California Transparency Act

The California Transparency in Supply Chains Act was created to increase public awareness of how businesses address the risks of forced labor, human trafficking, and other forms of exploitation within their supply chains. By encouraging companies that operate in California to disclose their practices, the legislation provides consumers with greater insight into the ethical standards behind the products they purchase. This transparency supports informed decision-making and encourages businesses to strengthen their oversight of labor conditions throughout their production networks.

To support these principles, Allbirds has implemented a responsible sourcing strategy focused on safeguarding worker welfare, promoting ethical business conduct, and reducing the possibility of labor-related abuses across its supply chain. The company believes that every individual involved in the production process should be treated fairly and work under conditions that respect fundamental human rights. As a result, responsible sourcing is integrated into supplier relationships, operational decision-making, and long-term business planning.

An important aspect of this approach is maintaining visibility throughout the supply chain. Allbirds seeks detailed information about the facilities and organizations that contribute to the creation of its products. Suppliers are encouraged to provide accurate and complete information regarding their operations, including the involvement of subcontractors and other production partners. This level of transparency allows the company to better understand potential risks, monitor working conditions, and identify areas where additional oversight may be necessary. Open communication is viewed as a critical element in building accountability and supporting continuous improvement across the supply network.

The company also establishes clear expectations through formal agreements with manufacturing partners. Suppliers are expected to comply with applicable laws and uphold standards that protect worker rights and prohibit exploitative labor practices. These expectations are reinforced through contractual commitments and compliance requirements that outline the responsibilities suppliers must meet. By clearly defining these obligations, Allbirds aims to create strong partnerships based on ethical conduct, legal compliance, and mutual accountability.

Before a manufacturing facility becomes part of the company’s production network, it is typically required to complete a comprehensive social compliance review. Independent third-party organizations conduct these evaluations to assess workplace conditions and determine whether facilities meet established standards. The review process may include confidential discussions with employees, examination of employment documentation, analysis of workplace policies, and inspections of health and safety conditions. These assessments provide valuable information about labor practices and help ensure that facilities operate in accordance with expected standards.

The evaluation process is designed to address the unique risks associated with different regions and industries. Facilities operating in higher-risk environments may be subject to more extensive oversight and more frequent reviews. Assessments can occur with advance notice or without prior warning, depending on the circumstances and the objectives of the evaluation. This flexible approach helps provide a more accurate understanding of day-to-day working conditions and supports ongoing monitoring efforts.

Labor practices involving coercion, forced employment, or human trafficking are regarded as serious violations of supplier requirements. The company maintains strict expectations regarding these issues and expects suppliers to address any identified concerns immediately. If significant violations are discovered, corrective measures must be implemented promptly and effectively before business relationships can continue. This approach reflects the importance placed on protecting workers and maintaining responsible sourcing standards throughout the supply chain.

In addition to evaluating compliance, Allbirds places significant emphasis on continuous improvement. Suppliers are encouraged to strengthen internal systems, improve management processes, and address the underlying causes of identified issues rather than focusing solely on short-term corrections. Corrective action plans are monitored over time to ensure that improvements are sustainable and result in meaningful progress. This long-term perspective supports stronger workplace practices and helps create lasting positive outcomes for workers.

Training and education are also important components of the company’s responsible sourcing efforts. Employees involved in procurement, sourcing, and supplier management receive guidance on recognizing indicators of labor exploitation and understanding the challenges associated with human trafficking and forced labor. This knowledge helps internal teams make informed decisions, identify potential risks, and engage more effectively with suppliers on ethical and compliance-related matters.

Through supplier engagement, independent assessments, transparency initiatives, ongoing monitoring, and employee education, Allbirds seeks to strengthen the integrity of its global supply chain. These efforts are intended to support fair labor practices, encourage accountability, and reduce the risk of modern slavery throughout production activities. By maintaining a strong focus on worker rights and responsible sourcing, the company aims to contribute to a more ethical and sustainable manufacturing environment while providing customers with greater confidence in the products they choose.