California Transparency Act

The California Transparency in Supply Chains Act of 2010 was introduced to give consumers clearer insight into how companies handle the risks of forced labor, slavery, and human trafficking within their supply chains. By requiring qualifying businesses that manufacture or sell goods in California to publicly share their efforts, the law helps individuals make more informed purchasing decisions. In line with this purpose, Allbirds has built a comprehensive responsible sourcing approach designed to protect workers, promote ethical labor practices, and actively prevent modern slavery and human trafficking across its global supply network.

At the center of Allbirds’ sourcing philosophy is a commitment to openness and accountability. The company expects its suppliers to communicate honestly about both successes and difficulties related to labor practices and operational standards. This includes full visibility into supply chains, such as sharing the names and locations of subcontractors and upstream partners. By encouraging transparency at every level, Allbirds aims to build trust and ensure that customers understand how the products they wear are made and the conditions under which workers operate.

Allbirds also places strong emphasis on formal agreements and ethical expectations. The company works with a carefully selected group of strategic suppliers that show respect for local laws and internationally recognized worker rights. New manufacturing partners are required to formally confirm, through binding contracts and adherence to Allbirds’ Code of Conduct, that the materials and processes they use comply with all applicable laws related to forced labor, slavery, and human trafficking in the regions where they operate. These contractual commitments help establish a clear baseline for ethical behavior and legal compliance.

Before any production begins, Allbirds requires new factories to undergo an in-depth onsite evaluation conducted by an independent, professional third-party social auditing organization. These assessments are designed to verify that facilities meet minimum standards for working conditions as outlined in the company’s Code of Conduct. Audits typically include confidential interviews with workers, reviews of employment records and policies, and direct observation of health, safety, and labor conditions on the factory floor. Depending on the situation, assessments may be announced or unannounced, and their scope is tailored to address country-specific and industry-specific risks.

Ongoing monitoring does not stop after initial approval. The frequency and depth of follow-up assessments are determined by factors such as regional risk levels and a supplier’s past performance. Issues related to forced labor or human trafficking are treated with zero tolerance. If such violations are identified, the assessment automatically fails. In these cases, Allbirds will halt production orders unless corrective actions are taken responsibly, quickly, and within a mutually agreed timeframe. This approach underscores the company’s firm stance that human rights violations cannot be overlooked or minimized.

Beyond monitoring and enforcement, Allbirds is focused on long-term improvement. The company maintains systems and internal resources to support suppliers in addressing identified gaps. Corrective action plans emphasize understanding root causes rather than applying surface-level fixes, helping suppliers build stronger management systems and accountability mechanisms. Progress is closely tracked, and improvements are verified to ensure meaningful and lasting change.

Education also plays a critical role in Allbirds’ efforts. Employees who are directly involved in sourcing and supply chain management receive training on recognizing and reducing the risks of slavery and human trafficking. This training helps ensure that internal teams have the knowledge needed to identify potential concerns, engage effectively with suppliers, and uphold the company’s ethical standards.

Through transparency, rigorous assessment, continuous improvement, and education, Allbirds strives to contribute to a more responsible and humane global supply chain. These efforts reflect the company’s belief that protecting workers’ rights is essential not only for legal compliance but for building a more sustainable and ethical future for the apparel and footwear industry as a whole.