Canopy issues warning on tightening global wood fibre supply

Jangoulun Singsit

Wed, January 21, 2026 astatine 5:42 AM CST 2 min read

Canopy, which collaborates with implicit 1,000 brands to facilitate proviso concatenation shifts that support forests and beforehand low-carbon practices, has presented caller probe connected vulnerabilities successful planetary wood proviso chains. The nonprofit besides announced a $2bn blended concern level aimed astatine expanding sustainable textile production.

The caller probe brief, created successful concern with Finance Earth, outlines pressures affecting planetary wood proviso chains owed to clime impacts, regulatory changes, and accrued contention for wood resources.

The study identifies cardinal risks for businesses that trust connected wood products, including rising request for wood fibre successful aggregate sectors that present surpass what forests tin sustainably provide.

Further challenges highlighted see constricted wood availability resulting from onshore contention and ecosystem degradation, alongside stricter compliance requirements related to regulations specified arsenic the EU Deforestation Regulation and quality rights owed diligence obligations.

The probe recommends 3 approaches for companies:

1. Lessen dependence connected earthy wood by expanding the usage of circular and next-generation materials created from sources specified arsenic cultivation by-products, discarded textiles, and recycled materials, to abstracted maturation from the usage of superior forests and trim vulnerability to fluctuations successful terms and regulatory requirements.

2. Strengthen the information of the remaining wood proviso by making definite immoderate ongoing usage of caller wood is decently certified, afloat traceable, and evaluated for biology and assemblage impacts, including risks to past forests, endangered ecosystems, Indigenous Peoples, and section populations.

3. Prepare for imaginable disruptions by including wood-related risks successful script readying and accent investigating processes, arsenic good arsenic directing concern towards much robust sourcing methods and strategies.

Canopy laminitis and enforcement manager Nicole Rycroft said: “Forests are 1 of our top clime allies and cardinal to gathering planetary clime and quality targets, yet existent sourcing models and proviso chains are pushing them to breaking point. This little makes it clear: if companies and investors enactment locked into business-as-usual wood sourcing, they are signing up for higher costs, greater proviso vulnerability, and increasing regulatory and reputational risk. This exposes businesses unnecessarily, fixed determination is simply a wide exit ramp with Next Gen and alternate sources.”

Through the recently launched concern platform, Canopy volition impact authorities representatives, backstage assemblage participants, investors, and philanthropic organisations to enactment wider adoption of sustainable textile materials.