Canopy Report Tracks Progress In Next-Gen Fibre Adoption
Environmental organisation Canopy has released its Hot Button Progress Report 2026, highlighting continued progress among man-made cellulosic fibre (MMCF) producers while pointing to the need for greater adoption of alternative, non-forest feedstocks.
The 2026 update follows the 10th edition of Canopy’s Hot Button Report released last year. The organisation said the streamlined report will precede a comprehensive revision of its Hot Button criteria in 2027.
Canopy’s assessment uses a colour-coded “shirt” rating system to evaluate MMCF producers on their efforts to eliminate Ancient and Endangered Forests from their supply chains and increase the use of circular raw materials.
According to the 2026 report, 22 of 28 MMCF producers achieved Green Shirt status, taking their share to 79%, compared with 70% in 2025. However, the share of global MMCF production capacity represented by Green Shirt producers declined marginally to 53% from 54%, following company closures and industry consolidation.
The report also recorded growth in the availability of Next Gen fibres, which use alternative feedstocks such as recycled textiles, agricultural residues and certified bamboo instead of conventional forest pulp.
The number of Next Gen fibre product lines available in the market increased to 20 in 2026 from 16 in 2025. Chinese producers account for 12 of the 20 product lines.
Aditya Birla Maintains Strong Position
Aditya Birla retained a position among the top-rated MMCF producers in the 2026 assessment, following a three-way tie for the highest rating in 2025. Canopy noted the company’s significant market presence, with Birla accounting for more than 15% of global MMCF volume.
Birla Cellulose currently offers three products based on alternative feedstocks — Birla Viscose Ecosoft, Birla LIVA Reviva and Liva Reviva M. The company is also continuing research and pilot-scale trials involving different alternative feedstocks.
In December 2025, Birla Cellulose and Circulose announced a cooperation agreement aimed at advancing textile circularity and increasing the supply of fibres produced from 100% textile waste.
On conservation and biodiversity, Birla has identified more than 23,000 hectares for potential conservation contributions as part of its biodiversity strategy. The company is also working with First Nation communities in Canada on the protection of culturally significant Indigenous forest resources.
Canopy Founder and Executive Director Nicole Rycroft said the latest update showed that MMCF producers had increased their capacity to develop more circular fibre supply chains.
“Forest fibre supply is becoming less and less reliable every year because of climate change, changing regulations, and geopolitical uncertainties,” Rycroft said, adding that brands and producers needed to increase the use of Next Gen fibres to strengthen supply-chain resilience.
The report comes amid growing concerns over the impact of climate-related events, extreme weather, tariffs and geopolitical uncertainty on conventional forest-based fibre supply chains.
Canopy said the 2027 Hot Button Report will introduce revised assessment criteria following consultations with fibre producers, brands and other supply-chain stakeholders. The new criteria are expected to reflect developments in the MMCF sector over the past decade.
