In addition to earning rental income, energy saving and emission reduction have become important reasons for pig companies to develop photovoltaics in the context of “carbon neutrality.”
Compared to traditional free-range farming, large-scale pig farming currently requires full control of temperature, air quality, and other environmental conditions, leading to higher electricity consumption. According to the 2022 financial report of Muyuan Shares, the fuel and power costs for pig farming amounted to 2.77 billion yuan, an increase of 52.40% compared to the previous year.
“Solar electricity is cheaper,” said Zhang Renyuan. He explained that his company has signed rooftop photovoltaic construction projects with over 30 companies in an industrial park. Currently, the industrial electricity price charged by the State Grid exceeds 0.70 yuan per kilowatt-hour, while the price per kilowatt-hour for direct use of solar power can be reduced to 0.69 yuan.
Photovoltaics also provide support for reducing carbon emissions for pig companies. As the domestic capital market has increasingly high requirements for ESG (Environmental, Social, and Governance) disclosure, it holds significant importance for pig companies seeking public financing.
In June 2021, the China Securities Regulatory Commission (CSRC) issued revised guidelines for the format of annual and semi-annual reports of listed companies, encouraging companies to disclose the measures and effects taken to reduce their carbon emissions in their regular reports. In December 2021, Li Ming, the director of the listing department of the CSRC, stated that they would steadily promote relevant ESG disclosure efforts.
A middle-level manager from a large pig company revealed to Southern Weekend reporters that he has been promoting the company’s ESG disclosure efforts primarily for the purpose of facilitating financing. With leading pig companies venturing into photovoltaic projects, his company has also accelerated its pace.