California Transparency Act

The California Transparency in Supply Chains Act of 2010 was created to improve public awareness of how businesses address serious labor-related risks such as forced labor, slavery, and human trafficking. It requires certain companies that operate in or sell products within California to disclose the steps they take to identify and reduce these risks. The goal is to help consumers better understand the ethical conditions behind the goods they purchase and to encourage more responsible corporate behavior. In alignment with this legislation, Allbirds has developed a structured responsible sourcing system that focuses on protecting workers, ensuring fair labor standards, and reducing the possibility of exploitation throughout its global production network.

A key part of this approach is openness across the entire supply chain. Allbirds expects its manufacturing partners to communicate clearly and honestly about working conditions, including both strengths and areas needing improvement. Suppliers are also required to provide detailed visibility into their operations, which may include information about subcontractors and upstream production partners. By extending transparency beyond immediate suppliers, the company aims to create a clearer picture of how and where its products are made. This level of disclosure is intended to strengthen accountability and help ensure that ethical expectations are consistently upheld.

In addition to transparency, Allbirds relies on formalized requirements to guide supplier relationships. The company collaborates with a carefully chosen group of manufacturing partners that are expected to comply with local laws as well as internationally recognized labor standards. Before entering into production agreements, new suppliers must agree to contractual obligations that incorporate Allbirds’ Code of Conduct. These agreements specifically address the prohibition of forced labor, slavery, and human trafficking, ensuring that ethical responsibilities are clearly defined from the outset of the relationship.

Before any goods are produced, prospective factories must undergo a detailed on-site review conducted by independent third-party auditors. These evaluations are designed to assess whether facilities meet the company’s baseline expectations for safe and fair working environments. The review process generally involves speaking privately with workers, examining employment documentation, and inspecting workplace conditions to identify potential risks. Depending on the context, audits may be scheduled in advance or carried out without prior notice, allowing evaluators to gain a more accurate understanding of everyday operations. Risk levels associated with specific regions or suppliers may also influence how frequently these assessments occur.

If serious violations related to forced labor or human trafficking are discovered during an audit, they are treated as critical breaches with zero tolerance. In such cases, the supplier automatically fails the assessment, and production activities may be suspended. Resumption of business is only considered if corrective actions are taken promptly and meet agreed-upon expectations for resolution. This strict approach reflects the company’s position that human rights violations cannot be accepted under any circumstances.

Beyond enforcement, Allbirds emphasizes continuous improvement and long-term collaboration with suppliers. When issues are identified, structured corrective plans are developed to address underlying causes rather than superficial symptoms. The objective is to help suppliers strengthen their internal systems, improve oversight, and prevent similar problems from recurring. Progress is monitored over time, and follow-up checks are conducted to confirm that improvements are genuine and sustainable.

Employee education is another essential element of the responsible sourcing program. Teams involved in supply chain management receive training focused on identifying risks associated with forced labor and human trafficking. This ensures that staff members are better equipped to recognize warning signs, evaluate supplier practices, and make informed decisions that align with ethical sourcing principles.

Through a combination of transparency, strict evaluation processes, ongoing improvement efforts, and internal education, Allbirds works to maintain a supply chain that reflects respect for human dignity and responsible business practices. These efforts are intended not only to meet legal expectations but also to contribute to a more ethical and sustainable global industry.