Canopy Warns Wood Fibre Supply Chains Face Rising Risk as Forest Pressures Mount

ESG News
January 15, 2026
Category: Forestry
Region: International

Canopy and Finance Earth outline strategic pathways for brands and investors to reduce virgin wood exposure and strengthen supply chain resilience. A new research brief released during the World Economic Forum warns that global wood-dependent supply chains face mounting commercial and ecological risk as rising demand, climate impacts, and regulatory pressure push forests toward ecological limits. The brief, produced by environmental non-profit Canopy with Finance Earth, argues that business-as-usual sourcing of virgin wood exposes brands and investors to higher costs, supply volatility, and growing reputational and legal risk over the decade ahead.The analysis comes as Canopy works with more than 1,000 consumer brands representing over $1.2 trillion in combined annual revenue to reduce deforestation and accelerate the adoption of circular and low-impact alternatives across sectors where wood is a primary input, including textiles and packaging.

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