California Transparency Act

Allbirds seeks to maintain a supply network built around ethical conduct, worker protection, transparency, and respect for human rights. The company recognizes that responsible production involves more than the materials and finished products that reach customers. It also depends on understanding the conditions under which products are manufactured and ensuring that people involved in the process are treated with fairness and dignity. Through its sourcing practices, Allbirds works to identify labor-related risks and encourage manufacturing partners to maintain safe and responsible workplaces.

Visibility throughout the supply chain is an important element of this approach. Knowing where products are manufactured and which organizations contribute to production allows the company to better understand potential social and labor concerns. Suppliers are expected to provide relevant information regarding their facilities, production activities, subcontractors, and other parties involved in the manufacturing process. This broader view helps Allbirds evaluate risks beyond its immediate business relationships and develop appropriate responses when concerns are identified.

Supplier selection is supported by clear standards and expectations. Manufacturing partners are expected to conduct their operations in accordance with applicable laws and recognized principles concerning worker rights, workplace safety, and ethical employment. Before production relationships are established, suppliers must agree to requirements that communicate the company’s expectations for responsible behavior. These commitments address areas such as the prevention of forced labor and human trafficking, appropriate working conditions, lawful employment practices, and respectful treatment of workers.

Establishing expectations at the beginning of a supplier relationship creates a foundation for accountability. Manufacturing partners understand that responsible conduct is an ongoing requirement rather than an optional practice. Formal agreements and supplier commitments provide a framework for discussing performance and addressing concerns when standards are not met. This structure also supports more consistent communication between Allbirds and the organizations responsible for producing its products.

Factory assessments are an important part of the company’s supply chain review process. Before a new manufacturing location is approved for production, the facility may be required to undergo an independent social compliance evaluation. External assessments can provide an objective perspective on workplace conditions and help identify areas that require attention. Reviews may examine employment records, labor management procedures, health and safety practices, facility conditions, and the treatment of employees.

Assessment methods can include several forms of investigation. Auditors may review relevant documentation to understand how workers are employed and managed, inspect physical areas of a facility, and evaluate workplace procedures. Private conversations with employees can also provide valuable insight because workers may identify concerns that are not immediately apparent through documents or facility inspections. Combining these sources allows assessments to provide a more complete understanding of actual working conditions.

Supplier oversight does not end after an initial assessment has been completed. Allbirds recognizes that conditions can change over time and that responsible sourcing requires continued monitoring. Supplier performance, geographic circumstances, industry-specific risks, and previous assessment results can influence the level of attention given to a particular facility. Ongoing reviews help identify new concerns, evaluate existing practices, and encourage manufacturing partners to strengthen their internal systems.

A risk-based approach allows resources to be directed toward areas where additional oversight may be most valuable. Facilities operating in regions with elevated labor concerns or suppliers with a history of performance issues may require closer monitoring or additional assessments. This approach recognizes that supply chain risks can differ significantly between locations and businesses and that effective oversight should respond to the circumstances of individual manufacturing relationships.

Forced labor, slavery, and human trafficking are treated as unacceptable practices. When credible indications of serious labor exploitation are identified, the issue requires prompt investigation and corrective action. Depending on the circumstances, Allbirds may pause production or business activity with a supplier until appropriate measures have been implemented. The purpose of such action is to protect workers and ensure that manufacturing partners address serious violations rather than allowing problematic practices to continue.

Corrective action is intended to produce meaningful improvement. Suppliers may be expected to identify the causes of a problem, establish appropriate remediation measures, and demonstrate that those measures have been implemented. Addressing the underlying reasons for a violation can help reduce the likelihood that similar concerns will occur again. Follow-up reviews may be used to evaluate progress and determine whether corrective steps have produced sustainable results.

Education is another important part of responsible supply chain management. Employees who participate in sourcing, procurement, supplier management, or related decisions need appropriate knowledge to recognize potential labor risks. Training can help team members understand warning signs associated with exploitation, evaluate supplier practices, communicate expectations, and incorporate human rights considerations into purchasing and production decisions.

Supplier communication also supports continuous improvement. Responsible sourcing is more effective when companies and manufacturing partners can discuss challenges openly and work toward practical solutions. Regular engagement can help suppliers understand expectations and provide opportunities to address weaknesses before they develop into more serious problems. Constructive relationships can encourage manufacturing partners to improve workplace systems while maintaining accountability for meeting established standards.

The company also recognizes that supply chain responsibility involves more than relationships between a brand and its direct factories. Production networks can include multiple organizations, locations, subcontractors, and service providers. Greater visibility into these relationships helps identify risks that might otherwise remain hidden further down the production chain. Encouraging suppliers to share relevant information therefore supports a broader understanding of how products are made and who contributes to their production.

Responsible sourcing also reflects the connection between business activity and the communities in which manufacturing takes place. Safe workplaces, fair employment practices, and respect for workers can contribute to healthier business relationships and stronger local conditions. By considering social factors alongside operational requirements, Allbirds aims to support a production model that recognizes the importance of people throughout the supply network.

Continuous improvement remains an important principle within this framework. Standards, risks, technologies, and expectations can evolve, meaning that responsible sourcing practices must also adapt. Reviewing supplier performance, updating training, conducting assessments, and responding to emerging concerns can help maintain effective oversight over time. This ongoing process allows the company to learn from experience and strengthen its approach as new challenges arise.

Through supply chain transparency, supplier standards, independent assessments, risk-based monitoring, corrective action, employee education, and ongoing engagement, Allbirds works to promote more responsible manufacturing practices. The objective is to create a supply network where ethical conduct and worker well-being remain central considerations throughout production. By continuing to examine how products are made and strengthening relationships with responsible partners, the company aims to support a supply chain that is more transparent, accountable, and respectful of human rights.