California Transparency

The California Transparency in Supply Chains Act of 2010 was implemented to promote greater transparency from companies operating in California. Its primary goal is to ensure companies disclose their efforts to address risks related to forced labor, human trafficking, and slavery within their supply chains. This law enables consumers to make more informed purchasing choices by providing clear insights into how businesses manage ethical risks in their operations.

In alignment with this law, Allbirds has developed an extensive Responsible Sourcing Program that prioritizes ethical labor practices and strives to eliminate risks of modern slavery and human trafficking. This program is built on the core belief that every worker involved in the production of Allbirds products should work in safe, respectful, and legal conditions. The company is committed to giving consumers visibility into how products are made and the individuals who contribute to their creation, fostering a sense of transparency and responsibility.

Transparency is a central value for Allbirds. The company expects suppliers to maintain open lines of communication about both successes and challenges related to labor conditions. Allbirds also extends its transparency expectations to include not only first-tier suppliers but also their sub-suppliers, demanding full disclosure of their identities and locations. This level of transparency enables Allbirds to better monitor and manage potential risks throughout its entire supply chain. It goes beyond mere compliance—transparency is seen as essential to building trust, promoting accountability, and ensuring ongoing improvements in supply chain practices. Customers can feel confident that Allbirds is actively working to improve the lives of those involved in producing their products.

Another cornerstone of the program involves the use of formal agreements with suppliers. Allbirds collaborates with a select group of strategic suppliers who respect local labor laws and adhere to internationally recognized worker rights. New manufacturing partners must agree to comply with Allbirds’ Code of Conduct through formal contracts, ensuring that they operate in accordance with laws prohibiting forced labor, human trafficking, and slavery in the countries where they operate. These agreements define expectations clearly and create a legal framework that supports ethical business practices.

Before placing any orders, Allbirds requires that new factories undergo a social audit performed by an independent, third-party organization. This audit assesses whether factories meet the company’s minimum standards for worker conditions as outlined in its Code of Conduct. The evaluation process includes confidential interviews with workers, document reviews, and inspections of health and safety practices within the facility. Audits can be announced or unannounced depending on the context and are informed by regional risk factors and industry-specific challenges to ensure thorough due diligence. Facilities located in high-risk areas or with a history of non-compliance are subject to more frequent assessments.

Allbirds has a zero-tolerance policy for human trafficking and forced labor. If these violations are detected during an audit, the factory will fail the assessment. In such cases, Allbirds will cease placing orders with the factory until the issues are rectified within a defined and agreed-upon timeframe. This strict approach underscores the company’s commitment to upholding human rights and ethical sourcing standards.

In addition to audits, Allbirds emphasizes the importance of continuous improvement in its supply chain. The company ensures that suppliers address any deficiencies identified during assessments and make long-term, sustainable improvements. Corrective actions must focus on addressing the root causes of the issues, with systems put in place to ensure ongoing accountability and compliance. All remediation efforts are closely monitored and verified to ensure that meaningful progress is achieved.

Training is an integral part of Allbirds’ Responsible Sourcing Program. Employees involved in supply chain management receive regular education on the risks of human trafficking and forced labor. They are provided with practical tools to identify and mitigate these risks, ensuring that ethical considerations are incorporated into both daily operations and long-term sourcing strategies.

Through its comprehensive efforts, Allbirds is committed to promoting responsible sourcing practices, strengthening the integrity of its supply chain, and contributing to the global fight against modern slavery and human trafficking.