In 2025, there was a change of ownership. After nearly 30 years, Heike Faller handed over the company to her daughter, Ann Michelle Althöfer.

As a member of the Responsible Jewellery Council (RJC), it remains Karl Faller e.K.
to review established guidelines and procedures to ensure continued compliance
with the implementation Code of Practices (COP) in 2025.

In order to comply with these, there are ongoing reviews of conflict and high-risk
areas based on the CAHRA list. A risk assessment of the individual gems and their
origin is also carried out and regularly reviewed by Karl Faller e.K.

The data and changes compared to the previous year of the “WGI“ (Worldwide
Governance Indicators) are also analyzed and recorded. The indicators include voice
and accountability, political stability and absence of violence, government
performance, state governance, rule of law and control of corruption.

On corruption control, Karl Faller e.K. also recorded the “Corruption Perceptions
Index” (CIP) in 2025. This index is intended to represent the perceived (personal
experience) of corruption.

We also aimed to build and maintain strong relationships with suppliers and other
business partners in 2025 to promote responsible business practices throughout our
supply chain. Therefore, we conducted another due diligence review of all
our suppliers.
These are measures to identify and minimize negative social and environmental
impacts, with a focus on addressingissues related to human rights, child labor, and
forced labor.

In terms of suppliers, no serious risks to human rights or labour practices (including
forced labour, child labour, poor labour practices) were identified in 2025. We
continue to encourage our suppliers to join the RJC.
Our customers have also received a questionnaire on these topics again.
Nothing negative was found here either. Some of our customers are already RJC
certified themselves.

Furthermore, it is important for Karl Faller e.K. to continuously develop business
processes from an ethical, social and ecological point of view.

The following measures have been implemented 2025 at company Karl Faller e.K.:

• Introduction of electronic invoicing (still ongoing due to required client
  approvals)
• FSC printing paper
• CO2 compensation for orders
• Water consumption reduced
• Donations (e.g. for charity events in the area, Unicef,
  Deutsches Rotes Kreuz, etc.)
• Seminars on occupational safety
• First-Aid-Course
• Additional to our electric car, we have now another hybrid plug-in car

We will continue to work with our supply chain throughout 2026 to build on these
efforts which will include, where applicable, steps to appropriately manage identified
risks in alignment with our policies and the requirements of the RJC Code of
Practices standard.

The implemented processes and controls to manage the environmental impacts of
our direct business operations are still being enforced.
Re-certification will take place in February 2026.