First Solar wins early victory for ESG group with the use of deep sea minerals
First Solar has agreed not to use minerals from the deep ocean. This is a win for shareholders and environmentalists, as well as a sign that their agenda may make progress in spite of opposition from U.S. president Donald Trump's government.
According to an agreement summary provided by the advocacy group As You Sow, the Tempe-based photovoltaic company will not include the minerals in its supply chain until "scientific findings are sufficient" to evaluate the environmental risks associated with this potentially destructive new mining process. The group retracted a shareholder resolution that called for a ban on these minerals.
This is not a revolutionary step: other companies have taken similar steps, citing concerns that the search for rare metals used in electric vehicle batteries on the seabed could harm the ocean ecosystem.
It could also encourage investors who are concerned about the Trump Administration's and other Republican U.S. officials' backlash against the environmental, social and corporate governance (ESG), investment considerations.
Springtime is the time for annual meetings. The early days of Trump’s second term have caused chaos in the disbursement of U.S. Foreign Assistance, uncertainty for automakers, and pressure on corporate diversification programs.
Andrew Behar of As You Sow and a prolific shareholder resolution filer said that the First Solar deal shows corporate executives are still concerned about environmental issues.
Behar told a reporter by phone that, "I understand everyone is depressed about ESG. But the bottom line for me is that I believe companies want to improve and thrive."
First Solar representatives have not responded to messages. On its website, the company states that it will "continue to exclude deep-sea mining" until more scientific evidence is available.
Behar stated that his group would submit 70 resolutions in this year. This is down from 89 resolutions in 2024. Behar stated that many companies are open to discussions and willing to make changes, without feeling pressured by resolutions.
Proxy solicitor Georgeson reported that 93 ESG proposals had been filed by Russell 3000 companies, 13 of which have already been withdrawn. There is still time to see the number of activist-stock issuer deals increase. This pace is similar to that of 2024 when 99 ESG related resolutions were filed and 2023's 103 ESG resolutions.
ESG supporters also won a victory at Costco Wholesale when, last month, 98% of the shares cast voted against an initiative requesting a report about its diversity and inclusivity efforts. A group of Republican Attorneys General renewed pressure on the company.
Sanford Lewis, who represents pro-ESG filers and is an attorney, pointed out that the U.S. Securities and Exchange Commission allowed Air Products and Chemicals (APC) to bypass a vote on its lobbying report. This was a reversal of past positions.
SEC representatives didn't respond to messages. He said the agency staff could have made this decision because Republican commissioners felt that these resolutions took up too much corporate time. He said that in other cases, the agency may still put other resolutions on corporate ballots.
He said that SEC staff could "possibly issue new guidelines" to clarify how to write proposals that are defensible. This would be a better option than to eliminate these important investor's rights completely. Reporting by Ross Kerber, Editing by David Gregorio
(source: Reuters)
