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Total Score

D+

Manufacturing Emissions Change

2023 Score

D

The brand demonstrates strong performance in the adoption of low carbon, deforestation free materials with clear targets to reduce dependency on petroleum based synthetics. The company has also set meaningful targets to transition to regenerative sources of wool and demonstrates strong levels of investment in next-gen materials.
When it comes to shipping, Allbirds is one of the better brands at disclosing emissions by shipping mode and prioritising maritime transportation to reduce its upstream emissions (96%).

To improve its score, Allbirds should increase the ambition of its Scope 3 target from 42% to at least 50% disclose more information pertaining to its thermal energy transition strategy and supply chain energy and electricity data.

Score Breakdown

Climate and Net Zero Targets

Scope 1 and 2: Allbirds commits to reducing 2020 Scope 1, 2, and 3 emissions 42% by 2030.

Scope 3: Allbirds commit to reducing 2020 Scope 1, 2, and 3 emissions 42% by 2030.

Mid-term (2035/2040) milestones: None

Net Zero Roadmap: No

Renewable Energy Targets

Own operations RE target: Yes, 100% by 2025

Supply chain RE target: 100% renewable energy for Tier 1 factories by 2025. Reports use of REC purchase as main pathway to RE.

Thermal Coal Phase Out

2030 Coal Phase-out Target: Yes to coal phase out, has a replacement policy that prioritizes biomass and gas.

Thermal energy transition/ electrification: Yes 100% coal phase out by 2030. Progress: By the end of 2023, more than 48 boilers have been modified or replaced (2022:18) to use 100% low-carbon fuel such as biomass or natural gas. 6 Adidas suppliers have now completely phased out the use of coal in their production.

By the end of 2024, more than half of the targeted suppliers in the program have upgraded their equipment and transitioned to lower-carbon fuels.

Transparency

Emissions data: 2 year disclosure, no breakdown by category, country or tier.

Supply chain energy data: No

Supplier lists published: Tier 1 published

Supplier list link

Training, feasibility studies, and non-financial support for climate action

Brand shares that in 2023, 100% of Tier 1 suppliers, by volume, completed the 2022 Higg FEM. This represents 63% of our Tier 1 suppliers by factory count. Does not track the completion of the Higg FEM beyond Tier 1 suppliers, but has goal to achieve 100% Higg FEM completion from Tier 1 and strategic Tier 2 suppliers by the end of 2025. No evidence of training on RE.

Additional, targeted support for transition planning: No evidence

Financial Support for Decarbonization

Loans and financing: No evidence

Collective financing initiatives: No evidence

Direct/debt-free financing: No evidence

Responsible/equitable buying to enable climate action

Purchasing decisions incentivize climate action: Not clear. Supplier code of conduct encourages responsible measures but only requires compliance.

Equitable/long-term sourcing to enable climate action: No evidence

Prices enable climate action: No evidence

Climate Adaptation

Adaptation/worker just transition training funded or provided: No evidence

Emergency support developed with local groups: No evidence

Decarbonization Progress

Reducing manufacturing emissions: Unclear due to reporting on emissions per product instead of absolute.

Increasing supply chain renewable electricity: Not disclosed

Coal phase out transition progress: Not disclosed

Commitment to phase out fossil fuel-derived fibers

Brand has a commitment to reduce raw materials use by 25% across footwear and apparel products. “We replace petroleum-based synthetics with natural alternatives wherever we can.”

Deforestation-free materials

Leather: No leather used

Man-made Cellulosic Fibers: FSC certified

Low-carbon materials

Yes – good examples of investment in next gen/bio alternatives, wool, sugar cane.

Increasing Circularity

Allbirds does not have clear targets to increase the use of recycled cotton, but does have a strong target for 100% regenerative wool by 2025, and reports working consistently with farmers, saying “We’re working with them to increase the supply of regenerative wool, while also creating innovative financing models to incentivise them to use their land to store carbon.” Allbirds offers resale through its own platform, and has specific product goals related to durability.

Target & increase recycled cotton

Not clear

100% recycled/organic/regen cotton + wool, report on progress

Yes – target 100% of wool from regenerative sources by 2025

Support farmers, transition to regen/organic farming

Yes – Prioritised working with sheep farmers farmers. “we’ve been in consistent conversation about how we can be supportive on our mutual journey to transform all of their farms to a regenerative model. We’re working with them to increase the supply of regenerative wool, while also creating innovative financing models to incentivise them to use their land to store carbon.”

Resale/repair – % total sales/disclosure on #

Offers resale through Allbirds ReRun

Direct link resale/repair to reduce production

Focus on increasing durability including specific product goals

Materials transparency

Shares material mix: Discloses material information by weight in MT, wool, tencel and green eva

Provides data on units sold: No

Allbirds has included upstream transportation in its Scope 3 target, but its emissions progress is unclear due to limited transparency. The company does report that 96% of its shipping was by sea in 2023, and has a goal of at least 95%, which is positive, although it does not meet the benchmark of less than 1% shipping by air.

Action to reduce the impact of marine shipping: No evidence. Signatory to The Arctic Shipping Corporate Pledge.

No commitments or actions to support a transition to Zero Emission marine shipping by 2030.

Brand communicates it has engaged on advocacy efforts, such as a signed joint statements however few recent examples in last 2 years. Brand communicated that it is advocating for policies that support more renewable energy in Vietnam.