Dark green is the most coveted color in sustainable fashion—not just for its aesthetic, but for the sought-after Hot Button Report “green shirt” scorecard, released annually by not-for-profit environmental champion Canopy. The designation recognizes and ranks companies that work to eliminate sourcing from Ancient and Endangered Forests and prioritize Next-Gen, circular low-carbon fibers in man-made cellulosic fiber (MMCF) supply chains.
For the fifth consecutive year in a row, Birla Cellulose—the pulp and fiber business of India-based Aditya Birla Group and a leading sustainability-focused MMCF producer—has achieved the Number One ranking in Canopy’s Hot Button Report 2024 with a dark green shirt.
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Birla Cellulose operates 11 sites for pulp and fiber manufacturing that apply environmentally efficient closed-loop technologies including recycled materials and enhanced conservation of natural resources. Its five global advanced research centers are equipped with state-of-the-art facilities and pilot plants, and the company continually invests in R&D to further develop and scale up the use of Next Gen Solutions to reduce impact on forests. Birla Cellulose’s fibers are made from renewable wood and are produced using a closed-loop process with significantly lower carbon emissions and lower resource consumption.
The go-to report
Canopy’s Hot Button Report is an essential resource for an industry striving to protect the planet. By assessing leadership of MMCF producers’ forest sourcing and Next Gen production, the report provides vital data needed for brands to make informed sourcing decisions. This includes producers’ traceability initiatives, use of FSC-certified fiber and support for conservation solutions.
The 2024 report assessed 28 out of 35 MMCF producers, representing 97.5 percent of global production capacity, according to Canopy. “Shirt rankings” range from no color (not yet assessed) to red (those at “high risk” of sourcing from Ancient/Endangered forests) through various shades of green (darkest green being “leading in CanopyStyle commitments”).
The report also comes at a critical time. While MMCFs represent only 6 percent of the global fiber market, according to Textile Exchange, demand for MMCF-based textiles has surged, so it’s increasingly urgent that fiber manufacturers treat forests respectfully. Overall, MMCF production increased almost half a million tons this year alone—from 7.4 million tons in 2022 to 7.9 million tons in 2023.
Unfortunately, many of the manufacturers in the MMCF surge have “red in their shirts,” according to the Canopy report, denoting unsustainable practices. Such red shirt producers have also enhanced their output capacity via mill consolidation and growth, putting Ancient and Endangered Forests at further risk. “Now more than ever,” states the report, “it is vital that Next Gen fiber solutions begin to displace forest fiber in MMCFs in a significant and accelerated way.”
Progress is on the upswing. Four producers advanced from green to partial dark green shirt status, and 71 percent of rated producers in 2024—representing 53 percent of global viscose, rayon, lyocell and MMCF textiles supply—earned green, partial dark green or fully dark green status, according to the Canopy report. This was down slightly from 54 percent in 2023, but up from 50 percent in 2021.
“Canopy and our brand partners congratulate the leadership of those producers who have invested significant effort into their sourcing and Next Gen R&D in a race to the top,” said Nicole Rycroft, founder and executive director of Canopy. “There are a few incumbents that continue to source from high-carbon regions, but 71 percent of MMCF producers, both large and small, are moving in a direction that meets brands’ needs and planetary targets. Brands now have more options than ever to partner with producers that align with their business goals.”
H&M Group is one such beneficiary. “The Hot Button Report continues to be a very important tool as we work to reduce the carbon and biodiversity impacts of our materials,” said Madelene Ericsson Ryman, sustainability business expert, H&M Group. “Since 2020, H&M Group has only purchased from green shirt producers. We’re particularly encouraged by the increased number of MMCF producers that are eliminating Ancient and Endangered Forests from the value chain along with the increased utilization of Next Gen materials [low-carbon, forest-friendly alternatives to virgin wood fiber].”
Birla Cellulose remains proud of its ranking and recognition for leading the collaborative effort for scaling up Next Gen solutions. “This prestigious recognition affirms Birla Cellulose’s unwavering dedication to enhancing sustainable wood sourcing practices, forest conservation, and maintaining transparency in the value chain,” said Mr. H.K. Agarwal, Managing Director, Grasim Industries Ltd., and Business Director Birla Cellulose.
To read Canopy’s 2024 Hot Button Report, click here. To learn how Birla Cellulose collaborates actively with its upstream and downstream partners to create a bigger and broader positive impact on the sustainability of its value chain, visit www.birlacellulose.com
