Deckers Outdoor Corporation
DECK
Consumer Discretionary
1
exclusion reason
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Deckers Outdoor Corporation's UGG brand is built on sheepskin and shearling products. The brand's signature boots use twinface sheepskin (wool on one side, suede on the other), making animal-derived materials central to UGG's product identity and brand value. Deckers states that sheepskin and leather are sourced as byproducts of the meat industry and maintains an Ethical Sourcing and Animal Welfare Policy requiring suppliers to certify compliance with the Five Freedoms of animal welfare. The company reports that 100% of hides used in UGG footwear come from Leather Working Group-certified tanneries or are recycled leather, and that 90%+ of sheepskin meets high animal welfare standards. Suppliers must certify they do not supply materials from mulesed sheep. While Deckers' sourcing standards are above industry average, the exclusion is structural: UGG's commercial identity depends on the large-scale commercial use of animal hides. The byproduct argument does not eliminate the ethical concern — demand for sheepskin products increases the economic value of sheep slaughter, creating a financial incentive for continued animal agriculture regardless of which body part is labeled "primary product."
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