It looks to be canvas micarta. The micarta is layers of phenolic sandwiched between some sort of binder. Can be paper, linen, or like this one canvas. You get the strength of the phenolic and the looks/feel of the canvas.
Micarta is tough as nails, at least on fixed blade knives. My only concern would be the durability if any torsion were put on the blade. I prefer titanium or some other metal for my EDC knives because I know they won't suffer brittle failure.
Edit to add that it looks like the knife has a metal liner and the micarta is just on the outside. Looks to be a solid knife.