California Transparency Act

The California Transparency in Supply Chains Act of 2010 was established to provide consumers with greater visibility into how companies manage risks associated with forced labor, slavery, and human trafficking within their supply chains. By requiring businesses that manufacture or sell goods in California to disclose their efforts, the law helps individuals make more informed choices when purchasing products. In response, Allbirds has created a responsible sourcing program that seeks to protect workers, uphold ethical labor practices, and actively prevent modern slavery and human trafficking throughout its global supply chain.

Central to Allbirds’ approach is a commitment to transparency and accountability. Suppliers are expected to share information openly about both their successes and challenges in maintaining labor standards and operational practices. This includes full visibility into subcontractors and upstream partners, allowing the company to better understand conditions throughout the supply chain. By promoting transparency, Allbirds aims to build trust with consumers, ensuring they know how products are made and that workers are treated fairly.

Ethical standards and contractual obligations are also a key part of the program. Allbirds works with a select group of suppliers who demonstrate respect for local laws and internationally recognized worker rights. New manufacturing partners must formally agree, through contracts and adherence to Allbirds’ Code of Conduct, to comply with all applicable regulations concerning forced labor, slavery, and human trafficking. These agreements provide a clear framework for ethical conduct and legal compliance, establishing baseline expectations for all production activities.

Before production begins, new factories undergo comprehensive onsite assessments conducted by independent third-party auditing organizations. These evaluations are designed to ensure that facilities meet minimum standards for working conditions outlined in Allbirds’ Code of Conduct. Assessments typically include confidential interviews with workers, reviews of employment records and policies, and inspections of health, safety, and labor conditions. Depending on the situation, audits may be announced or unannounced and are tailored to address specific regional or industry risks.

Monitoring continues even after initial approval. The scope and frequency of follow-up assessments are determined by factors such as supplier performance history and regional risk levels. Any findings related to forced labor or human trafficking are treated as zero tolerance violations. In such cases, production is paused until issues are resolved responsibly and within a mutually agreed timeframe, reflecting Allbirds’ firm stance on human rights protection.

The program also emphasizes continuous improvement. Suppliers are supported with systems and resources to address identified gaps, focusing on root causes rather than temporary fixes. Corrective actions are closely tracked, and progress is verified to ensure lasting change. Employee training is another critical element, providing sourcing and supply chain teams with the knowledge to identify risks and engage with suppliers effectively while maintaining ethical standards.

Through these combined measures—transparency, rigorous assessment, continuous improvement, and education—Allbirds strives to foster a responsible and humane global supply chain. The company’s approach underscores its belief that protecting workers’ rights is essential not only for legal compliance but also for building a more ethical and sustainable future in the footwear and apparel industry.