Reducing the Dependence of the Clothing Industry on Endangered Forests in Canada & beyond

The Social Innovation

Magnitude of the Problem, and its Root Causes

The clothing industry has emerged as a driver of forest loss and degradation- and with it a major contributor to climate change and undermining the rights of traditional communities. 

80,000 acres of biologically diverse habitat is lost every day. More than 20% of carbon emissions are due to logging of high carbon forests. Indigenous and traditional communities’ cultural and physical well-being is eroded by industrial logging for rayon, viscose, modal and trademarked fabrics.

During their participation in the Fabric of Change Globalizer co-created by Ashoka and Laudes Foundation (formerly C&A Foundation) in 2017, the Canopy team highlighted the following key factors in the clothing industry contributing to forest loss and degradation:

• Unsustainable consumption patterns - for example, an average American buys 70 pieces of apparel/year. We buy 400% more clothing today than we did 20 years ago.
• Increasing demand for wood-based fabrics (rayon, viscose, modal and trademarked fabrics) due to their performance and competitive cost.
• Hidden cost – Viscose’s impact on forests is a classic externality. The cost does not show up on apparel price tags.
• Current lack of sustainable alternative fabrics that meet brands' quality, reliability and cost criteria.
• Local communities often lack the political power to protect their forests and traditional lands.

Based on their systems change analysis, the Canopy team made it their mission to transform the fashion industry’s impact on forests by eliminating the use of controversial and endangered forest sources in viscose and rayon production. At the same time, they worked to catalyze commercial-scale production of circular economy alternatives, such as recycled textiles and agricultural residues like straw. 

Strategy to Catalyze a Network of Changemakers towards the Targeted Mission

The strategy to change the clothing industry's supply chain from using endangered forest sources to circular economy alternatives was to work on making it a competitive advantage for companies to source and produce sustainably.

Some of the tactics they deployed towards the mission as a part of the strategy include:

1) Involving a Critical Mass of Committed Companies (Brand Partners), and Co-creating a Leaders Working Group

950 brands launched formal commitments to eliminate use of fabrics that contain endangered forests +/or controversial fiber. CanopyStyle brand partners include H&M, Inditex, Levi’s, C&A, Zara, Aditya Birla and Unilever.

These brands represent $2 Trillion USD in collective annual revenue and have significant supply chain influence. The majority of brands have commitments to support development of alternative fiber viscose. 

Canopy has been working to convene a select Leaders Working Group of “activist” clothing brands to drive this ambitious agenda with viscose producers and solutions technology enterprises.

2) Collaborating with Brands, Investors and Governments to Craft a Value Proposition for Producers to get Involved in the Transition

Viscose producers have structural barriers to overcome when moving to circular fiber inputs. They: 

• Are heavily invested in mills that rely on forest fiber.
• Historically rely on sourcing significant volumes of wood.
• Have developed deep expertise pulping trees into viscose of consistent quality.
• Often have vertically integrated operations and long-term wood supply contracts.

To address this, the Canopy team has been collaborating with brands, investors and governments to craft a value proposition for the Producers to adopt circular Next Gen Solutions:

• Brands agreed to develop direct or long-term relationships with producers that lead on next-gen solutions. They also agreed to pay more for first-to-market viscose products.
• Producers maintain market access and gain market share, and establish long-term fiber agreements with brands, farmers and municipalities for straw and recycled clothing.
• Government and investors enable producers to establish new circular economy infrastructure with dedicated funds, tax incentives and other policy incentives.

Based on these efforts, so far:  

• With the help of supporters and conservation allies, Canopy has played a pivotal role in securing large-scale conservation gains in 39.2 million acres of Ancient and Endangered Forests in Indonesia, Canada’s Boreal Forest, and North America’s Temperate Rainforests.
• 38 Next Gen Innovator Partners have formal signed policies with Canopy.
• 29 Man-made Cellulosic Fiber Producers have formal signed policies with Canopy to end sourcing from critical forests.
• 951 brands with a combined annual revenue of over USD 2 trillion are collaborating with Canopy to scale these low-impact alternatives and transform global supply chains for forest protection and climate action.