EmissionsEmissions breakdown not reported
Allbirds is taking some action to address its climate impacts, although it has not made significant progress since the 2021 Scorecard. Allbirds’ 42% GHG emissions targets are still short of the 1.5 °C pathway, although its commitments to 100% renewable energy in its own operations and Tier 1 supply chain are important. However, Allbirds does not report on the energy or renewable energy use of its supply chain, which is essential to provide transparency into the company’s progress in decarbonising. Additionally, Allbirds does not disclose information about providing its suppliers with financial support or incentives to help them transition to renewable energy. Although Allbirds has not committed to phasing out fossil fuel derived materials, it has made progress in reducing the impact of its raw materials. It has committed to regenerative farming, sourcing 100% certified renewable resources, and replacing leather with plant-based alternatives. The company has set the important goal of doubling the lifetime of its products and reducing waste. Allbirds should focus on increasing its supplier engagement on renewable energy and providing greater transparency into its supply chain energy use and engagement.
Key Findings for Allbirds
Allbirds has set an absolute emissions reduction target for Scope 1, 2, and 3 of 42% by 2030 from a 2020 baseline. This target is still short of the 55% reduction required.
Allbirds has set a renewable energy target in its own operations of 100% by 2025, and it will reach the goal through a combination of on-site renewables, utility programs, and purchasing of renewable energy credits.
Allbirds has also set a target of 100% renewable energy for its Tier 1 supply chain by 2030, which is an essential first step for decarbonising its manufacturing.
As a member of the UN Fashion Charter Allbirds has committed to phase out coal-fired boilers from its supply chain by 2030 to reduce air pollution and cut emissions, though it lacks a public target.
Allbirds publicly reported GHG emissions in its own operations, and in its supply chain. The company does provide a full breakdown of its Scope 3 emissions.
Allbirds does publicly report its energy use for its own operations, including a breakdown of its renewable energy use but does not report how that energy is sourced.
For its supply chain, Allbirds does not publicly report its energy use, a breakdown of its suppliers’ renewable energy use or how that energy is sourced.
Allbirds does not publish a supplier list.
Allbirds states that it provides its suppliers with training and resources to help them make energy efficiency improvements. Allbirds does not report providing its major suppliers with financial incentives for energy efficiency measures and does not require them to make energy savings as a condition of the contract.
Allbirds does not require suppliers to reduce thermal coal demand in their manufacturing processes.
Allbirds does report providing its suppliers with training and resources to help them transition to renewable energy, but does not provide details. And there is no updated information on engagement for 2021. The company does not report providing financial support or incentives to make the energy transition and does not require suppliers to use renewable energy as a condition of contract.
Allbirds does require its Tier 1 suppliers to disclose GHG emissions data and provide facility level data via the Higg Index, but it does not require them to set GHG emissions reduction targets.
Allbirds has not made any commitments to phase out fossil fuel based materials.
Although Allbirds has not made a public policy to ban the sourcing of leather from the Amazon Biome, it does not source any leather products and it only sources FSC certified wood based products.
It is not discernible that Allbirds is acting to increase closed-loop apparel-to-apparel recycling for synthetic materials through innovation or investment, or from natural fibres by using recycled cotton from textile waste. Allbirds has committed to reduce the impact of its raw materials sourcing by switching to organic cotton and regenerative wool by 2025.
Allbirds is acting to increase circularity by doubling the lifetime of its footwear and apparel products and launching a resale program, as well as using design principles to improve recyclability and reduce waste. Now Allbirds needs to set clear goals on how increasing circularity will reduce production.
Allbirds does publicly report its material mix, but it does not report the volume of materials. It does not report its volume of deadstock or how it manages or disposes of its deadstock to reduce waste.
Allbirds does not report its shipping emissions annually. But it does provide a breakdown of its transportation methods. It does include shipping emissions in its GHG reduction targets.
Allbirds does have a policy to avoid aviation and commit to slower shipping methods by using over 95% ocean shipping by the end of 2025. The company does not have a near-term plan to ship its cargo via cleaner methods.
Allbirds has not committed to transitioning to zero emissions vessels (ZEV) by 2030. The company has not used its voice publicly to advocate for Zero Emission Shipping.
Although Allbirds has yet to commit to transitioning its last mile delivery to zero emission vehicles, it is experimenting with EVs for last mile delivery.
Allbirds has signed a joint statement to the government of Vietnam advocating for the creation and implementation of Power Development Plan VIII. This plan must prioritise renewable energy investment while also accelerating the country’s clean energy transition. Allbirds signed on to the We Mean Business Coalition letter to the G20 to enact policy to keep within the 1.5°C limit.
More About Allbirds
EngagementAllbirds provided feedback on the 2023 Scorecard
- “A Climate Neutral Certified Brand,”, https://www.climateneutral.org/brand/allbirds.
- “Allbirds 2021 Annual Report,” 2022. https://ir.allbirds.com/static-files/491c7508-2d6d-4c34-ac16-01b14f1c8b37.
- “Allbirds 2021 Flight Status,” October 2022. https://ir.allbirds.com/static-files/2205f309-971d-47bb-960f-de86c185f3d6.
- “Allbirds Commitment to Protect Forests Through Our Fabrics Choices,” March 6, 2018. https://cdn.shopify.com/s/files/1/1104/4168/files/180202_-_CanopyStyle_-_Allbirds_policy_vFINAL.pdf?12877821401094079415.
- “Allbirds Sustainability Report 2020,” September 10, 2021. https://cdn.allbirds.com/image/upload/v1625161698/marketing-pages/Allbirds_Sustainability_Report_2020.pdf.
- “COP26: Businesses Urge World Leaders to Keep 1.5°C Alive – We Mean Business Coalition,” 2021. https://www.wemeanbusinesscoalition.org/g20-2021/.
- “Drawdown Labs Year in Review: Accelerating the Moment of Drawdown,” December 22, 2021. https://www.drawdown.org/news/insights/drawdown-labs-year-in-review-accelerating-the-moment-of-drawdown.
- “ESG Factsheet,” December 9, 2021. https://ir.allbirds.com/static-files/b6a58d9c-e2e9-4ab2-8c02-f5505aefe986.
- “Joint Statement of Support for High-Ambition Power Development Planning in Vietnam.” Clean Energy Investment Accelerator, November 17, 2021. https://static1.squarespace.com/static/5b7e51339772aebd21642486/t/619565dd1cf92a0d50c0013b/1637180894505/CEIA%20Vietnam%20Joint%20Statement%20to%20GVN_2021.11.17.pdf.