The outer "skin" of the lichen, the cortex, is composed of closely packed fungal hyphae and serves to protect the thallus from water loss due to evaporation as well as harmful effects of high levels of irradiation. In "Xanthoria parietina", the thickness of the thalli is known to vary depending on the habitat in which it grows. Thalli are much thinner in shady locations than in those exposed to full sunshine; this has the effect of protecting the algae that cannot tolerate high light intensities. The lichen pigment parietin gives this species a deep yellow or orange-red color.