.7

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)

4

Adoption of Robust Forest Sourcing Policy

4.1

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)

4.2

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

(worth 2 buttons)

5

Traceability, Transparency, and Sustainable Sourcing

5.1

The company has put in place a track and trace system that allows partners in the supply chain to trace the fibre used back to the forest of origin.

(worth 1 button)

5.2

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)

5.3

The company conducts due diligence and makes decisions to source based on an analysis of the risk associated with their suppliers, with sourcing to be later confirmed, and final risk levels to be assigned, by audit.

(worth 2 buttons)

6

Leaders in Supply Chain Shifts

6.1

The producer is proactively reaching out to Canopy to seek opportunities to advance solutions to reduce pressure on the world’s forests and meet new marketplace requirements. The producer inspires leadership with supply chain partners and competitors.

(worth 1 button)

6.2

Where virgin wood fibre is required as an input, the producer preferences sourcing from Forest Stewardship Council (FSC) certified forests, and increases the proportion of FSC certified fibre year over year.

(worth 1 button)

6.3

The company publicly supports Canopy’s ForestMapper and has used it to conduct a risk assessment of their supply.

(worth 1 button)

6.4

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

(worth 2 buttons)

7

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

7.1

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.
(Note: This is negative criteria that would lead to a reduction of up to 5 buttons. Action taken to address and eliminate risk will be reflected in the reduction of these negative buttons).


Chemical Management

C1

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 such as aligning policies and practices with Changing Market’s Roadmap and/or EU-BAT and/or being a ZDHC contributor. 

C2

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. 

C3

ZDHC Responsible Fibre Production Guidelines (Not yet ready for evaluation).

ZDHC Wastewater Guidelines – Evaluated in 2021 based on Clearstream and Detox.live platform reporting.

ZDHC Air Emissions Guidelines (Not yet ready for evaluation).

Points are awarded based on reaching the ZDHC foundational, progressive, or aspirational levels.

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 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 adopted new regulations recently that may affect import and export compliance.  

The 2022 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 meets the requirements of a robust verification framework. The audit standard and process were developed by Canopy, in partnership with Preferred by Nature, 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. 
  • 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 analyses 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 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 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, 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. 

New for 2022

The Hot Button criteria have been 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 are designed to clarify what the criteria are seeking to evaluate and make them easier to understand. The total number of buttons available to be earned has increased, from 39 to 40, and the weighting of the criteria has shifted slightly between the criteria. Please note that the number of buttons required to earn various shirt colours has not changed.  

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

Completion of CanopyStyle Third-Party Verification Audits: This section remains largely unchanged, however 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 has 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 include a clarification of timelines and targets and proportional contributions (by % of volume of production) moving toward the CanopyStyle Vision of 50% of all viscose being made from Next Generation feedstocks by 2030.  

Traceability and Transparency: This section has been 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 have simplified the way that this section is calculated to one criteria only.    

 

Chemical Use and Emissions – Adopting and Implementing ZDHC Guidelines 

The impacts of pollution from viscose processing are important to consider parallel to the impacts related to raw material sourcing. Since 2020, Canopy has provided the clothing sector with an integrated tool needed to assess the progress of MMCF producers in addressing both core risks. 

As part of our collaboration, the Hot Button Report includes ZDHC’s assessment of producers’ efforts to adopt and follow through with implementation of ZDHC’s MMCF V1.0 Guidelines, a standardized set of MMCF fibre manufacturing emissions control requirements for the global MMCF industry. The V1.0 guidelines, which are applicable only to viscose and Modal staple fibre, were released in 2020. The Hot Button currently reports only on the wastewater requirements in these guidelines. ZDHC guidelines for filament viscose, lyocell, Cupro, and acetate will be released in late 2022 as V2.0, so the current V1.0 guidelines are not applicable to companies only producing these materials and they are ineligible to earn points in this category.