Canopy Hot Button Report 2026 Tracks Progress on Next Gen Fibres
Canopy has released its Hot Button Progress Report 2026, highlighting progress across the man-made cellulosic fibre (MMCF) sector while calling for faster investment in Next Gen fibres.
The environmental nonprofit issued the streamlined report on 22 September 2026. It follows the tenth edition of the annual Hot Button Report released last year.
The 2026 update also prepares the sector for a full revision of the Hot Button criteria in 2027. Meanwhile, it highlights growing pressure on conventional forest-based fibre supply due to climate change and geopolitical uncertainty.
Green Shirt Producers Increase
Canopy’s Hot Button assessment uses a shirt colour rating system to evaluate MMCF producers. The system considers their efforts to eliminate Ancient and Endangered Forests from supply chains and their progress towards more circular feedstocks.
The 2026 update shows continued improvement across the sector. Twenty-two of 28 producers achieved Green Shirt status, taking the share of Green Shirt producers to 79%.
This represents an increase from 70% in 2025. The results indicate continued progress towards more responsible forest fibre sourcing.
Next Gen Fibres Gain Momentum
The report also highlights growth in Next Gen fibre development. These fibres use alternative feedstocks instead of conventional forest pulp.
Examples include recycled textiles, agricultural residues and certified bamboo. These materials can support efforts to build more circular fibre supply chains.
The number of Next Gen product lines on the market has increased from 16 in 2025 to 20 in 2026. Chinese producers account for 12 of the 20 product lines.
This growth points to increasing commercial activity around alternative fibre inputs. It also reflects the industry’s search for more resilient raw material options.
Climate and Supply Chain Risks Increase
Canopy says conventional forest-based fibre supply faces growing pressure. Forest fires, extreme weather, regulations, tariffs and geopolitical uncertainty are affecting supply chain reliability and costs.
Nicole Rycroft, Founder and Executive Director of Canopy, said:
“The Hot Button Progress Report 2026 update shows that MMCF producers have built real capacity for a more resilient, circular future,” said Nicole Rycroft, Founder and Executive Director of Canopy. “Forest fibre supply is becoming less and less reliable every year because of climate change, regulations, and geopolitical uncertainties. Brands and producers need to shift meaningful volume to Next Gen fibres in order to future-proof their supply chains. Economic modelling reinforces that acting now is a no-regret pathway.”
The organisation says brands and producers need to increase their use of Next Gen fibres. This shift could help companies respond to growing supply chain risks while supporting circularity.
New Hot Button Criteria Coming in 2027
Canopy plans to introduce a fully updated set of Hot Button criteria in 2027. The organisation will develop the revised framework following consultation with producers, brands and other supply chain stakeholders.
The new criteria will reflect developments across the sector over the past decade. The 2026 progress report therefore provides an interim view of industry performance before the next full assessment.
As the MMCF sector continues to evolve, the report highlights two parallel trends. Producers are making measurable progress, while climate and geopolitical risks are creating greater urgency around alternative fibre development.
