Allbirds tweaks eco claims after regulatory pressure

SAN FRANCISCO – US-based sneaker business Allbirds felt pressured by regulatory authorities into dropping the eco claim that it would be the first ‘sustainable’ IPO prior to trading on its stock beginning last week. The company, known for its wool sneakers and slip-ons, opened its first trade at US$21.21, after pricing 20.2 million shares a day earlier at US$15 apiece.

In August, Allbirds had in its IPO filings that it would pursue a “sustainable public equity offering” to meet environmental, sustainability, and governance standards. But the UK’s Financial Times is now reporting that the business has subsequently filed updates to its IPO prospectus that weakened the promise until the sustainable “offering” was dropped in favour of “sustainability principles and objectives.”