(The opinions expressed here are those of the author, a

columnist for Reuters. This column is part of the weekly Reuters

Sustainable Finance newsletter, which you can sign up for here https://www.reuters.com/newsletters/reuters-sustainable-finance/)

By Ross Kerber

Feb 5 (Reuters) - First Solar ( FSLR ) 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 ( FSLR ) 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 ( FSLR ) 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 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 ( COST )

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 )

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."