GlobalData offers a comprehensive analysis of Allbirds, providing key insights into its Environmental, Social, and Governance(ESG) factors. By closely monitoring and aggregating mentions of climate change and associated ESG keywords, GlobalData delivers valuable information on Allbirds‘ ESG performance. GlobalData’s company profile on Allbirds offers a 360-degree view of the company, SWOT analysis, key financials, and business strategy including insights on ESG implementation among other information. Buy the report here.
Allbirds, a sustainable footwear company, has set a target to reduce its absolute emissions to near zero by 2030. The company has established 2025 targets, aiming to sustainably source 75% of its materials and reduce the carbon footprint of key raw materials by 25%. Additionally, there is a goal to decrease raw material use by 25% across footwear and apparel products. Allbirds, through the introduced Flight Plan in 2021, outlines its commitment to halve the average product carbon footprint by the end of 2025 and ultimately reduce it to near zero by 2030. Through this plan, the company seeks to achieve an 8% reduction in regenerative agriculture, an 18% decrease in renewable materials, and a 26% decrease in responsible energy by 2025. Additionally, the company aims for the average product-related carbon emissions to be 5.50 kg CO2e in 2025.
In terms of carbon emissions, Allbirds has made significant progress. The company has already reduced its per product carbon footprint by 1.64 kg CO2e, which is a 19% over the past year, and is likely to be its largest annual cut. The reduction resulted from various initiatives: an increase in the preferred mix of renewable materials (3%), an update to footwear packaging (1%), assistance from broader renewable energy adoption (2%), a substantial rise in ocean shipping (8%), and lower production of Wool footwear styles (5%). Additionally, Allbirds is more than halfway towards its 2025 goal of shrinking its carbon footprint in half.
In March 2023, the company announced its project called M0.0NSHOT, which aims to create the world's first net-zero carbon shoe. Allbirds plans to achieve its targets by reimagining its processes and leveraging sustainable innovations such as SuperLight Foam made with carbon-negative, sugarcane-derived green EVA, regenerative wool, and carbon-negative bioplastic eyelets. The company also has a considered transportation plan, including biofuel-powered ocean shipping and electric trucking. Allbirds aims to achieve its near-zero carbon footprint without relying on carbon offsets.
The company recognizes that reducing carbon emissions is just one aspect of sustainability and is committed to addressing other environmental impacts as well. To achieve its emission reduction targets, Allbirds has taken several steps. The company has invested in renewable energy credits and renewable energy adoption in its facilities. It is also advocating for policies that support renewable energy in the countries where it operates. Allbirds has transitioned to using recycled materials in its products, such as recycled nylon in its Wool styles.
In conclusion, Allbirds is committed to reducing its carbon footprint and achieving near zero by 2050. The company is leveraging sustainable innovations, investing in renewable energy, and transitioning to recycled materials. The company has made significant progress in reducing its carbon emissions and is on track to achieve its 2025 goals. Allbirds recognizes that sustainability encompasses more than just carbon reduction and is taking a holistic approach to address its environmental impact.