First Solar agreed to refrain from using minerals mined from the deep sea, an early win for shareholder environmental activists and a sign their agenda might make progress despite opposition from U.S. President Donald Trump’s administration.
The Tempe, Arizona-based photovoltaic manufacturer will keep the minerals out of its supply chain “until scientific findings are sufficient to assess the environmental risks of this potentially devastating new mining process,” according to a summary of the agreement provided to Reuters by advocacy group As You Sow. In return, the group withdrew a shareholder resolution calling for a moratorium on such minerals.
The step is hardly revolutionary: other companies and governments have made similar commitments on worries that the quest to exploit the seabed for rare metals like those used for electric vehicle batteries could damage the ocean’s ecosystem.
But it could encourage shareholders worried about the backlash against environmental, social and governance (ESG) investment considerations from the Trump Administration and other Republican U.S. officials.
The springtime annual meeting season is approaching against the backdrop of the early days of Trump’s second term, which have brought chaos to disbursal of U.S. foreign assistance, uncertainty for automakers and pressure on corporate diversity programs.
The First Solar deal shows many corporate executives at least remain concerned about environmental matters, said Andrew Behar, CEO of As You Sow, a prolific filer of shareholder resolutions.
“I know everyone is despairing about ESG, but the bottom line to me is that companies want to get better and thrive,” Behar said in a telephone interview.
First Solar representatives did not respond to messages. The company’s website states it is committed to “continuing to exclude deep sea mining” pending more scientific findings.
Behar said his group will submit around 70 resolutions this year, down from 89 in 2024. Many companies remain receptive to talks and to making changes without being pressured by a resolution, Behar said.
Proxy solicitor Georgeson counted 93 ESG-related proposals filed at Russell 3000 .RUA companies to date, with 13 of them withdrawn so far and still time for the total number of deals between activists and stock issuers to increase. That is roughly in line with the pace in 2024, when 99 ESG-related resolutions were filed, and the 103 ESG-related resolutions filed in 2023.
ESG backers also scored a win at Costco Wholesale last month when 98% of shares cast were voted against a measure seeking a report on the risks of its diversity and inclusion efforts. But a group of Republican attorneys general renewed pressure on the company.
Among ESG setbacks, Sanford Lewis, an attorney representing pro-ESG filers, cited a Nov. 29 U.S. Securities and Exchange Commission decision allowing Air Products and Chemicals APD.N to skip a vote on a lobbying report, reversing past stances.
SEC representatives did not respond to messages. The agency’s staff may have made the call due to views of Republican commissioners that the resolutions take up too much corporate attention, he said. But other cases suggest the agency will still move other types of resolutions onto corporate ballots, he said.
SEC staff, he said, “could possibly issue new guidance that clarifies how to draft defensible proposals. Doing so would be better than eliminating these important investor rights entirely.”
(Reuters – Reporting by Ross Kerber; Editing by David Gregorio)