First Solar - 1792 Exchange

Rating Overview

First Solar is Medium Risk.

First Solar is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	Medium Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

First Solar integrates ESG into its business practices. From its Supplier Quality Manual: “First Solar has set science-based targets for greenhouse gas (GHG) emissions from its manufacturing facilities (Scope 1-2) and supply chain (Scope 3)” (1). From its 2023 Sustainability Report: ” We leverage third-party tools and indexes on global slavery, forced labor and other environmental, social, governance (ESG) aspects to identify high-risk suppliers based on industry, geography and spend” (2). However, the company has not canceled customers, suppliers, or vendors based on political views or religious beliefs (3).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

First Solar does not discriminate against charitable organizations based on views or beliefs. However, it will only give to religious organizations that provide non-sectarian services (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

First Solar offers allyship training to its employees (1)(2). The company appears to prioritize diversity over merit in its recruitment and leadership composition. From its 2023 Sustainability Report: “We are committed to including one or more qualified diverse candidate in each search process for new Board members and new members of the Executive Leadership Team. We are also committed to using a search firm to broaden our Board recruiting pipeline in instances where one or more qualified diverse candidates have not been identified among our Directors’ or Executive Leadership Team’s personal networks” (3). First Solar is an affirmative action employer. “First Solar’s policies, including its Affirmative Action Programs” (4). The company protects its employees against viewpoint discrimination (5).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

First Solar is committed to net zero emissions by 2050 (1). The company supports DEI within its business practices. From its 2023 Sustainability Report: “Inclusion, Diversity & Belonging At First Solar, inclusion, diversity and belonging is more than a program or an initiative, it is a transformation. We recognize that diversity and inclusion (D&I) is a driving force in the success of our company and believe in creating an environment where different voices are encouraged, heard and valued including, gender, race, ethnicity, sexual orientation, military status, generation, abilities, perspectives, backgrounds and personalities. First Solar has integrated inclusion, diversity and belonging goals and measures throughout, translating our global strategy into local action. We believe in comprehensive actions at every level to drive foundational change in the culture and promote a diverse and inclusive workplace” (2). First Solar supports ESG within its business practices. From its 2023 Sustainability Report: “This cross-functional ESG taskforce is also responsible for identifying strategic ESG risks, opportunities, gaps and challenges, anticipating ESG trends that could impact the company, and proposing new ESG policies, practices, targets, metrics and disclosures” (3). The company pledged to invest $1.4 Billion into Solar panel manufacturing facilities in Louisiana and South Carolina (4)(5).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Medium

Rationale:

First Solar has sponsored multiple pride parades in Arizona and Ohio to show its support for the LGBTQ+ Community (1)(2)(3)(4). Otherwise, it has not used corporate funds to advance ideological causes, organizations, or policies (5).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

Lower

Rationale:

First Solar has not used its PAC donations or lobbying for ideological purposes (1)(2)(3).