Canopy unveils wood-supply risk brief and 2bn dollar finance platform at Davos

At the World Economic Forum in Davos this week, solutions-driven environmental non-profit Canopy is announcing two initiatives aimed at reshaping how global industries source forest-based materials, as pressure on wood supply chains intensifies.

First, Canopy is launching a new research brief developed with investment advisory firm Finance Earth, examining structural vulnerabilities in global wood supply chains. Titled Paper Thin Comfort – Wood Fibre Risk in a Finite Forest World, the brief analyses how climate impacts, tightening regulations and rising cross-sector demand are converging to make conventional wood sourcing riskier and more volatile for businesses, particularly in packaging and textiles.

The research finds that demand for wood fibre across energy, construction, paper and apparel is outpacing what forests can sustainably supply. With credibly certified wood already heavily competed for, brands relying on virgin wood face rising costs, supply disruption and increased exposure to regulations such as the EU Deforestation Regulation. The brief outlines strategic responses, including diversifying feedstocks, scaling next-generation alternatives made from agricultural residues and recycled textiles, and strengthening traceable, certified sourcing.

“Forests are one of our greatest climate allies, yet current sourcing models are pushing them to breaking point,” said Nicole Rycroft, founder and executive director of Canopy. “Staying locked into business-as-usual wood sourcing exposes companies to unnecessary cost, regulatory and reputational risk.”

Alongside the research, Canopy is announcing the launch of a 2 billion dollar blended finance mechanism designed to accelerate the circular, low-impact production of next-generation textile materials. The platform aims to mobilise public and private capital to help scale sustainable textiles and alternatives in a major global textile market, with backing from governments, investors, brands and philanthropies.

The finance mechanism is positioned as a practical response to the risks highlighted in the new brief, providing an “exit ramp” for brands seeking to reduce dependence on virgin forest fibre while maintaining growth and supply security. Further details, including the host country and partners, will be shared under embargo ahead of the official launch, with an in-person event scheduled in Davos on January 21.

Together, the two initiatives underscore a growing shift among brands and investors: treating forest risk not as a peripheral sustainability issue, but as a core business and sourcing challenge.