California Transparency Act

The California Transparency in Supply Chains Act of 2010 was introduced to provide greater clarity for consumers regarding how companies address risks such as forced labor, slavery, and human trafficking within their supply networks. By requiring certain businesses operating in California to publicly outline their efforts, the law encourages accountability and enables individuals to make purchasing decisions with a better understanding of ethical practices. In response to these expectations, Allbirds has established a structured sourcing strategy focused on safeguarding workers, encouraging fair labor standards, and reducing the likelihood of human rights violations throughout its global operations.

A key element of this strategy is a strong commitment to openness. Suppliers are expected to share accurate and complete information about their practices, including both areas of strength and aspects that may require improvement. This expectation extends beyond direct suppliers to include subcontractors and other upstream partners, with requirements to disclose their identities and operational locations. By promoting visibility across multiple levels of the supply chain, the company aims to better identify risks and maintain a clear understanding of how its products are made. This level of transparency helps foster trust and supports ongoing accountability.

In addition to transparency, formal agreements play an essential role in maintaining standards. The company partners with a carefully selected group of suppliers that demonstrate compliance with applicable laws and internationally recognized labor principles. New manufacturing partners are required to formally agree to defined expectations through contracts and adherence to a code of conduct. These commitments confirm that production processes meet legal requirements related to forced labor, human trafficking, and worker protections in the regions where suppliers operate. This structured approach provides a clear framework for ethical conduct and responsible sourcing.

Before production activities begin, facilities must undergo detailed on-site assessments conducted by independent third-party organizations. These evaluations are designed to confirm that working conditions align with established standards. The process often includes private interviews with employees, examination of employment documentation, and direct observation of workplace conditions related to health, safety, and labor practices. Assessments may be conducted with or without prior notice, depending on the situation, and are tailored to reflect regional risks and industry-specific concerns.

Oversight continues beyond the initial approval stage. Follow-up evaluations are scheduled based on factors such as geographic risk levels and past supplier performance. Situations involving forced labor or human trafficking are treated with zero tolerance. If such issues are identified, the facility does not meet the required criteria, and production is suspended until appropriate corrective actions are taken. These actions must be implemented promptly and effectively within an agreed timeframe. This strict policy underscores the importance placed on protecting human rights.

The approach also emphasizes continuous development. The company works with suppliers to address identified issues through structured improvement plans that focus on underlying causes rather than temporary solutions. These efforts aim to strengthen internal systems, enhance accountability, and ensure that progress is sustainable over time. Improvements are monitored and verified to confirm that meaningful change has been achieved.

Training and education are integral components of this framework. Employees involved in sourcing and supply chain activities receive guidance on identifying and addressing risks associated with forced labor and human trafficking. This knowledge helps ensure that ethical considerations are integrated into everyday decision-making and long-term planning.

Through a combination of transparency, formal oversight, continuous improvement, and education, the company seeks to promote responsible sourcing practices and contribute to a more ethical global supply chain. These efforts reflect a broader commitment to protecting workers and supporting sustainable, responsible business operations.