The latest edition of the “Hot Button” report by forest protection group Canopy sheds light on how major fashion and textile brands are sourcing their materials. According to the report, there has been a significant shift toward responsible sourcing, with more companies avoiding wood pulp derived from endangered forests. Producers earning the highest environmental rating—known as the “Green Shirt”—now make up 71 percent of evaluated suppliers.

More than half of the world’s cellulosic fibre production now comes from verified low-impact sources, a drastic improvement compared to a decade ago. The traceability of wood-based raw materials has also reached record levels, with 97.5 percent now being trackable through the supply chain. This signals a notable increase in transparency and a stronger commitment to forest conservation.

The number of certified brands has risen sharply from just 65 to 550, indicating widespread industry engagement with sustainable sourcing. Despite this progress, Canopy emphasizes the urgent need to shift toward recycled cellulosic fibres and close-loop systems that reduce reliance on virgin forest resources.

Innovative companies across Europe are already pioneering technologies that turn textile waste into new fibres, offering a glimpse into the future of circular textile production. Experts agree that accelerating the use of recycled inputs will be critical to achieving long-term sustainability in fashion. While the industry has come a long way, the report underlines that the next chapter requires deeper investment and system-wide change.