California Transparency

The California Transparency in Supply Chains Act of 2010 was introduced to improve clarity around how companies operating in California address risks associated with forced labor, human trafficking, and slavery within their supply networks. The purpose of the legislation is to give consumers better insight into corporate practices so they can make more informed choices about the products they purchase and the ethical standards behind their production.

In alignment with these expectations, Allbirds has created a structured Responsible Sourcing framework focused on safeguarding labor rights and promoting ethical working conditions throughout its supply chain. The program is built on the belief that every individual involved in producing goods should be treated fairly, work in safe environments, and be protected under lawful employment conditions. It also reflects a commitment to ensuring that customers have visibility into how products are made and the standards applied throughout the manufacturing process.

Transparency serves as a foundational element of this approach. Suppliers are encouraged to openly communicate both strengths and areas needing improvement regarding labor practices and workplace conditions. In addition, Allbirds seeks visibility beyond immediate manufacturing partners by requiring disclosure of lower-tier suppliers, including their identities and geographic locations. This extended visibility helps create a clearer understanding of the entire production network and supports stronger oversight of potential risks. Transparency in this context is not only about meeting legal requirements but also about building trust and driving ongoing improvement across the supply chain.

Contractual obligations are another key component of the sourcing model. Allbirds collaborates with selected suppliers who demonstrate compliance with local regulations and internationally recognized labor standards. Before beginning any production relationship, new partners are required to formally agree to the company’s Code of Conduct and commit contractually to prohibiting forced labor, slavery, and human trafficking. These agreements establish clear expectations and create a binding framework for ethical business practices across all manufacturing activities.

Prior to production approval, new facilities must undergo an independent third-party evaluation conducted on-site. This assessment process is designed to determine whether factories meet required standards related to workplace safety, labor conditions, and ethical operations. The evaluation typically includes confidential worker interviews, documentation reviews, and physical inspections of facilities. Depending on risk levels, these audits may be scheduled in advance or conducted without notice. Factories located in higher-risk regions or those with previous compliance concerns may be reviewed more frequently to ensure ongoing adherence to standards.

Any evidence of forced labor or human trafficking is treated as a critical violation with zero tolerance. If such findings occur during an assessment, the facility fails the review and is not permitted to continue production for the company unless corrective measures are implemented within a defined and agreed timeframe. This strict approach underscores the seriousness of human rights compliance within the sourcing system.

Beyond initial audits, the program emphasizes continuous monitoring and improvement. Suppliers are expected to address identified issues through corrective action plans that focus on resolving underlying causes rather than surface-level fixes. Progress is tracked over time, and improvements are verified to ensure that meaningful changes are achieved and maintained.

Education also plays an important role in the program. Employees involved in sourcing and supply chain management receive training on identifying and addressing risks related to forced labor and human trafficking. This helps integrate ethical awareness into everyday operational decisions and strengthens long-term compliance efforts across the organization.

Through these combined measures, Allbirds works to maintain responsible sourcing practices, improve supply chain accountability, and support global efforts to eliminate exploitative labor practices.