Fluence Energy Inc: Establish a Policy for the Use of Deep Sea Mined Minerals

WHEREAS: Global concern is growing about deep sea mining (DSM), the process of extracting minerals from the deep seabed. Studies indicate such mining risks permanently destroying fragile habitats, dramatically reducing biodiversity, and causing irreversible damage to marine ecosystems.[1] DSM machinery dredges the ocean floor, killing sea life in its path and releasing sediment plumes laced with toxic metals into the water column, poisoning marine food-chains.[2] These plumes can cause cascading biodiversity loss far beyond the mining site, potentially disrupting entire food webs,[3] reducing food supply and fisheries-related employment,[4] and harming the ability of oceans to sequester carbon and retain long-held carbon stores in the seabed.[5]

Recent studies have illuminated the importance of an undisturbed seafloor environment to the ocean’s ability to generate oxygen.[6] Studies have also shown that DSM can more than halve wildlife populations,[7] a finding that is particularly concerning considering that over 5,000 new species have been discovered in just one region planned for DSM.[8]

DSM's potentially catastrophic impacts to deep sea marine life and ecosystems have led many countries, civil society groups, and corporations to voice concern. More than 45 governments have called for a moratorium.[9] EV manufacturers, tech giants, solar, battery, and energy storage companies including Sunrun, Samsung, Northvolt, and Addvolt have committed to a global DSM moratorium, pledging to keep their supply chains DSM-free until scientific findings are sufficient to assess or avoid the likely risks.[10] This growing support for a DSM moratorium by countries with major battery related, energy storage markets raises reputational risk and competitiveness and regulatory concerns for companies that allow deep sea mined materials into their supply chains.

Fluence Energy, a leading battery energy storage provider, is widely regarded as a sustainable company, yet has not adopted a commitment to avoid DSM minerals.

The mineral needs of clean energy technologies — such as Fluence Energy’s — are touted as the central driver for developing a DSM industry. Yet, minerals that would be mined from the deep sea are currently readily available terrestrially,[11] and future demand for critical minerals can be reduced by over 50% through a combination of new technology, circular economy strategies, and recycling.[12]

Fluence Energy’s Sustainability Strategy states that it “work[s] proactively to identify and act on opportunities to reduce adverse impacts across key material areas.”[13] A DSM moratorium would align with this strategy and demonstrate the company’s intent to proactively address the risks of this emerging industry, including the reputational harm of being linked to an unnecessary and environmentally harmful industry with an uncertain regulatory future.

BE IT RESOLVED: Shareholders request Fluence Energy sign the moratorium on deep sea mining, committing to a prohibition on the sourcing of deep sea minerals until the precautionary goals of the moratorium are met.

[1] https://www.fauna-flora.org/publications/fauna-flora-deep-sea-mining-report-update-march-2023/, p.28

[2] https://nhm.openrepository.com/handle/10141/622833, p.12

[3] https://www.cell.com/current-biology/fulltext/S0960-9822(23)00815-1

[4] https://www.nature.com/articles/s44183-023-00016-8; https://www.cbd.int/article/food-2018-11-21-09-29-49

[5] https://www.frontiersin.org/journals/marine-science/articles/10.3389/fmars.2021.706161/full; https://www.frontiersin.org/journals/marine-science/articles/10.3389/fmars.2020.00165/full

[6] https://www.nature.com/articles/s41561-024-01480-8

[7] https://www.cell.com/current-biology/fulltext/S0960-9822(23)00815-1?_returnURL=https%3A%2F%2Flinkinghub.elsevier.com%2Fretrieve%2Fpii%2FS0960982223008151%3Fshowall%3Dtrue

[8] https://www.cell.com/current-biology/fulltext/S0960-9822(23)00534-1

[9] https://deep-sea-conservation.org/solutions/no-deep-sea-mining/momentum-for-a-moratorium/

[10] https://www.stopdeepseabedmining.org/endorsers/

[11] https://www.energy-transitions.org/wp-content/uploads/2023/08/ETC-Materials-Report_highres-1.pdf, p.81; https://rmi.org/wp-content/uploads/dlm_uploads/2023/12/xchange_batteries_the_battery_domino_effect.pdf, p.3

[12] https://wwfint.awsassets.panda.org/downloads/the_future_is_circular___sintefmineralsfinalreport_nov_2022__1__1.pdf, p.2