What is the core of the Faber-Castell allegation?

The company said Costa Rican authorities used a donated factory as a detention site, even though it was meant to serve as a migrant shelter. Court findings flagged rights issues tied to asylum seekers. This raises compliance and reputational questions for a German consumer brand with international visibility.

How could this affect investors in Germany?

Controversy can increase the governance risk premium, trigger stewardship actions, and influence proxy voting. Investors may seek stronger human rights controls for facilities linked to the brand. If responses are slow or incomplete, some funds could tighten exposure or update ESG screens to reflect higher risk.

Which disclosures should investors request now?

Ask for a timeline of events, the current legal status of the site, and any independent inspections. Seek details on engagement with authorities, remedy options for affected people, and how policies will change. Time-bound milestones and third-party verification can help investors judge credibility.

How does this relate to Germany’s Supply Chain Act?

The law expects large companies to assess and address human rights risks. While a state may operate the site, investors should ask how the company documented intent, monitored use, and escalated concerns. Clear controls reduce ESG risk and support reliable sustainability reporting to the market.

Law and Government

February 10: Faber-Castell Says Costa Rica Misused Donated Factory for Detention

ByDanny Kontos February 10, 2026February 10, 2026

Faber-Castell Costa Rica is in focus after the German brand said a donated factory in Costa Rica was used as a detention site for asylum seekers. The site was intended as a shelter, not for Costa Rica detention. Court findings flagged rights issues, which lifts ESG risk for consumer names with Latin America exposure. For investors in Germany, the case tests governance, human rights safeguards, and disclosure quality. We assess what this means for risk pricing and stewardship in 2026.