Industry Investment Rating - The report highlights the photovoltaic (PV) industry as a key driver of global energy transition, with a strong growth outlook and significant market potential [2][4] Core Viewpoints - The PV industry is expected to lead global energy capacity growth, with a projected compound annual growth rate (CAGR) of 21.3% from 2021 to 2030, increasing its market share from 11.3% to 37.1% [2] - Global PV installations are forecasted to reach 660GW by 2028, driven by regional policies and renewable energy targets [4] - China's PV industry has evolved from subsidy dependence to market-driven development, with a strong global presence across the entire supply chain [5] Regional Development Trends - Europe aims for 320GW and 600GW of cumulative PV installations by 2025 and 2030, respectively, with a target of 45% renewable energy generation [4] - The US is expected to add 570GW of PV capacity over the next decade, supported by the Inflation Reduction Act and investment tax credits [4] - India targets 300GW of PV installations by 2030, with annual additions of 20-30GW, while Southeast Asia and the Middle East also show strong growth potential [4] Industry Chain Analysis - The upstream silicon and wafer segments are highly concentrated, with cost control and production efficiency being critical for profitability [6][7] - The midstream battery and module segments face intense competition due to rapid technological advancements and vertical integration strategies [7] - The downstream EPC and power plant investment segments are driven by cost efficiency, with increasing demand for distributed PV systems [7] Technological Trends - N-type batteries, including TOPCon and HJT, are gaining traction with conversion efficiencies reaching 24%-25%, surpassing traditional P-type PERC cells [18][19] - Leading PV companies are investing heavily in R&D to stay ahead in the technology race, adopting a "mass production, R&D, and reserve" strategy [19] Distributed PV Growth - Distributed PV installations in China reached 29.27GW in 2021, accounting for 55% of total new PV capacity, driven by policy support and cost reductions [20][21] - Commercial and industrial (C&I) distributed PV is a key growth area, with annual installations increasing from 5GW in 2020 to 53GW in 2023 [23] Operational and Maintenance (O&M) Market - China's PV O&M market is projected to grow from 24 billion yuan in 2023 to 50 billion yuan by 2028, driven by the increasing need for efficient maintenance of existing PV assets [28][29] - Digitalization is seen as a key strategy for reducing O&M costs and improving efficiency, with potential to enhance service value and lower labor costs [33][34] Strategic Recommendations - Companies should focus on business growth, lean operations, and diversified collaboration to navigate the energy transition and maintain competitive advantage [35][36] - Key tactics include optimizing EPC costs, maximizing asset value, and integrating resources across the value chain to drive innovation and efficiency [36]

Industry Overview - The report focuses on the green supply chain transformation, emphasizing the importance of ESG (Environmental, Social, and Governance) in supply chain management [3] - ESG in supply chains involves managing environmental impacts, ensuring social responsibility, and maintaining governance transparency [4][5] - Increasingly strict ESG disclosure requirements globally and domestically are pushing companies to adopt ESG practices [6] ESG Maturity and Trends - Global ESG maturity is still low, with only 10% of companies being leaders, while in China, 20% are leaders and 40% are competitors [10] - Companies are moving towards becoming ESG leaders, with 60% of surveyed companies in China being leaders or competitors [10] - Key challenges in green supply chain transformation include supplier collaboration, data quality, and high costs of green solutions [12][13] ESG Strategy and Implementation - Nearly 60% of companies have clear sustainability strategies and implementation plans, while 40% have integrated ESG goals into their supply chain strategies [16][17] - 75% of companies have set ESG KPIs in at least one supply chain segment, and 70% have established independent sustainability departments [22][25] - Leading companies are faster in implementing ESG strategies, with actions twice as fast as non-leaders [26] Circular Economy and Product Adjustments - 65% of companies are adopting circular business models as a core action plan, focusing on sustainable product design and material sourcing [27][28] - Leading companies are redesigning products and business models to align with ESG goals, with 80% of leaders making significant adjustments compared to 15% of non-leaders [29] Green Supply Chain Transformation - 40% of companies are focusing on product design and R&D for green transformation, as it impacts subsequent supply chain segments like procurement and production [30][31] - Sustainable products account for less than 25% of total products in most companies, with higher proportions mainly in the new energy vehicle sector [32] - Green procurement has made progress, but only 25% of companies have over 50% of their procurement spending on sustainable materials [33] Cost and Benefits of Green Transformation - 70% of companies face increased procurement and production costs, but 30% have achieved cost savings through green practices [35] - 77% of companies believe green supply chain transformation has positive economic and social benefits, with 15% achieving cost reductions [35] - 54% of companies plan to increase investment in green transformation over the next 3-5 years, despite short-term cost increases [35] Case Studies - **Boehringer Ingelheim**: Achieved cost savings through green R&D and procurement, with a 77.01% improvement in energy efficiency since 2014 [61] - **Polestar**: Reduced CO2 intensity per car by 8% in 2022 and aims for climate-neutral cars by 2030 [62] - **Interface**: Reduced carbon footprint by 82% since 1996 and won the 2020 UN Climate Action Award [63] - **Ganfeng Lithium**: Achieved an A rating in MSCI ESG and focuses on sustainable lithium extraction and recycling [64] - **Siemens Energy**: Achieved 100% renewable energy use globally in 2023 and supports supplier decarbonization [65] - **Bekaert**: Developed sustainable steel products for tires and energy transition, achieving an AA rating in MSCI ESG [66] - **Autoliv**: Committed to net-zero emissions by 2040 and launched a green bond of €500 million [67]