California Transparency

The California Transparency in Supply Chains Act of 2010 was introduced to promote greater accountability among companies that produce or sell goods in California. It requires organizations to provide clear information about how they identify and address risks associated with forced labor, human trafficking, and slavery within their supply chains. The purpose of this legislation is to give consumers better visibility into business practices, enabling them to make more informed choices based on ethical considerations.

In alignment with these expectations, Allbirds has established a responsible sourcing framework aimed at safeguarding workers and promoting fair and lawful labor conditions across its global operations. This approach reflects a broader commitment to ensuring that individuals involved in the production process are treated with dignity and respect. It also seeks to provide transparency into how products are made and the conditions under which they are produced, reinforcing trust between the company and its customers.

A central aspect of this approach is openness throughout the supply chain. Suppliers are expected to communicate honestly about their operations, including both successes and areas requiring improvement. This expectation extends beyond direct suppliers to include subcontractors and upstream partners, with requirements to disclose their identities and locations. By maintaining visibility across multiple tiers, the company is better positioned to assess potential risks and implement effective oversight. Transparency is viewed not only as a regulatory obligation but also as a critical component of accountability and long-term progress.

Formal agreements play an essential role in reinforcing these standards. The company collaborates with a select group of suppliers who demonstrate adherence to local laws and internationally recognized labor principles. New partners are required to agree to defined standards through contractual commitments and compliance with a code of conduct that addresses issues such as forced labor and human trafficking. These agreements establish clear expectations and provide a structured basis for responsible business practices.

Before production begins, manufacturing facilities are subject to detailed on-site evaluations conducted by independent third-party organizations. These assessments are designed to determine whether working conditions meet established requirements. The process may include private discussions with employees, examination of employment records, and direct observation of workplace safety and conditions. Evaluations may be scheduled or unannounced, depending on the circumstances, and are influenced by regional risk factors and industry-specific challenges. Facilities operating in higher-risk environments or with prior performance concerns may undergo more frequent reviews.

Violations related to forced labor or human trafficking are treated with the utmost seriousness. If such issues are identified, the facility does not meet the required standards, and production activities are halted until corrective measures are implemented. Resolution must occur within a defined timeframe and in a responsible manner before operations can resume. This strict approach reflects a zero-tolerance stance on human rights violations.

Ongoing improvement is another key element of the program. The company monitors supplier performance and works with partners to address identified issues in a sustainable way. Corrective actions are expected to focus on underlying causes rather than temporary solutions, helping to establish stronger systems and accountability over time. Progress is tracked and verified to ensure that improvements are meaningful and lasting.

Education and awareness are also prioritized. Employees involved in sourcing and supply chain management receive training to better understand the risks associated with forced labor and trafficking. This knowledge supports more informed decision-making and strengthens the company’s ability to identify and mitigate potential concerns.

Through a combination of transparency, structured oversight, continuous improvement, and education, the company aims to maintain responsible sourcing practices and contribute to efforts that address modern slavery and human trafficking on a broader scale.