ALLBIRDS INC

Allbirds Inc. derives a significant portion of its revenue from products made with animal-derived materials, primarily merino wool used in its core footwear line. The company’s marketing emphasizes sustainability and ethical sourcing, but its supply chain is implicated in the commercial exploitation of sheep.

A 2021 class action lawsuit alleged Allbirds misled consumers about the environmental impact and animal welfare standards of its wool sourcing. The complaint specifically cited the suffering of sheep in the wool industry. While the case was later dismissed on procedural grounds, the underlying animal welfare allegations regarding large-scale wool production were not adjudicated on the merits. Independent animal rights organizations, including PETA, have documented standard practices in the wool industry—such as mulesing—that cause animal suffering, and have criticized Allbirds for sourcing from this system.

The company’s business model is fundamentally tied to animal agriculture. Despite its “sustainable” branding, Allbirds has not demonstrated a verifiable, farm-level traceability system that excludes these widespread practices, nor has it committed to phasing out animal-derived materials in favor of truly cruelty-free alternatives.