“Allbirds: Redefining Sustainability in the Shoe Industry”
Allbirds, the San Francisco-based shoe company known for its eco-friendly approach, has made significant strides in reducing its carbon footprint. According to data released by the company in April 2023, the average carbon footprint for a pair of Allbirds shoes is 7.12 kg, half of the industry average of 14 kg per pair. The company has set ambitious goals to further reduce its carbon footprint, aiming for 5.5 kg by the end of 2025 and “close to zero” by 2030.
The company’s sustainability efforts are led by Aileen Lerch, the director of sustainability, who reports to Allbirds’ CEO, Joe Vernachio. Vernachio, a veteran of brands such as North Face, Nike, and Patagonia, took over as CEO in March after the company reported a decline in sales. Allbirds faces the risk of being delisted from the Nasdaq if Vernachio’s turnaround strategy fails.
To achieve its sustainability goals, Allbirds has focused on improving the durability of its core products and plans to launch a zero-carbon shoe this year. The company has also introduced carbon product labels to signal its commitment to reducing emissions and has shared its carbon footprint data with consumers and business partners to raise awareness about the environmental impact of its products.
In an effort to make sustainability data more accessible, Lerch has worked to simplify the company’s life-cycle assessment spreadsheets and methodology. Allbirds has also adopted Carbonfact, a carbon management software platform, to better understand its carbon footprint and identify areas for improvement.
Allbirds has embraced radical transparency, sharing its practices with other apparel brands and urging them to embrace carbon labeling. The company’s latest innovation, the M0.0nshot sneaker, incorporates sustainable materials such as Merino wool sourced from New Zealand farms using renewable energy and regenerative agriculture practices.
While Allbirds has made progress in reducing its carbon footprint, there are still challenges to address, particularly in the area of end-of-life strategies for its products. The company has a resale program for used products but acknowledges the need for more work on durability, repair, and recycling.
Overall, Allbirds’ commitment to sustainability and transparency sets it apart in the footwear industry. By sharing its practices and data, the company hopes to inspire other brands to prioritize environmental responsibility.