California Transparency Act

The California Transparency in Supply Chains Act of 2010 was established to provide greater visibility into how companies address risks related to forced labor, human trafficking, and other forms of exploitation within their supply chains. By requiring certain businesses operating in California to publicly disclose their efforts, the law aims to give consumers the information needed to make more informed and responsible purchasing decisions. In response to this framework, Allbirds has implemented a structured and proactive approach to responsible sourcing, focused on safeguarding workers, promoting ethical labor standards, and reducing the risk of modern slavery across its global operations.

A central element of Allbirds’ sourcing strategy is transparency. The company encourages open communication with its suppliers regarding working conditions, labor practices, and operational challenges. This expectation extends beyond direct manufacturing partners to include subcontractors and upstream suppliers, ensuring a broader understanding of how products are made. By maintaining visibility across multiple tiers of the supply chain, Allbirds is better positioned to identify potential risks and take appropriate action. This level of openness also supports accountability and helps customers feel more confident about the origins of the products they purchase.

In addition to transparency, Allbirds places strong importance on formal commitments from its suppliers. The company partners with manufacturers that demonstrate adherence to local regulations and internationally recognized labor standards. Before entering into a working relationship, suppliers must agree to comply with Allbirds’ Code of Conduct and confirm that their operations meet all applicable legal requirements related to forced labor and human trafficking. These agreements establish a clear framework for ethical behavior and create a foundation for long-term collaboration based on shared values.

To ensure compliance with these standards, Allbirds requires new manufacturing facilities to undergo comprehensive evaluations conducted by independent third-party auditors. These assessments are designed to verify that working conditions meet the company’s expectations. The process typically involves reviewing employment records, interviewing workers in a confidential setting, and inspecting the physical workplace to assess health, safety, and labor practices. Depending on the level of risk associated with a specific region or supplier, audits may be conducted with or without prior notice to ensure an accurate representation of conditions.

Monitoring continues after initial approval, with follow-up assessments scheduled based on risk factors and past performance. Issues related to forced labor or trafficking are treated with the highest level of seriousness. If such violations are discovered, the facility is considered non-compliant, and business activities may be paused until corrective measures are implemented. This approach reflects a strict stance on human rights and reinforces the expectation that all partners operate responsibly.

Beyond compliance, Allbirds focuses on fostering continuous improvement within its supply chain. When gaps are identified, suppliers are expected to implement corrective actions that address the underlying causes of the issue rather than temporary solutions. The company works to support these efforts by providing guidance and maintaining oversight to ensure progress is achieved and sustained over time. This commitment to improvement helps create more resilient systems and stronger accountability across all levels of production.

Training and education are also key components of the company’s approach. Employees involved in sourcing and supply chain management receive instruction on identifying potential risks related to labor exploitation and understanding how to address them effectively. This knowledge enables teams to make informed decisions and uphold the company’s ethical standards in their day-to-day work.

Through a combination of transparency, structured oversight, and ongoing development, Allbirds seeks to build a supply chain that reflects respect for human rights and responsible business practices. These efforts demonstrate a broader commitment to ethical production and contribute to a more sustainable and equitable global industry.