Allbirds, Inc. (Nasdaq: BIRD), a global lifestyle brand that
innovates with naturally derived materials to make better footwear
and apparel products in a better way, today announced an update on
the commitments made through its Sustainability Principles and
Objectives (SPO) framework. These commitments are consistent with
the mission & values of Allbirds and our dedication to making
better things in a better way. Allbirds is providing an update on
the following commitments:
|
Commitment |
Status as of November 2022 |
ESG Rating |
|
1 |
Company undergoes environmental, social, and governance (ESG)
assessment from a widely recognized third-party ESG reviewer and
discloses a summary of the assessment and credentials of the ESG
reviewer. Company ESG performance should be in the top third of the
ESG reviewer’s coverage universe. Company self-assessment is not
permitted. |
Sustainalytics assessment done pre-IPO. Last B Corp certification
in Jan 2020, valid for three years. Company has begun the
recertification process and expects recertification in Spring 2023
due to delays at B Lab. |
Mission and Purpose |
|
2 |
Company clearly articulates how positive social and/or
environmental impact is embedded in its business model, products
and services as they relate to key stakeholders (e.g., customers,
employees, suppliers, shareholders, and external stakeholders) as
evidenced through SEC filings and other publicly available company
reports. Company can also meet this criterion through Public
Benefit Corporation, Benefit Corporation, or Social Purpose
Corporation status. |
Company mission of "environmental conservation" is enshrined in its
Public Benefit Corporation status. |
3 |
Company has either already reported, or committed to report
annually on key ESG factors. Company may use one or more
comprehensive reporting frameworks on financially material
industry-specific sustainability-related risks and opportunities
for an investor audience (e.g. the Sustainability Accounting
Standards Board, or SASB) and/or report on holistic economic,
environmental, and social impacts of the company’s activities and
contributions for a stakeholder audience (e.g. Global Reporting
Initiative, or GRI) or pursue an integrated reporting approach, in
addition to meeting regulatory disclosure requirements. This
reporting will also include clear and explicit references to the
company’s performance against the SPO Framework. |
SASB and TCFD disclosures included in FY21 10-K filed on March 16,
2022. The Company published its 2021 "Flight Status" Sustainability
Report in October 2022 with an update on Flight Plan progress
https://www.allbirds.com/pages/sustainable-practices. The current
document updates the Company's performance against the SPO
Framework. |
Climate and Environment |
|
4 |
Company has either already reported according to Task Force on
Climate-Related Financial Disclosures recommendations, or commits
to do so within 24 months of Initial SPO Evaluation Date, to
demonstrate forward-looking understanding, management, and
disclosure of climate-related risks. |
Included in Company's 2021 10-K filed on March 16, 2022. |
5 |
(i) Company has already reported scope 1, 2, and 3 emissionsAND(ii)
Company has already verified scope 1 and 2 emissions at Initial SPO
Evaluation Date and commits to verify scope 3 emissions within 6
months of Initial SPO Evaluation Date or explain why scope 3
emissions cannot be verifiedAND(iii) Company commits to report and
verify Scope 1, 2, and 3 emissions annually. |
Company GHG inventory third party verified in Spring of 2021, and
reported emissions by scope per its Climate Neutral certification:
https://www.climateneutral.org/brand/allbirds. Company also
reported 2021 absolute GHG emissions and reductions on a per unit
basis in 2021 "Flight Status" sustainability report published
October 2022:
https://www.allbirds.com/pages/sustainable-practices. |
6 |
Company commits to establish, within one year of Initial SPO
Evaluation Date, a carbon emissions reduction target that:(i) Aims
for net zero emissions covering Scopes 1, 2 and 3 as soon as
possible, and no later than 2040AND(ii) Is aligned to a 1.5°C
temperature scenario, with interim targets measured no later than
2030.Company commits to make all viable efforts to reduce emissions
before looking to purchase carbon offsets, which should be
transparently disclosed, of high quality, and verified by a
credible third-party. If a company has significant Scope 3
emissions (over 40% of total Scope 1, 2, and 3 emissions), it
should include all material categories of Scope 3 emissions in the
target. |
Company has a Science Based Target for 2030 aligned with a 1.5°C
trajectory to reduce scopes 1, 2, and 3 emissions by 42% from a
2020 baseline year. Allbirds also committed to net zero emissions
by 2030 as defined by B Corp's Net Zero by 2030 commitment at COP25
in 2019, meaning that it will reduce emissions aligned with a 1.5°C
trajectory before neutralizing remaining emissions. |
7 |
Environmental Program:Company created an
Environmental Policy & Program for T1 suppliers, which includes
guiding principles to reduce environmental impact in its supply
chain and the necessary monitoring mechanisms to ensure compliance.
Included in Allbirds's environmental policy is the requirement for
all T1 suppliers to disclose their environmental performance
through the Higg Facility Environmental Module (FEM), and verify it
within the first three years. In 2020, 68% of Company partners
completed the FEM. Allbirds is on track to meet 99% completion for
its Tier 1 manufacturers in 2021.Chemicals:Another
important facet of the Company's Environmental Program is its
commitment to a clean chemistry program. The Company has made
several updates to its RSL program, which includes adopting the
AFIRM RSL, creating a legally-binding RSL Manual for our suppliers,
and defining new testing requirements and processes. This new
program will launch to suppliers in Q4 2022. |
Regarding most material environmental issues, Company followed
guidelines provided by recognized frameworks to develop its
definition of materiality and also conducted an assessment to
incorporate stakeholder input. This assessment informs the
sustainability strategy that is publicly posted on its website and
included in the 2020 Sustainability Report. The Company will report
progress toward the sustainability commitments on an annual basis.
The Company has policies and procedures in place to address the
health, safety, and wellness of its employees, including applicable
occupational health and safety principles. The company has a Retail
Health & Safety Task Force in place that meets weekly to
discuss and share workplace health and safety matters and
developments. Moreover, the Company conducts quarterly operational
audits within retail stores to ensure that working areas are safe.
However, the health and safety system in place is not certified to
a relevant standard (e.g. ISO 45001). |
Value Chain |
|
8 |
Company has policies or programs designed to require Tier 1 ("T1")
suppliers to address its most material environmental issues (e.g.,
water, waste/circularity, biodiversity, land use, chemical use,
energy use, and natural resource use). Company commits to report
annually on progress. |
Environmental Program:The Company created an
Environmental Policy & Program for T1 suppliers, which includes
guiding principles to reduce environmental impact in its supply
chain and the necessary monitoring mechanisms to ensure compliance.
Included in Allbirds's environmental policy is the requirement for
all T1 suppliers to disclose their environmental performance
through the Higg Facility Environmental Module (FEM), and verify it
within the first three years. In 2020, 68% of Company partners
completed the FEM. Allbirds is on track to meet 99% completion for
its Tier 1 manufacturers in 2021.Chemicals:Another
important facet of Allbirds's Environmental Program is its
commitment to a clean chemistry program. The Company has made
several updates to its RSL program, which includes adopting the
AFIRM RSL, creating a legally-binding RSL Manual for our suppliers,
and defining new testing requirements and processes. This new
program will launch to suppliers in Q4 2022. |
9 |
Company has policies or programs in place to monitor and enforce
Tier 1 supply chain labor standards based on core labor standards
as defined by the International Labour Organization, or local legal
requirements, whichever is higher. Such policies and programs are
supported and verified by assessment and Company commits to report
annually on progress. |
The Company updated its Responsible Sourcing audit framework to
enable better visibility and data collection into its Tier 1
manufacturers and completed training with 100% of its Tier 1
manufacturers on its updated Responsible Sourcing audit
framework. |
People |
|
10 |
Company has made a commitment to achieve and maintain employee
diversity (e.g., Gender/Race/Ethnicity/National Origin/Sexual
Orientation/Religion/Disability/Age if legally permitted to collect
such employee data) and reports currently and annually on progress,
including aggregate data on representation, targets, job category,
and compensation, and, in addition, commits to conduct ongoing
training for personnel, leadership, and board members. |
Company's Diversity, Equity, Inclusion & Belonging ("DEIB")
website https://www.allbirds.com/pages/deib went live in October
2022 and also plans to launch a LinkedIn page to share its DEIB
progress. The Company currently has recruitment data for Race and
Gender, but we do not yet have data by Level and Category. Allbirds
has onboarded a new DEIB learning tool that will launch a pilot in
November 2022 with the goal of giving access to DEIB training to
all employees in January 2023. The Company is also launching a DEIB
training pilot to its first store in October 2022 with the goal to
expand to other stores in 2023. |
11 |
Company commits to report annually on progress towards its goals
regarding the median pay gap and mean pay gap, as defined by local
regulations or, where those do not exist, the Organization of
Economic Cooperation and Development or International Labour
Organization on gender and minority groups appropriate for their
geography/ies. |
Company conducts analyses of pay and compensation practices in
consultation with expert third-party firms. Through pay and policy
adjustments, we correct for unintended pay differences and, where
appropriate, adjust for market competitiveness as part of our
annual and ongoing reviews. Based on internal analysis that takes
various groups and gender into account, as well as comparing
against national market data and benchmarks, the Company
compensates all employees equitably. |
12 |
Company commits to establish, within one year of Initial SPO
Evaluation Date, a human rights policy consistent with the UN
Guiding Principles on Business and Human Rights. |
Company has contracted with Businesses for Social Responsibility
(BSR) to complete and create a Human Rights Policy aligned with the
UN Guiding Principles, expected by the end of 2022 |
Governance |
13 |
Company commits to establish and implement, within 24 months of
Initial SPO Evaluation Date, a living wage requirement for all
employees using a credible third-party measurement framework. |
Company plans to conduct a living wage gap analysis with Living
Wage for the US in the first half of 2023, and plans to outline a
roadmap to pay a living wage to all employees by the end of 2023.
Roadmap to a living wage by end of 2023. |
14 |
Company has clearly articulated how the Board will oversee
ESG-related matters, including strategy, risk, and reporting, as
formally documented in the charter for one or more Board
committees. |
Completed. The Company's Sustainability, Nomination, and Governance
Committee oversee ESG-related matters (enumerated in committee
charters) |
15 |
Company has made a commitment to achieve and maintain board
diversity (e.g., Gender/Race/National Origin/Sexual
Orientation/Religion/Disability/Age, where legally permissible) and
report annually on progress. |
Completed. Company will disclose in its yearly proxy statement
(i.e. Nasdaq board diversity requirements) |
16 |
Company has tied, or commits to tie within one year of Initial SPO
Evaluation Date, executive remuneration to performance on ESG
metrics, with disclosure of how the metrics relate to material ESG
issues. |
Completed. Company executive bonuses are tied to sustainability
metrics. |
17 |
Company has one or more dedicated ESG-focused executives, such as
Chief Sustainability Officer or similar role. |
Completed. Company employs a Head of Sustainability. |
18 |
Company commits to align, within six months of Initial SPO
Evaluation Date, its policy advocacy, political contributions, and
trade association engagement with these sustainability
criteria. |
Company published an update in May 2022:
https://ir.allbirds.com/static-files/c0d9d371-f7fc-4f44-b434-06cfdad1e642 |
19 |
Company has a company-wide ethics policy and confidential channel
for reporting concerns. |
Completed. Company's Code of Business Conduct and Ethics, including
a confidential reporting channel, can be found here:
https://ir.allbirds.com/corporate-governance/governance-overview |