California Transparency

The California Transparency in Supply Chains Act of 2010 encourages businesses operating in California to provide consumers with meaningful information about the measures they take to address slavery, human trafficking, and forced labor within their supply chains. The legislation is intended to improve visibility into sourcing and manufacturing practices so that consumers can better understand how companies identify labor-related risks and promote responsible production. Allbirds recognizes the importance of these principles and incorporates responsible sourcing practices into its broader approach to managing suppliers and protecting workers.

Allbirds has developed a Responsible Sourcing Program to support ethical labor practices throughout its manufacturing network. The program is based on the understanding that responsible production requires continuous oversight, clear expectations, supplier engagement, and attention to working conditions. The company seeks to work with manufacturing partners that respect human rights and provide workplaces that are safe, fair, and respectful. These expectations extend beyond basic legal compliance and are intended to encourage stronger standards throughout the supply chain.

Visibility into the supply chain is an important part of this effort. Allbirds works with suppliers to obtain information about manufacturing facilities, production activities, workforce conditions, and other relevant operational details. Suppliers are also expected to provide appropriate information concerning businesses involved further along the production process. Greater visibility helps the company understand how products move through different stages of manufacturing and makes it easier to identify areas where labor or human rights concerns may exist.

Maintaining accurate supply chain information also supports accountability. When a company understands where products are manufactured and which facilities participate in production, it has a stronger foundation for evaluating workplace practices. Supplier transparency can help identify potential weaknesses, encourage open communication, and provide opportunities for corrective action. It also gives customers greater insight into the steps being taken to promote responsible manufacturing and protect individuals involved in producing goods.

Supplier expectations are established through formal business relationships and ethical standards. Manufacturing partners are expected to follow applicable laws and uphold principles relating to worker rights, workplace safety, fair treatment, and responsible employment practices. Before production begins, relevant suppliers are required to acknowledge the standards established through contractual arrangements and the company’s Code of Conduct. These requirements communicate clear expectations concerning forced labor, human trafficking, slavery, and other unacceptable labor practices.

The approval of new manufacturing facilities involves additional review. Before a facility becomes an approved production partner, Allbirds may require an independent social compliance assessment conducted by an external organization. These evaluations are intended to provide an objective perspective on workplace conditions and supplier practices. Reviews can consider employment documentation, workplace health and safety, working conditions, employee treatment, and compliance with relevant labor requirements.

Assessment processes can involve several forms of verification. Documentation may be reviewed to understand employment practices and operational procedures, while physical inspections can provide information about workplace conditions. Confidential discussions with workers may also be used to gain a better understanding of their experiences and identify concerns that may not be visible through records or facility inspections alone. Combining different sources of information can provide a more complete picture of supplier performance.

Allbirds recognizes that supply chain risks are not identical across every location or manufacturing partner. Geographic conditions, industry characteristics, local labor practices, supplier history, and other factors can influence the likelihood and severity of particular risks. As a result, supplier oversight can be approached according to the circumstances associated with individual facilities. Higher-risk locations or suppliers with previous concerns may require additional monitoring, follow-up assessments, or closer engagement.

Forced labor and human trafficking are treated as serious issues within the responsible sourcing framework. Practices involving coercion, exploitation, slavery, or trafficking are inconsistent with the company’s expectations for manufacturing partners. When credible concerns are identified, the supplier may be required to take corrective measures before ordinary production activities can continue. Depending on the seriousness of the situation, production or orders may be temporarily suspended while the supplier works toward an appropriate resolution.

Corrective action is intended to address the underlying causes of a problem rather than simply resolve an individual finding. When a supplier is identified as having a labor-related deficiency, the company may work with that partner to establish an improvement plan. The plan can identify the issue, outline expected corrective steps, establish appropriate timelines, and provide a basis for evaluating progress. Continued engagement can help suppliers develop more effective practices and reduce the possibility of recurring problems.

Monitoring progress is an important component of corrective action. Simply identifying a concern does not guarantee that working conditions will improve, so follow-up may be used to determine whether agreed measures have actually been implemented. Supplier performance can be reviewed over time to evaluate whether improvements are effective and sustainable. This ongoing approach encourages manufacturing partners to treat responsible sourcing as a continuing responsibility rather than a one-time compliance exercise.

Employee education also contributes to the effectiveness of responsible sourcing practices. Team members involved in sourcing, manufacturing, supplier management, or related activities need to understand the potential risks associated with forced labor and human trafficking. Training can help employees recognize warning signs, understand reporting responsibilities, evaluate supplier information, and incorporate human rights considerations into business decisions.

Responsible sourcing also depends on communication between the company and its manufacturing partners. Open discussions can help identify operational challenges and create opportunities for suppliers to seek guidance when they encounter difficulties. Constructive supplier relationships can make it easier to address concerns before they become more serious while encouraging manufacturing partners to improve their own internal systems and workplace practices.

The company’s approach reflects the broader principle that ethical production requires attention throughout the entire supply network. Labor standards cannot be evaluated solely by examining finished products. The conditions under which materials are processed, products are assembled, and workers perform their responsibilities are also important considerations. By maintaining supplier expectations, conducting assessments, reviewing risks, and addressing identified concerns, Allbirds seeks to strengthen responsible practices across its manufacturing relationships.

Transparency remains central to these efforts because responsible sourcing depends on reliable information and accountability. By encouraging suppliers to disclose relevant manufacturing details and participate in assessments, the company can develop a better understanding of potential risks and identify opportunities for improvement. This process also supports greater confidence among customers and other stakeholders who want to understand how products are made.

Through its Responsible Sourcing Program, supplier standards, independent assessments, risk-based oversight, corrective action procedures, and employee training, Allbirds continues working to promote responsible labor practices throughout its supply chain. The company’s approach is focused not only on identifying unacceptable conditions but also on encouraging meaningful and lasting improvements. By maintaining greater visibility into manufacturing activities and engaging suppliers in ongoing improvement, Allbirds aims to support safer workplaces, respect worker rights, and reduce the risks associated with forced labor and human trafficking.