Environmental Leadership Through Technology

March 12, 2026 — Canopy and TextileGenesis released a whitepaper today that explains their partnership and how it will help fashion brands and textile and packaging producers strengthen supply chain transparency and ensure their materials are free from Ancient and Endangered Forests. The collaboration combines Canopy’s environmental expertise with TextileGenesis’ digital traceability technology to help companies respond to a rapidly changing sourcing landscape — one defined by rising demand for wood fibre, mounting regulatory pressure, and increasing supply chain risk. As forests face growing strain and expectations for due diligence intensify, brands need tools that do more than signal intent; they need systems that can verify claims, reduce exposure, and support more resilient sourcing decisions.

While often overlooked, fashion has a significant impact on the world’s forests. Each year, more than 100 million tonnes of forest fibre are produced globally, with man-made cellulosic fibres (MMCFs) such as viscose and modal accounting for a rapidly growing share. These fibres are typically derived from dissolving wood pulp. When that pulp is sourced from Ancient and Endangered Forests, it can drive forest degradation, biodiversity loss, and increased carbon emissions. But the risk does not stop there. As global demand for wood rises across textiles, packaging, construction, and energy, pressure on a finite forest resource base is intensifying — making conventional wood-fibre supply increasingly exposed to price volatility, disruption, and competition for compliant supply.

At the same time, regulatory expectations are quickly evolving. The European Union Deforestation Regulation (EUDR), which will come into force for large companies in June 2026, will require companies to prove that wood-derived commodities — including dissolving pulp used in MMCFs — are deforestation-free and fully traceable. Shortly after, the Corporate Sustainability Due Diligence Directive (CSDDD), phasing in from 2027, will require companies to demonstrate robust environmental and human rights due diligence across their supply chains.

A new whitepaper released today by Canopy and TextileGenesis outlines how greater transparency and digital traceability can help companies meet these expectations while reducing risk to forests. In a business context where environmental risk is increasingly translating into financial risk, early action can help companies avoid disruption, strengthen supplier oversight, and build resilience into sourcing strategies. Companies that move first are better positioned to manage volatility, respond to investor scrutiny, and capture the opportunities that come with stronger environmental performance.

Canopy, a global solutions-driven environmental non-profit, created the Hot Button Report — the apparel sector’s leading benchmark assessing MMCF producer performance related to forest sourcing. TextileGenesis developed a digital chain-of-custody platform that allows brands to track and verify the MMCF producers within their supply chains.

Read the full report here. 

For more information, contact:
Mike Hudema, Communications Director, Canopy
mike.hudema@canopyplanet.org

About Canopy
Canopy is a solutions-driven environmental non-profit dedicated to protecting the world’s forests, species, and climate. Working with more than 1,000 global brands, producers, and innovators, Canopy drives supply chain transformation and scales Next Gen Solutions to reduce reliance on climate-critical forests. www.canopyplanet.org