Allbirds, Inc. (BIRD): PESTLE Analysis [Nov-2025 Updated]

You need a clear, actionable view of the external forces shaping Allbirds, Inc. (BIRD) right now. The company is navigating a tough economic climate while doubling down on its core sustainability mission, which is both a risk and a massive opportunity. This PESTLE analysis cuts through the noise to show you exactly how political tariffs, a $15.9 billion market opportunity, and a September 2025 Nasdaq compliance issue are shaping their $175 million to $195 million revenue guidance for 2025. You need to see the external forces clearly to judge their turnaround plan.

Political Factors: Tariffs and Compliance Headwinds

The political landscape creates real cost pressure for Allbirds, Inc. U.S. tariffs on footwear imports remain stubbornly high, reaching up to a 67.5% rate on certain items. Here's the quick math: that tariff rate is a direct hit to your supply chain cost structure, forcing you to constantly optimize sourcing or absorb the cost.

Still, government support for clean energy, like the $40 billion in U.S. federal spending in 2024, definitely favors the Allbirds, Inc. brand story. On the regulatory side, the European Union's Corporate Sustainability Reporting Directive (CSRD) is a new headache, requiring complex Environmental, Social, and Governance (ESG) compliance for global operations. Global labor laws in manufacturing hubs also necessitate continuous ethical sourcing audits and cost management. You have to pay close attention to where your shoes are made.

Economic Factors: Profitability Challenge Meets Market Opportunity

Honestly, the near-term economic picture is tough. Allbirds, Inc. is guiding for full-year 2025 net revenue between $175 million to $195 million, which is a significant decline from prior years and signals ongoing market share challenges. The adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss is projected to be between $65 million and $55 million for 2025, which means the company is still burning cash.

The gross margin contracted to 42.7% in the first nine months of 2025, largely because of heavy promotions and shifts in how products are sold. What this estimate hides is the massive opportunity: the global eco-friendly footwear market is projected to reach $15.9 billion by 2025, which is the prize Allbirds, Inc. is fighting for. The market is there, but profitability isn't.

Sociological Factors: The Ethical Consumerism Boom

The biggest tailwind for Allbirds, Inc. is the consumer shift. Ethical consumerism is booming, with the market projected to hit $9.81 billion by 2025. A strong majority of global consumers-65%-are willing to pay more for products with proven sustainability credentials, which is the core of the Allbirds, Inc. value proposition.

Plus, demand for supply chain transparency is high; 73% of consumers prioritized it in 2024. This aligns perfectly with the company's mission. The Millennial and Gen Z focus on wellness and minimalism also plays right into the simple, natural design of their footwear. The consumer wants what you're selling.

Technological Factors: Supply Chain Traceability and E-commerce Reliance

Technology is the engine for their sustainability claims. Allbirds, Inc. has a goal to achieve full material traceability by the end of 2025, using blockchain technology to prove supply chain transparency to that demanding 73% of consumers. Research and Development (R&D) investment is focused on proprietary sustainable materials, building on the $7.2 million spent in 2023.

E-commerce is crucial, representing a massive 72.4% of total revenue in 2023, so constant platform optimization is a must-have. Also, increased use of data analytics helps personalize marketing and refine product development based on consumer insights, making every marketing dollar work harder. Use the data to sell more shoes.

Legal Factors: Nasdaq Compliance and IP Protection

A very near-term risk is the Nasdaq compliance issue that arose in September 2025 following a board member resignation, which requires a cure period for the independent director majority rule. This is a critical governance issue that needs immediate resolution to maintain listing compliance. Compliance with the California Transparency in Supply Chains Act is mandatory for U.S. operations, adding a layer of legal complexity to sourcing.

Protecting proprietary material innovations, like SweetFoam, is a continuous intellectual property challenge that requires consistent legal defense. Finally, global product safety and labeling standards are complex, especially across different international markets, so you need a tight legal team on product launches.

Environmental Factors: The Carbon Footprint Commitment

The company's 'Flight Plan' is their core environmental commitment. It aims to cut the per-unit carbon footprint in half by the end of 2025. The baseline is clear: the carbon footprint was measured at 7.3 kg CO2e per pair of shoes in 2024, so the target is measurable and public. A key 2025 goal is also to promote and adopt regenerative agriculture practices in the material supply chain, which is a smart way to secure sustainable inputs.

Maintaining B Corp certification requires rigorous, triennial recertification to prove social and environmental performance, which is a continuous operational audit. This commitment is the brand's greatest strength, but it's also a constant operational cost. Sustainability is expensive, but necessary.

Allbirds, Inc. (BIRD) - PESTLE Analysis: Political factors

U.S. tariffs on footwear imports remain high, up to 67.5%, impacting supply chain costs.

You need to be acutely aware that U.S. trade policy has made importing footwear a brutally expensive exercise, directly hitting your cost of goods sold (COGS). The footwear industry faces some of the highest import duties among all consumer goods. Base duties, which can range from 11.9% to over 37% depending on the material and type of shoe, are compounded by additional tariffs.

For imports from China, the total duty can exceed 100%, and in some extreme cases, tariffs have been reported to reach as high as 145%. Even if Allbirds has diversified its supply chain away from China, the trade war's ripple effect is clear. New tariffs announced in April 2025, for instance, have increased the duty on imports from Vietnam by 46% and from Indonesia by 32%. This is not a theoretical risk; it's a realized cost that forces you to either raise retail prices by an estimated 5% to 20% or absorb the margin hit.

Diversification is the only short-term defense.

Government support for clean energy, like the $40 billion in U.S. federal spending in 2024, favors their brand.

The U.S. government's massive push toward clean energy is a significant tailwind for a brand built on sustainability like Allbirds. The Inflation Reduction Act (IRA) is the core of this, offering nearly $370 billion in tax credits, grants, and loans for clean energy over its lifetime. To be fair, the total estimated cost of the IRA's energy subsidies is now projected to be between $936 billion and $1.97 trillion over the next decade, with the CBO and JCT estimating the credits alone will cost approximately $786 billion from 2024 to 2033. That's a huge pool of capital.

For Allbirds, the opportunity lies in the direct incentives for clean manufacturing and supply chain decarbonization. Specifically, the Clean Energy Investment Tax Credit (ITC) offers up to a 30% credit for qualifying investments in renewable energy projects, like solar power at manufacturing or corporate facilities. This directly lowers the capital cost of achieving your ambitious carbon-neutral goals. This federal support makes your commitment to renewable energy a defintely more profitable business decision.

Increased regulatory scrutiny from the EU's Corporate Sustainability Reporting Directive requires complex ESG compliance.

Your European operations face a new, stringent compliance hurdle with the European Union's Corporate Sustainability Reporting Directive (CSRD). This isn't voluntary; it's mandatory regulation designed to make Environmental, Social, and Governance (ESG) data as verifiable as financial data. The first wave of companies must apply these new rules for the 2024 financial year, with reports due in 2025. This is a hard deadline.

The CSRD requires a detailed double materiality assessment-meaning you must report on how sustainability issues affect your company and how your company impacts people and the environment. Given Allbirds' public commitment to sustainability, this scrutiny is a high-stakes test of your claims. The directive applies to all listed companies in the EU and large non-listed companies that meet two of three criteria:

• More than 250 employees.
• More than €25 million in assets.
• Over €50 million in annual revenue.

Plus, it extends to non-EU companies generating more than €150 million in the EU. The compliance cost is high, but successfully navigating this will give you a significant competitive advantage over less transparent peers in the European market.

Global labor laws in manufacturing hubs necessitate continuous ethical sourcing audits and cost management.

The political pressure on global labor practices, particularly forced labor, is escalating, turning ethical sourcing from a Corporate Social Responsibility (CSR) initiative into a core supply chain risk. Regulations like the U.S. Uyghur Forced Labor Prevention Act (UFLPA) are being enforced with increasing strictness, leading to more detentions of goods at the border. This requires continuous, expensive due diligence that goes beyond Tier 1 suppliers.

To manage this risk in key manufacturing hubs, you must invest heavily in verification. For example, a major peer in the footwear industry conducted 592 social compliance audits in 2024, with 95% of those being unannounced to ensure accuracy. This is the new standard. Your cost of compliance-for third-party audits, supply chain mapping technology, and staff training-is a non-negotiable operating expense that will rise in 2025. Failure here means not just reputational damage, but potential import bans and substantial fines.

Here's the quick math: Increased compliance costs mean a higher cost per unit, but it's still cheaper than a UFLPA-related shipment detention.

Allbirds, Inc. (BIRD) - PESTLE Analysis: Economic factors

You're looking at Allbirds' financial health and the economic climate it operates in, and the blunt takeaway is this: the company is navigating a tough economic reality where its ambitious growth is stalled, but the long-term market opportunity remains massive. The near-term focus is on cost discipline and liquidity, not topline expansion.

Full-year 2025 net revenue is guided between $161 million to $166 million, a significant decline from prior years.

The company's full-year 2025 net revenue guidance has been revised downward to a range of $161 million to $166 million, a clear signal of ongoing economic headwinds and internal structural changes. This is a significant decline, reflecting planned retail store closures and the transition to a distributor model in some international markets. The third quarter of 2025 alone saw net revenue drop to just $33.0 million, a 23.3% decrease compared to the same period a year ago. Honestly, this revenue contraction, driven by a difficult macro backdrop and strategic restructuring, puts serious pressure on their path to profitability.

Here's the quick math on their current revenue trajectory:

Adjusted EBITDA loss is projected to be between $63 million and $57 million for 2025, signaling ongoing profitability challenges.

The profitability picture remains challenging, with the full-year Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) loss projected to be between $63 million and $57 million. This metric, which gives a cleaner view of core operating performance, shows the company is still burning cash as it executes its turnaround plan. For perspective, the Q3 2025 Adjusted EBITDA loss was $15.7 million, an improvement from the prior year, but still a substantial loss. The good news is management is taking definitive steps to further reduce costs and enhance liquidity, plus they managed to reduce inventory by 25.0% year-over-year to $43.1 million as of September 30, 2025. What this estimate hides is the continued need for capital until the new product and marketing initiatives can drive a return to top-line growth.

Gross margin contracted to 42.8% in the first nine months of 2025 due to promotions and channel mix shifts.

Gross margin, a critical indicator of pricing power and cost management, has contracted due to a combination of factors. The gross margin for the first nine months of 2025 was approximately 42.8%. This decline is primarily due to increased promotional activity-a necessity in a soft consumer spending environment-and a higher mix of business coming from international distributors and digital channels, which often carry different cost structures than retail stores. The Q3 2025 gross margin specifically was 43.2%. This margin pressure is a direct economic consequence of a competitive market where the company must use price (promotions) to move product and reduce its inventory. The goal is to get back to a healthier gross margin, but that's defintely a tough climb in this economy.

The global eco-friendly footwear market is a huge opportunity, projected to reach $10.4 billion by 2025.

Despite the company's internal financial struggles, the underlying market trend is a massive opportunity that directly aligns with Allbirds' core mission. The global sustainable footwear market is projected to be valued at approximately $10.4 billion in 2025. This market is expected to grow at a Compound Annual Growth Rate (CAGR) of 6.4% through 2035, demonstrating sustained consumer demand for eco-conscious products. Allbirds is positioned squarely in this growing segment, but it faces stiff competition from major players like Nike, Inc. and adidas AG, who are also investing heavily in sustainable lines. The economic opportunity is clear, but capturing it requires a successful brand and product reset.

• Market size in 2025 is $10.4 billion.
• Projected to reach $19.4 billion by 2035.
• Athletic footwear dominates the segment, holding 60.0% market share in 2025.

Next step: Strategy team should draft a three-year market share capture plan for the athletic segment by end of next quarter.

Allbirds, Inc. (BIRD) - PESTLE Analysis: Social factors

The social environment for Allbirds, Inc. is a powerful tailwind, driven by a fundamental shift in consumer values. You are operating in an era where sustainability is not a niche preference; it's a non-negotiable expectation, especially from the younger, high-spending cohorts. This alignment between the company's core mission and macro-social trends provides a critical competitive advantage, but it also raises the bar for transparency and execution.

Ethical consumerism is booming, with the market projected to hit $9.81 billion by 2025

Forget the old, smaller projections; the scale of ethical consumerism (products prioritizing social responsibility and environmental consciousness) is massive and growing fast. In the United States alone, consumers are expected to spend approximately $217 billion on eco-friendly products in the 2025 fiscal year. This spending represents an estimated 19.4% of total American retail spending as of 2025, a share that is expanding rapidly. Globally, the ethical labels market-a proxy for conscious consumption-was valued at over $1.1 trillion in 2024. This isn't a fad; it's a structural change in how people shop. Your product, built on natural materials like Merino wool and eucalyptus tree fiber, is perfectly positioned to capture this spending. The challenge is maintaining the perception of genuine sustainability as the market gets crowded.

A strong majority of global consumers, 65%, are willing to pay more for products with proven sustainability

The willingness to pay a premium for ethical goods is a core driver of your gross margin potential. While some older studies cited 65%, more recent data from 2024 and 2025 shows this sentiment is even stronger, especially in the apparel category. Up to 80% of worldwide consumers are now willing to pay more for eco-friendly products. More specifically, a 2024 PwC survey found that consumers are willing to pay an average of 9.7% more for sustainably produced or sourced goods. This is a clear signal: consumers are ready to financially reward brands that demonstrate genuine commitment. For Allbirds, Inc., this is a direct validation of its higher price point compared to conventional footwear, but it means you must defintely deliver on the 'proven' part of the sustainability claim.

Demand for supply chain transparency is high; 73% of consumers prioritized it in 2024

The days of a simple 'eco-friendly' label being enough are over. Consumers are now demanding radical transparency (visibility of all components and their impacts) across the supply chain. This is a crucial risk factor. Over 70% of Millennials and Gen Z prefer brands that have transparent practices. The risk of an opaque supply chain is real: a significant 65% of shoppers would consider switching to a competitor if a brand disclosed product origins and maintained overall supply chain transparency, as of April 2025. Allbirds, Inc.'s Public Benefit Corporation status and its Flight Plan initiative-which includes a goal to source 75% of materials from sustainable natural and recycled sources by December 2025-are direct responses to this demand. You must communicate the carbon footprint of 5.54 kg CO2e per product (as of 2023) clearly, and continue to drive that number down.

The Millennial and Gen Z focus on wellness and minimalism aligns perfectly with Allbirds' product design

This is where the product-market fit is strongest. Millennials and Gen Z are not just buying sustainable products; they are embracing a holistic lifestyle centered on wellness, mental health, and minimalism. They are actively seeking to buy less, but better. This generation is driving the $2 trillion wellness industry and accounts for over 40% of the total market spend.

Allbirds, Inc.'s product philosophy-simple, comfortable, versatile shoes made from a few natural materials-is a physical manifestation of this minimalist, 'less is more' mindset. It's a powerful narrative that resonates deeply with their values.

• Prioritize experiences over material possessions.
• View wellness as a holistic lifestyle, including environmental sustainability.
• Expect brands to act as partners in their sustainability journey.

For Allbirds, Inc., whose full-year 2025 net revenue is projected to be between $165 million and $180 million, this social alignment is the primary engine for organic growth. The company must continue to lean into the simplicity and wellness narrative to convert this cultural trend into sales.

Allbirds, Inc. (BIRD) - PESTLE Analysis: Technological factors

Goal to achieve full material traceability by the end of 2025 using blockchain technology for supply chain transparency.

You're looking for assurance that Allbirds' sustainability claims are more than just marketing, and technology is the only way to deliver that proof. The company has set an aggressive goal to achieve 100% of all tiers of its supply chain mapped by the end of 2025 as part of its Flight Plan commitments. This is defintely a high-stakes target, especially in a complex global supply chain for footwear and apparel.

While the broader industry is exploring immutable ledger technologies like blockchain for this kind of transparency, Allbirds is currently leveraging advanced supply chain planning and visibility software like Anaplan, alongside its proprietary Life Cycle Assessment (LCA) tool. This LCA tool is a core piece of technology; it measures the carbon footprint of every product, from raw materials to end-of-life, which informs all product design and sourcing decisions.

The immediate technological focus is on granular visibility. For example, the company uses Radio Frequency Identification (RFID) technology from Sensormatic Solutions to track item-level inventory from the warehouse to the store, which has helped Allbirds achieve up to 99% inventory accuracy in its retail locations. That level of precision is critical for efficient inventory and cash management, especially as the company navigates a challenging market with a full-year 2025 net revenue outlook of $161 million to $166 million.

R&D investment is focused on proprietary sustainable materials, like the $7.2 million spent in 2023.

The core of Allbirds' competitive advantage is its material science, so consistent investment in Research and Development (R&D) is non-negotiable. The company's focus is on replacing virgin petroleum-based materials with natural and recycled alternatives, a process that requires significant upfront capital.

In the 2023 fiscal year, Allbirds invested approximately $7.2 million in R&D, specifically targeting proprietary sustainable material technologies. This investment is designed to support the development of materials like SweetFoam®, their sugarcane-based midsole blend, and to scale up regenerative wool sourcing. The goal is to ensure 75% of materials are sustainably sourced natural or recycled by the end of 2025.

Here's the quick math on their R&D priority:

• 2023 R&D Investment: $7.2 million
• 2023 Total Net Revenue: $254.1 million
• Key Innovation Focus: Creating a net-zero carbon shoe (Project M0.0NSHOT)

This is a long-term play, but it's the only way to meet their target of cutting the per-product carbon footprint in half by 2025.

E-commerce is crucial, representing 72.4% of total revenue in 2023, requiring constant platform optimization.

The Direct-to-Consumer (DTC) model-anchored by e-commerce-is the foundation of the Allbirds brand, allowing for direct feedback and margin control. In 2023, e-commerce sales represented a substantial portion of the company's total sales, at 72.4% of net revenue.

Maintaining that digital channel is a constant technological race. You need a frictionless online experience, especially since the company is shifting its international model to third-party distributors, which puts more pressure on the domestic e-commerce platform to perform.

Platform optimization is not just about speed; it is about conversion. The current focus is on improving the customer experience to drive sales and reduce the cost of acquisition, a key part of their strategic transformation plan.

Increased use of data analytics helps personalize marketing and refine product development based on consumer insights.

Data analytics is the engine behind the strategic transformation, helping the company move away from overemphasizing non-core products. Allbirds uses data to inform two critical areas: product innovation and customer engagement.

For product, the LCA tool is the ultimate data source, allowing teams to prioritize material changes that yield the biggest carbon reduction. For marketing, data helps them understand what content resonates. For instance, their 'Cards on the Table' series generated over 25 million Instagram views and 1 million YouTube views, demonstrating the power of data-driven storytelling that aligns with their core values. This focus on consumer insights is directly tied to the new CEO's plan to reignite the product and brand.

The table below summarizes the technological priorities and their measurable impact:

Allbirds, Inc. (BIRD) - PESTLE Analysis: Legal factors

Nasdaq Compliance Issue Arose in September 2025

You need to keep a close eye on corporate governance requirements, especially for a publicly traded company like Allbirds, Inc. The most immediate legal risk in the latter half of 2025 was a non-compliance notice from the Nasdaq Global Select Market. This issue arose when board member Ann Freeman resigned, effective September 8, 2025, to take a new role at Foot Locker, North America.

Her departure meant the company was no longer in compliance with Nasdaq Listing Rule 5605(b)(1), which mandates that a majority of the board of directors must be independent. The company has a cure period to regain compliance, which is the earlier of one year from September 8, 2025, or its next annual meeting.

The company acted quickly, appointing Lily Yan Hughes as an independent director, effective October 31, 2025. This move is defintely a step toward resolving the compliance status, but the regulatory clock is still ticking until the board composition is fully restored to a majority of independent directors.

Compliance with the California Transparency in Supply Chains Act is Mandatory for U.S. Operations

As a major U.S. retailer and manufacturer, compliance with the California Transparency in Supply Chains Act of 2010 (SB 657) is mandatory for Allbirds' operations. This law requires large companies with annual worldwide gross receipts exceeding $100 million that do business in California to disclose their efforts to eliminate human trafficking and slavery from their supply chains.

The legal requirement is disclosure, not necessarily a change in practice, but consumer and investor scrutiny turns this into an operational mandate. Allbirds must transparently detail its efforts in five key areas: verification, audits, certification, internal accountability, and training. This commitment is a core part of its B Corporation certification and its overall environmental, social, and governance (ESG) framework.

Protecting Proprietary Material Innovations, Like SweetFoam, is a Continuous Intellectual Property Challenge

The company's core value proposition rests on its material science, which creates a continuous legal challenge around intellectual property (IP). Allbirds must balance its mission to open-source sustainable innovations-like the 'recipe' for its net-zero carbon shoe-with the need to protect its commercial advantage.

A concrete example of their IP protection is the sugarcane-based material, SweetFoam. While the material's environmental data may be shared to accelerate industry change, the specific design is legally protected.

• SweetFoam Sole Design: Protected by U.S. Patent No. D877,471.
• Other IP: The company maintains a portfolio of design patents, including those for the Tree Dasher (D1,010,280) and Wool Runner (D859,796), to protect the distinctive look and feel of its footwear.
• Challenge: The open-source approach to sustainability data, while good for the brand, creates a legal tightrope walk, as competitors can easily adopt the underlying material science, forcing Allbirds to rely heavily on its design patents and trade dress (the overall visual appearance of the product) for differentiation.

Global Product Safety and Labeling Standards are Complex, Especially Across Different International Markets

Operating a global business means navigating a patchwork of product safety and labeling laws, which are often more stringent outside the U.S. Allbirds' products are predominantly manufactured internationally and sold across the world, which exponentially increases compliance complexity.

The company's expansion strategy, which included signing a total of 16 global distribution deals as of July 2025 for markets like Israel, Turkiye, and Central Asia, requires a deep understanding of each region's specific import, safety, and consumer protection regulations.

Two major compliance areas stand out for the 2025 fiscal year:

• Chemical Safety: The recent launch of its fully waterproof sneakers in September 2025, which are explicitly made without PFAS (per- and polyfluoroalkyl substances), is a proactive legal and marketing response to the growing global regulatory crackdown on these forever chemicals.
• Carbon Labeling: Allbirds self-imposes a rigorous labeling standard by printing the cradle-to-grave carbon footprint on every product. This commitment is tied to their 'Flight Plan' goal to cut their per-unit carbon footprint in half by the end of 2025, which is a public commitment that carries significant legal and reputational risk if not met.

Allbirds, Inc. (BIRD) - PESTLE Analysis: Environmental factors

The company's 'Flight Plan' aims to cut per-unit carbon footprint in half by the end of 2025.

You need to see a company's environmental strategy as a quantifiable risk and opportunity map, not just a marketing effort. Allbirds, Inc.'s core environmental commitment is the Flight Plan, launched in 2021, which targets a 50% reduction in its average per-product carbon footprint by the end of 2025. This goal covers all Scope 1, 2, and 3 emissions, including manufacturing, transport, customer use, and end-of-life-a comprehensive approach that is defintely more difficult to hit than just focusing on operations.

The company is aiming for a per-unit footprint of less than 1 kg CO2e by 2030, which is the ultimate stretch goal for the industry. Honestly, tying the carbon goals to product design is the only way to make real progress.

Carbon footprint baseline and 2025 targets.

The industry average for a pair of shoes is a staggering 14 kg CO2e. Allbirds started with a lower baseline, and their progress shows the impact of their material science focus. In 2023, the company reported an average product carbon footprint of 7.12 kg CO2e per pair of shoes, which was disclosed in April 2023. This figure is a critical metric for investors because it directly measures the success of their core business model, which is built on sustainable materials.

Here's the quick math: to hit the 50% reduction from a 2021 baseline, the company is pushing for a target of 5.50 kg CO2e by the end of 2025. They've been ahead of schedule, with a 22% drop in the average product carbon footprint in 2023 compared to 2022, which was a reduction of 1.58 kg CO2e.

A 2025 goal is to promote and adopt regenerative agriculture practices in the material supply chain.

A major lever for hitting the 5.50 kg CO2e target is the shift in material sourcing. Allbirds has committed to a significant change in its supply chain through regenerative agriculture (farming practices that improve soil health, which can draw carbon out of the atmosphere).

The specific, measurable goal is that by the end of 2025, 100% of the company's wool will come from regenerative sources. This is crucial because wool, while a natural material, is one of their most carbon-intensive resources due to methane emissions from sheep. The commitment also includes reducing or sequestering all annual on-farm emissions from that wool.

• Source 100% of wool from regenerative sources by 2025.
• Reduce raw material carbon footprint by 25% by 2025.
• Sustainably source 75% of all materials (natural or recycled) by 2025.

Maintaining B Corp certification requires rigorous, triennial recertification.

Allbirds' status as a Certified B Corporation (B Corp) is a formal, third-party validation of its environmental and social performance, which is a key differentiator for the brand. This isn't a one-time badge; it requires a rigorous recertification process every three years.

The company successfully completed its latest recertification in June 2023, achieving an overall B Impact Score of 96.5. This score is well above the median for ordinary businesses, which is currently 50.9. The next recertification will be due around mid-2026, so the company has the 2023 score to maintain and improve upon as they navigate the 2025 Flight Plan targets. What this estimate hides is the increasing difficulty of improving the score as the company grows and its operations become more complex.