Canopy issues warning on tightening global wood fibre supply

Core Insights - Canopy has launched a $2 billion blended finance platform to enhance sustainable textile production while addressing vulnerabilities in global wood supply chains [1][5] Group 1: Research Findings - New research highlights pressures on global wood supply chains due to climate impacts, regulatory changes, and competition for forest resources [2] - Key risks for businesses relying on forest products include rising demand for wood fiber that exceeds sustainable forest supply [2] - Challenges include limited wood availability from land competition and ecosystem degradation, along with stricter compliance requirements from regulations like the EU Deforestation Regulation [3] Group 2: Recommendations for Companies - Companies should reduce dependence on raw wood by utilizing circular and next-generation materials from agricultural by-products and recycled materials to mitigate price and regulatory risks [6] - Strengthening the security of wood supply is essential by ensuring that any new wood used is certified, traceable, and evaluated for environmental and community impacts [6] - Companies are advised to prepare for potential disruptions by incorporating wood-related risks into scenario planning and directing investments towards more robust sourcing strategies [6]