Funk whistleblowing system

Information can be reported by all persons who are aware of human rights and environmental risks or violations of human rights or environmental obligations in connection with the activities of Funk (hereinafter: "Whistleblowers"). These include, in particular, those affected by human rights and environmental risks or those affected and injured by violations of human-rights-related or environmental obligations, such as staff of Funk (employees, staff engaged in vocational training, temporary workers, and persons who are to be regarded as similar to employees because of their economic independence).

In addition, whistleblower reports may be made by third parties who have some kind of relationship or contact with Funk and who observe a violation or shortcoming there, such as professionals who work for fees, freelancers, employees and staff of (sub)contractors, suppliers, business partners and customers. The business partners of  Funk  are encouraged to inform their employees, as potentially affected parties, about Funk's complaints system.

The Reporting Office is also open to external persons who are not directly affected and who (as of yet) have no relationship (or no longer have any relationship) with Funk or its direct and indirect suppliers.

Reports can be made, and should be made, about all facts and circumstances that fall within the scope of the German Supply Chain Due Diligence Act and whose whistleblower report serves to uncover human rights and environmental risks and to clarify, minimise and end violations of human-rights-related or environmental obligation.

Note: human rights risks are states where, due to actual circumstances, there is sufficient likelihood of a breach of one of the following prohibitions:

• Prohibition of child labour, forced labour, slavery
• Prohibition of disregard for occupational safety and freedom of association
• Prohibition of discrimination
• Prohibition of withholding a reasonable wage
• Causing harmful change to the soil, water pollution, air pollution, harmful noise emissions or excessive water consumption
• Prohibition of unlawful eviction and prohibition of unlawful dispossession of land, forests and waters, the use of which secures the livelihood of a person
• Prohibition of the commissioning or use of private or public security forces if, during use of the security forces, legal prohibitions are disregarded, violated or impaired due to lack of training or controls on the part of the company
• Prohibition of any act or omission contrary to duty that goes beyond these alternatives that is directly capable of adversely affecting a protected legal status in a particularly serious manner and whose unlawfulness is obvious upon reasonable assessment of all relevant circumstances

A violation of a human rights obligation is a violation of one of the aforementioned prohibitions.

Environmental risks are states where, due to actual circumstances, there is sufficient likelihood of a breach of one of the following prohibitions:

Prohibition of the production of mercury-added products, the use of mercury and mercury compounds in manufacturing processes and the treatment of mercury waste contrary to the provisions of the relevant conventions

Prohibition of the production and use of chemicals contrary to the provision of the applicable conventions

Prohibition of non-environmentally sound handling, collection, storage and disposal of waste in accordance with the regulations of the applicable conventions

Prohibition of the export and import of hazardous waste and other forms of waste within the meaning of the applicable conventions and European regulations.

A violation of an environmental obligation is a violation of one of the aforementioned prohibitions. The scope of application mentioned also includes all whistleblower reports that promote the resolution of disputes and the settlement of claims of those affected.

Making a whistleblower report about a mere suspicion of a risk or a violation is permitted if the reporting person has sufficient reason to believe that the information reported is true and that this information constitutes facts and circumstances that are relevant for reporting.

It is not necessary for the Whistleblower to have full knowledge or evidence of the suspicion to make a whistleblower report. The justified assumption is already sufficient for a whistleblower report. This means that there is sufficient factual evidence that a corresponding violation has been or will be committed or that a corresponding risk has occurred or will occur.

Whistleblowers who are unsure whether their whistleblower report is related to the provisions of the Supply Chain Due Diligence Act can inform themselves at any time at the Reporting Office

Whistleblowers have the opportunity to make whistleblower reports in the following ways:

a) Reporting Office

 Fun has commissioned the law firm Heuking Kühn Lüer Wojtek to perform the tasks of an outsourced internal reporting office. This is available to Whistleblowers by telephone on the following contact details during regular business hours (Mon.–Fri., 9 am–6 pm); letters and emails can also be sent outside these hours, but will only be processed during regular business hours: Dr Christoph Schork, LL.M. Email: c.schork@heuking.de, Heuking Kühn Lüer Wojtek, Magnusstr. 13 50672 Cologne, Telephone: +49 (0) 221 2052-547.

The information is recorded and processed by experienced lawyers at Heuking Kühn Lüer Wojtek and then forwarded in a legally compliant manner to the office of  Funk  responsible for whistleblower reports.

The submission of complaints is strictly free of charge for Whistleblowers. Any costs for reports made by telephone or post will be reimbursed upon proof. This may not be possible for anonymous reports, which is why Funk recommends submitting anonymous reports via a generally free reporting channel, such as the electronic reporting form or an email.

b) Reporting channels

Whistleblower reports can be submitted at the Reporting Office, using the contact details and subject to the times mentioned above:

• electronically via web form
• by phone
• by email
• by post
• or in person.

c) Communication and dispute resolution

The internal reporting office outsourced to Heuking Kühn Lüer Wojtek is available to the Whistleblower via the reporting channels for questions and to discuss the set of facts and circumstances communicated with experienced lawyers. The Whistleblower will also be expressly made aware of this offer again in the confirmation email.

If the Whistleblower has provided a contact option and has agreed to be contacted, there is the possibility of mutual inquiries and consultation with regard to the reported matter and the processing status of the whistleblower report, as well as for the purpose of dispute resolution.

Confidential treatment of all information and data reported to the Reporting Office is ensured at all times and in every step of handling. This applies, in particular, to the identity and personal data of the Whistleblower, as well as the person(s) affected by the tip-off. Only individual, previously determined, authorised persons who are obliged to act in confidence have access to incoming whistleblower reports and information about the processing of the whistleblower report or follow-up measures.

These are usually the responsible persons of the (Outsourced) Internal Reporting Office at Heuking Kühn Lüer Wojtek, as well as the Compliance Manager and the Executive Director of Funk GmbH who is responsible for Legal/Compliance. The reported data will be treated confidentially, not proactively communicated to third parties, and protected from access by unauthorised persons.

The lawyers at Heuking Kühn Lüer Wojtek are obliged to maintain professional confidentiality in the context of recording, processing and passing on the information. In individual cases, the responsible persons of Funk are made subject to obligations, either by appropriate agreements in their employment contracts or by means of additional agreements, and have been encouraged to maintain confidentiality through training.

If the whistleblower report does not concern Funk Gruppe GmbH, but another company in  Funk  or another organisational unit, the company may pass on the contents of the whistleblower report and the results of the further clarification of the facts and circumstances to this company or to this organisational unit for further processing of the whistleblower report.

During the course of the clarification measures, and when asserting, exercising or defending legal claims, Funk may also rely on the support of professionals who are obliged to maintain confidentiality, such as law firms or auditing companies. In addition, during the clarification and appraisal of the reported facts and circumstances, (technical) service providers may be involved who act for us as processors on the basis of corresponding agreements. They may also become aware of the contents of the whistleblower report, but are obliged to handle the affected data confidentially.

Information about the identity of the Whistleblower or about other circumstances that allow conclusions to be made about the identity of the Whistleblower must be passed on to authorities, courts or third parties in exceptional situations, despite the maintaining of confidentiality. This is the case if disclosing this information to Funk is mandatory, such as in the context of an official investigation (such as an investigative proceedings) or if this is necessary to assert, exercise or defend legal claims. Furthermore, under certain conditions, the reported information must also be disclosed by Funk to other persons named in the report.

In these cases of disclosure of the information by Funk , the Whistleblower – insofar as their identity and/or means of contacting them at Funk are known – will be informed in writing by Funk's Compliance Manager about the disclosure and the reasons for it before the disclosure of the information takes place. This notification shall not be made if the competent authority or the court has informed the Reporting Office that the information would jeopardise corresponding investigations, enquiries or legal proceedings. It is also possible for whistleblowers to make whistleblower reports anonymously.

All persons entrusted with the whistleblower report or with clarifying the facts and circumstances act impartially when processing the whistleblower report. In particular, they act independently without being influenced by Funk and are not bound by instructions (from Funk) regarding their activities in connection with the whistleblower office. In individual cases, they are made subject to obligations, either by appropriate agreements in their employment contracts or by means of additional agreements, and are encouraged to act impartially through training.

After the whistleblower report has been received by the Reporting Office, it is recorded and processed further. If necessary, follow-up measures (preventive and remedial measures) will be initiated after the whistleblower report has been reviewed. The procedure following receipt of a whistleblower report by the Reporting Office usually includes the following steps:

a) Acknowledgement of receipt and protocol check

If they have communicated a contact option for feedback as part of their whistleblower report, the Whistleblower will receive confirmation of receipt from the Reporting Office without delay, at the latest within seven days of receipt of their whistleblower report by the Reporting Office. This confirmation of receipt contains, among other things, the personal data provided by the Whistleblower and the communicated facts and circumstances of the matter. If a log of the content of an (oral) whistleblower report has been prepared by the Reporting Office, the Whistleblower will also be given the opportunity by the Reporting Office to review the log, correct it if necessary, and confirm it by signing or in electronic form, if they have communicated a means of contact for feedback as part of their whistleblower report. If no means of contact are mentioned by the Whistleblower as part of their whistleblower report, neither acknowledgement of receipt nor a review of the log can take place.

b) Filtering and control

After receiving the whistleblower report, the Reporting Office will first check the reported facts for validity and credibility, as well as their relevance for Funk, on the basis of the details communicated.  Further processing of credible and valid information that has been received (forwarding of the facts to the responsible body in the company, clarification of the facts and circumstances, taking follow-up measures) will only take place if this is provided for by law and/or legally permissible. In order to check this, the reported matter is first reviewed with regard to the applicability of the statutory reporting option under the Supply Chain Due Diligence Act and classified according to the type of risks and violations reported. The contents of inconsistent, incomprehensible, non-substantive or unbelievable whistleblower reports will not be processed further by the outsourced internal reporting office (so-called unfounded whistleblower reports). This also applies to unfounded whistleblower reports that are not related in any way to human rights and environmental risks or to the elucidation, minimisation and termination of violations of human-rights-related or environmental obligations. In these cases, only an anonymised report without personal data will be prepared and placed on file, stating that such a report has been received, along with the reasons why the personal data is not being processed and why the report will not be processed further. If the Whistleblower has specified a means of contact as part of their whistleblower report, the Reporting Office will inform the Whistleblower of the fact that their tip-off will not be further processed further. If the Whistleblower does not state any means of contact as part of their report, this information cannot be provided. For the avoidance of doubt, tip-offs of rule violations or other misconduct do not constitute unfounded whistleblower reports for the above purposes and are therefore excluded from this regulation. If the Whistleblower has provided a means of contact and has agreed to be contacted, there is the possibility of mutual enquiries and consultation with regard to the reported matter and the processing status of the report. In particular, contact between Whistleblowers and the Reporting Office enable the further processing of reports in cases of initially "insufficient" reports: if, based on the information available to the Reporting Office, a report may not be reviewed further for legal reasons, there is the possibility of obtaining additional information before it is deleted: either the Whistleblower can contact the Reporting Office again on the basis of the corresponding tip-off and provide the missing information required for further examination, or the Reporting Office can contact the Whistleblower and request further information or documents.

c) Report

Following the outlined procedure and after a legal review, the Outsourced Internal Reporting ffice prepares a report on the whistleblower report – if necessary anonymously (see above) – which contains all relevant and data protection law permissible information of the whistleblower report. As a next step, this report will then be forwarded to the responsible body in the company, the Compliance Manager of Funk. From this point on, the Compliance Manager is responsible for the further legally compliant and confidential processing of the whistleblower report. The further handling of the whistleblower report, and all other measures relating to the whistleblower report, shall be carried out with adherence of the confidentiality obligation from every person and body involved in the whistleblower report. Insofar as the report in the whistleblower's tip-off, or individual information from it, is to be forwarded to other persons inside the company or internal bodies or third parties (for example, to implement follow-up measures), the legality and admissibility of the disclosure of this information must be legally checked in advance, and confidential treatment by the responsible body in the company must be ensured ahead of time. In particular, the persons who may become aware of this data, as well as the process of the intended data processing, must be defined in advance. All persons addressed must be expressly informed of the confidentiality requirement and undertake to observe it.

d) Follow-up measures

After receiving the whistleblower report, the responsible body in the company will check the reported facts for validity and credibility on the basis of the facts communicated and the information available there, as well as the possibility of further data processing. If there is a justified suspected case, Funk, represented by its management, is obliged to initiate investigatory and follow-up measures – in compliance with the statutory provisions. The Compliance Manager of  Funk  decides on the choice and implementation of these (if necessary, in consultation with the management and the Outsourced Internal Reporting Office). Follow-up actions may include, but are not limited to:

• (Further) contact with the whistleblower
• Implementation of internal investigations within Funk's own area of business or at the affected suppliers or respective organisational unit, if necessary, by a commissioned body (e.g., law firm)
• Contacting affected persons and work units
• Referral of the whistleblower to another (competent) body
• Conclusion of the procedure
• Submission of the procedure to a competent body at the company or the organisational unit in question or to a competent authority for the purpose of initiating preventive measures or remedial measures

These and other follow-up measures can also be carried out on behalf of the company by the law firm Heuking Kühn Lüer Wojtek, which is charged with carrying out the tasks of the internal reporting office.

e) Discussion of the facts and offer of dispute resolution

The aim of Funk 's complaints system is, among other things, to uncover and minimise or end human rights or environmental risks or violations of human-rights-related or environmental obligations within the meaning of the Supply Chain Due Diligence Act. Against this background,  Funk  may also offer the Whistleblower a dispute resolution procedure once the facts and circumstances have been discussed between the Outsourced Internal Reporting Office and the Whistleblower.

f) Final feedback by the Reporting Office

If the Whistleblower has communicated a means of contact to the Reporting Office, they will receive feedback from Funk's Compliance Manager, at the latest three months after confirmation of receipt of the whistleblower report, as to what follow-up measures are planned or have been taken with regard to their tip-off, and the reasons on which this decision is based. If the Whistleblower does not state any means of contact as part of their report, this information cannot be provided.

g) Data protection

The use of the whistleblower Reporting Office is voluntary. The processing of personal data, in particular, with respect to the personal data of the Whistleblower, as well as persons affected by the whistleblower report, is carried out in compliance with the data protection regulations of the General Data Protection Regulation and the Federal Data Protection Act (Bundesdatenschutzgesetz). The following data protection notices apply to the data processing of whistleblower reports within Funk. The Heuking Kühn Lüer Wojtek privacy policy applies to the data processing carried out by them.

The effectiveness of the complaints procedure must be checked by Funk at least once a year, as well as on a case-by-case basis. A case-by-case review will take place if Funk has to reckon with a significantly altered or significantly expanded situation with respect to human rights or environmental risks in its own business area or at its direct supplier, for example, as a result of the launch of new products or projects or the establishment of a new business segment of Funk. If necessary, the review will be repeated without delay, and the corresponding measures updated immediately.

Whistleblowers who report a suspicion about facts and circumstances that are relevant for reporting are protected. They may not and will not be reprimanded because of their whistleblower report. Any reprimand or reprisal on account of such a tip-off is prohibited by law and can result in both civil liability (damages) and liability under the law on administrative offences on the part of the responsible persons of Funk .

Whistleblowers therefore have no adverse consequences to fear under criminal, civil or labour law. In particular, Whistleblowers are not threatened with any adverse consequences with regard to their contractual position or their professional progress at Funk. This also applies insofar as a tip-off subsequently proves to be unjustified. Similarly, Funk does not tolerate any retaliation or discrimination whatsoever against Whistleblowers due to their use of the whistleblower Reporting Office. However, this does not apply if Whistleblowers deliberately and intentionally report untrue information, or do so through gross negligence. In such cases, Funk reserves the right to take measures under civil, labour and criminal law to the extent permitted by the law.

In the event of any questions, all persons affected by these rules of procedure have the following options for making contact:

• Outsourced Internal Whistleblower Office of  Funk: Dr Christoph Schork, LL.M., Heuking Kühn Lüer Wojtek, Magnusstr. 1350672 Cologne, Email: c.schork@heuking.de, Telephone: +49 (0) 221 2052-547
• Responsible body in the company: Compliance Manager, Dr Frank Hennings, Funk Gruppe GmbH, Valentinskamp 20 20354 Hamburg, Email: f.hennings@funk-gruppe.de, Phone: +49 (0) 40 359 14-631, Fax: +49 (0) 40 359 14-73631