California Transparency Act

The California Transparency in Supply Chains Act of 2010 was introduced to improve public awareness of how companies address the risks of forced labor, human trafficking, and other forms of modern slavery within their production networks. The legislation requires certain businesses that operate in California to disclose the steps they take to monitor and manage these risks. By making this information available, the law allows consumers to better understand the ethical practices behind the products they purchase and encourages companies to strengthen accountability within their supply chains.

In response to these expectations, Allbirds has developed a responsible sourcing framework focused on protecting workers, promoting fair labor standards, and preventing exploitation throughout its global manufacturing network. The company believes that ethical production is an essential part of building long-term trust with customers and partners. Ensuring that people involved in the creation of its products are treated with respect and work in safe environments is an important element of that commitment.

A central aspect of this approach is transparency. Allbirds encourages open communication with the organizations that participate in its supply chain. Suppliers are expected to provide clear and accurate information about their operations, including the facilities involved in production and the partners that contribute to the manufacturing process. This includes identifying subcontractors and other upstream suppliers, allowing the company to gain a more complete understanding of how materials and finished products move through the supply chain. By increasing visibility across multiple tiers of production, the company can more effectively identify potential risks and work with partners to address them.

Establishing clear expectations through formal agreements is another key component of the program. Allbirds works with a select group of suppliers that demonstrate commitment to respecting labor rights and following applicable regulations. Before a new supplier begins production, the organization must formally accept the company’s Code of Conduct and confirm compliance with laws that prohibit forced labor, slavery, and human trafficking in the regions where they operate. These contractual agreements outline the standards that suppliers must follow and reinforce the company’s expectation that ethical practices remain a priority throughout the production process.

To further evaluate working conditions, prospective manufacturing facilities must complete a social responsibility assessment before receiving any production orders. These evaluations are conducted by independent third-party organizations that specialize in labor and workplace compliance. The purpose of these assessments is to determine whether a facility meets the company’s minimum standards related to worker treatment, workplace safety, and employment practices. The review process often includes confidential discussions with employees, examination of employment documentation, and direct observation of the factory environment. In some cases, visits may occur without advance notice in order to gain a more accurate picture of everyday conditions.

Monitoring continues even after a facility has been approved. The company reviews supplier performance over time and may conduct additional assessments depending on factors such as geographic risk levels or previous compliance history. Violations involving forced labor or human trafficking are treated with the highest level of seriousness. If evidence of these practices is discovered, the facility will fail the evaluation. In such cases, the company will suspend production orders until the issues are corrected through responsible and verifiable actions within an agreed period.

While oversight and enforcement are important, the company also emphasizes improvement and long-term progress. Suppliers are expected to address identified issues through corrective action plans that focus on underlying causes rather than temporary adjustments. By encouraging stronger management systems and accountability structures, the company aims to support lasting improvements in workplace standards. Progress is monitored carefully to ensure that corrective actions result in meaningful and sustainable changes.

Education is another important element of the company’s responsible sourcing efforts. Employees who manage sourcing and supply chain relationships receive training designed to help them recognize and address risks related to forced labor and human trafficking. Through this education, team members develop the knowledge needed to identify potential concerns, communicate effectively with suppliers, and support ethical decision-making within the sourcing process.

Through these combined efforts, Allbirds seeks to strengthen integrity across its supply chain and contribute to broader global efforts aimed at preventing labor exploitation. By encouraging transparency, conducting independent assessments, supporting supplier improvements, and educating its internal teams, the company works toward building a production network that respects human rights and promotes responsible manufacturing practices.