Hot Button Impact Report: From Risk to Resilience - Ten Years of Hot Button

The Transformation of the MMCF Supply Chain

In 2016, the sourcing practices behind Man-Made Cellulosic Fibres (MMCFs) such as viscose, rayon, and lyocell were largely opaque and rarely scrutinized. These materials, often marketed as “eco-friendly” and made from “renewable resources” like forests, were frequently sourced from the planet's most carbon-dense and ecologically critical forests. At that time, the supply chain lacked transparency, independent data, and a shared performance standard for responsible sourcing.

This situation has dramatically changed. Over the past decade, significant progress has been made in assessing the MMCF sector's supply chain, marking an unprecedented rate of change within the fashion industry.

71% of rated Man-Made Cellulosic Fibre (MMCF) producers have achieved Green Shirt status or higher, indicating steps taken to eliminate sourcing from Ancient and Endangered Forests and incorporate Next Gen inputs.

CanopyStyle brand partners, numbering over 550, have provided the economic incentives for MMCF producers to change their practices. This has led to a growing number of producers moving away from high-risk, high-carbon sourcing towards lower-impact and future-proof Next Gen alternatives.

The Hot Button Report, Canopy's premier resource for MMCF fibre sourcing, has been foundational to these efforts. It is used by hundreds of global brands to evaluate MMCF suppliers annually and now includes Zero Discharge of Hazardous Chemicals (ZDHC) ratings on chemical management.

The report's data analysis over nearly 10 years shows significant improvements in supplier transparency, sourcing policy uptake, and investment in Next Gen materials.

Key Takeaways as Canopy prepares to release its 10th edition of the Hot Button Report before COP30:

• The seismic changes that have already taken place within the global MMCF supply chain.
• Emerging market signals.
• The work still required to build resilience and meet climate and biodiversity goals in this growing fibre category.

From Scorecard to Market Signal: Tracking Change

The Hot Button Report evaluates MMCF producers on 25 performance criteria, including forest-sourcing risk, policy strength, traceability, Next Generation Solutions, forest conservation, and third-party audits. Scores are translated into a colour-coded shirt rating, from red (high risk) to dark green (leading performance).

Shirt Colour Key:

• 30-40 Buttons (Dark Green): Leading performance, low risk.
• 25-29 Buttons (Green): Improved performance, lower risk.
• 20-24 Buttons (Yellow): Newly Engaged & Acting.
• 15-19 Buttons (Light Yellow): Newly Engaged.
• 10-14 Buttons (Orange): Known Risk.
• 0-4 Buttons (Red): High risk of sourcing from Ancient and Endangered Forests.

Chemical Management:

• 7-8 Points: Engaged with ZDHC, strong chemical management.
• 5.5-6.5 Points: Engaged with ZDHC, participating in programs.
• 4-5 Points: Participating in ZDHC programs.
• 0.5-3.5 Points: Not Applicable or limited engagement.

Hot Button by the Numbers:

* 21 individual producers

These shifts reflect greater adoption of the Hot Button Report tool and increased engagement across the sector.

The Colour of Change: Majority of MMCF Producers Now Rated Green

In the early years of the Hot Button Report, most MMCF producers received Red or Yellow Shirt ratings, indicating elevated risk and limited transparency. By 2024, over 70% of producers assessed hold green or dark green ratings, reflecting improved performance and greater participation in the evaluation process.

Producers are increasingly adopting sourcing policies, participating in third-party audits, addressing high-risk sources, and increasing the use of lower-impact, Next Gen inputs. The use of FSC-certified wood inputs and investment in traceability systems have also grown.

Raising the Bar: Independent Verification and Cleaner Production

The Hot Button Report serves as a signal for action, underpinned by verifiable data from third-party audits that assess raw material sourcing and identify potential risks. These CanopyStyle audits are independently conducted and publicly available, ensuring performance ratings are evidence-based.

Currently, CanopyStyle audits cover producers in 11 countries and represent the majority of global MMCF output. Many companies regularly update their audits, fostering year-over-year accountability.

To Date:

• Over 35 CanopyStyle audits have been completed and made publicly available.
• Audited producers span 11 countries and account for more than 75% of the producers assessed in the Hot Button Report.
• Many companies now update audits regularly, creating ongoing accountability.

Since 2019, the Hot Button Report has incorporated data on clean production from ZDHC, covering chemical management aspects like chemical recovery, wastewater treatment, and air emissions.

These updates ensure the report accurately assesses environmental leadership. For producers, this provides clarity on expectations; for brands, it offers a more integrated view of fibre sourcing and manufacturing practices, simplifying supplier selection and mitigating risk.

Innovation Takes Root: Scaling Next Generation Solutions

A key focus is the transition from virgin forest fibre to Next Generation Solutions, which are fibres made from recycled textiles, agricultural residues, or other low-impact alternatives. The Hot Button Report includes criteria to reward producers investing in scaling Next Gen technologies.

While many fibre producers are still in the innovation and testing phase, the report highlights for brands where investments in lower-impact innovation are occurring and which producers are moving towards resilient, forest-free alternatives.

Industry Support for Conservation of Ancient and Endangered Forests

With 97.5% of global MMCF production now tracked through the Hot Button Report, a clearer picture of environmental leadership is emerging. The report has helped spotlight and incentivize producer action to protect ecologically significant forests.

This has included agreements to exclude over one million hectares of intact, carbon-rich habitat in Canada's Boreal and interventions in the Leuser Ecosystem. Producers have shifted procurement away from high-risk regions and supported protection for threatened landscapes.

The Hot Button framework has also fostered alliances between brands, suppliers, and NGOs, strengthening international calls for forest protection. In 2024, over three-quarters of rated producers cosigned a global appeal to governments for stronger biodiversity safeguards at COP16.

These actions are integrated into the report's broader assessment of environmental performance, demonstrating how sourcing decisions can drive both local impact and global influence.

97% of global MMCF production is now tracked through the Hot Button Report.

From Scorecard to Sector Signal

The Hot Button Report has evolved into a trusted reference for tracking environmental performance in MMCF fibre sourcing, bringing clarity to a previously opaque supply chain.

Sourcing teams use the report to assess risk and select preferred suppliers, while producers use it as a roadmap for strengthening practices and increasing transparency. The report contributes to a wider sector shift, accelerating tangible action.

Brands are increasingly setting 2030 targets to scale Next Gen fibre use and reduce reliance on virgin forest inputs. As MMCF demand has grown, the method of meeting this demand is crucial.

MMCF is seen as a key alternative to petroleum-based synthetics, but not all alternatives are equal. Virgin-forest-based MMCF is vulnerable to market volatility and supply-chain disruptions. In contrast, circular Next Gen production offers greater resilience by sourcing from recycled textiles or agricultural residues, reducing pressure on Ancient and Endangered Forests.

Water use is also a growing factor, with Next Gen inputs potentially reducing freshwater consumption compared to forest-based feedstocks.

As Canopy prepares for the 10th edition of the Hot Button Report, the signals are clear: the sector is moving towards a resilient, circular, low-carbon system powered by Next Gen solutions that keep forests standing.

As of June 2025:

• Twelve producers have launched commercial-scale Next Gen fibre lines (e.g., Lenzing, Aditya Birla, Sanyou).
• Four producers (Jilin Chemical Fiber, Bailu Group, Yibin Grace, Tangshan Sanyou) have launched their own in-house Next Gen MMCF and/or pulp capacity.
• Canopy estimates that Next Gen production over the next decade could divert about 34 million tonnes of textile waste from landfills.

What's Needed Next to Build a Resilient MMCF Supply Chain

The Hot Button Report shows that change is happening, but sustaining progress requires shared and concerted commitment.

• For Producers: Deepen traceability to the forest of origin, scale Next Generation fibres, and prioritize FSC-certified inputs.
• For Brands: Turn commitments into action by developing strong targets for Next Gen material adoption and integrating these fibres into supply chains. Use the Hot Button Report to inform supplier selection, mitigate risk, and align procurement with sustainability goals.
• For the Sector: Recognize that while gains are real, forest risk, data gaps, and growing fibre demand persist. Consistent follow-through and clear market signals are needed to reinforce the shift to lower-impact sourcing.

“We've seen what's possible when brands and producers galvanize around clear performance expectations. The Hot Button Report creates that common reference point for the viscose and MMCF value chain – and it's helping shape how decisions get made and forests get protected.” - Nicole Rycroft, Founder & Executive Director, Canopy

The 10th edition of the Hot Button Report, releasing in late 2025, will serve as a benchmark and a testament to the power of collective action. The next chapter will require deeper investments in Next Gen, stronger traceability systems, and conservation strategies embedded across the supply chain.

Hot Button Timeline: A Snapshot of Sector Progress

• 2016: Hot Button Report launched; maximum score 25 buttons. 0 Green Shirt Producers.
• 2017: Five new performance criteria introduced; report expands beyond top 10 producers. 2 Green Shirt Producers.
• 2018: 54% of global viscose capacity verified through CanopyStyle audits; first significant wave of Chinese producer engagement. 2 Green Shirt Producers (plus 1 Green-Yellow).
• 2019: First Partial Dark-Green Shirts awarded to Aditya Birla and Lenzing; Birla, Sanyou, and Lenzing launch Next Gen product lines. 4 Green Shirt Producers.
• 2020: Collaboration with ZDHC on chemical management; Hot Button Report becomes interactive online tool; chemical management criteria added; Collaboration for Sustainable Development of Viscose (CV) aligns Roadmap to 2025 with CanopyStyle; First full Dark Green Shirts awarded. 10 Green Shirt Producers.
• 2021: 12 producers testing or trialling Next Gen fibres. 13 Green Shirt Producers.
• 2022: Dark Green Shirts increase from 2 to 6; 93% of MMCF capacity under sourcing policies; Six established commercial Next Gen product lines. 17 Green Shirt Producers.
• 2023: 54% of global MMCF production comes from Green shirt producers; eight established commercial lines of Next Gen made with recycled textiles. 20 Green Shirt Producers.
• 2024: 97.5% of global MMCF production now covered by the Report; 71% of producers assessed earn Green, partial Dark Green, or Dark Green ratings; 78% of producers sign the biodiversity call to action ahead of COP16. 21 Green Shirt Producers.
• 2025: Stay Tuned!