These tools implement in R a fundamental part of the software PACTA (Paris Agreement Capital Transition Assessment), which is a free tool that calculates the alignment between financial portfolios and climate scenarios (https://2degrees-investing.org/). Financial institutions use PACTA to study how their capital allocation impacts the climate. This package matches data from financial portfolios to asset level data from market-intelligence databases (e.g. power plant capacities, emission factors, etc.). This is the first step to assess if a financial portfolio aligns with climate goals.
Install the released version of r2dii.match from CRAN with:
# install.packages("r2dii.match")Or install the development version of r2dii.match from GitHub with:
# install.packages("devtools")
devtools::install_github("2DegreesInvesting/r2dii.match")library(r2dii.data)
library(r2dii.match)Matching is achieved in two main steps:
match_name() will extract all unique counterparty names
from the columns: direct_loantaker,
ultimate_parent or intermediate_parent* and
run fuzzy matching against all company names in the
abcd:
match_result <- match_name(loanbook_demo, abcd_demo)
match_result
#> # A tibble: 410 × 28
#> id_loan id_direct_l…¹ name_…² id_in…³ name_…⁴ id_ul…⁵ name_…⁶ loan_…⁷ loan_…⁸
#> <chr> <chr> <chr> <chr> <chr> <chr> <chr> <dbl> <chr>
#> 1 L1 C294 Yuamen… <NA> <NA> UP15 Alpine… 225625 EUR
#> 2 L3 C292 Yuama … IP5 Yuama … UP288 Univer… 410297 EUR
#> 3 L3 C292 Yuama … IP5 Yuama … UP288 Univer… 410297 EUR
#> 4 L5 C305 Yukon … <NA> <NA> UP104 Garlan… 406585 EUR
#> 5 L5 C305 Yukon … <NA> <NA> UP104 Garlan… 406585 EUR
#> 6 L6 C304 Yukon … <NA> <NA> UP83 Earthp… 185721 EUR
#> 7 L6 C304 Yukon … <NA> <NA> UP83 Earthp… 185721 EUR
#> 8 L8 C303 Yueyan… <NA> <NA> UP163 Kraftw… 291513 EUR
#> 9 L9 C301 Yuedxi… IP10 Yuedxi… UP138 Jai Bh… 407513 EUR
#> 10 L10 C302 Yuexi … <NA> <NA> UP32 Bhagwa… 186649 EUR
#> # … with 400 more rows, 19 more variables: loan_size_credit_limit <dbl>,
#> # loan_size_credit_limit_currency <chr>, sector_classification_system <chr>,
#> # sector_classification_input_type <chr>,
#> # sector_classification_direct_loantaker <dbl>, fi_type <chr>,
#> # flag_project_finance_loan <chr>, name_project <lgl>,
#> # lei_direct_loantaker <lgl>, isin_direct_loantaker <lgl>, id_2dii <chr>,
#> # level <chr>, sector <chr>, sector_abcd <chr>, name <chr>, …The user should then manually validate the output of [match_name()],
ensuring that the value of the column score is equal to
1 for perfect matches only.
Once validated, the prioritize() function, will choose
only the valid matches, prioritizing (by default)
direct_loantaker matches over ultimate_parent
matches:
prioritize(match_result)
#> # A tibble: 216 × 28
#> id_loan id_direct_l…¹ name_…² id_in…³ name_…⁴ id_ul…⁵ name_…⁶ loan_…⁷ loan_…⁸
#> <chr> <chr> <chr> <chr> <chr> <chr> <chr> <dbl> <chr>
#> 1 L6 C304 Yukon … <NA> <NA> UP83 Earthp… 185721 EUR
#> 2 L13 C297 Yuba C… <NA> <NA> UP69 Consor… 200569 EUR
#> 3 L20 C287 Ytl Po… <NA> <NA> UP35 Bnb Re… 308217 EUR
#> 4 L21 C286 Ytl Po… <NA> <NA> UP63 Cisa S… 226553 EUR
#> 5 L22 C285 Ytl Co… <NA> <NA> UP187 Mr. La… 196857 EUR
#> 6 L23 C283 Ypic I… <NA> <NA> UP297 Wallen… 195929 EUR
#> 7 L24 C282 Ypfb C… <NA> <NA> UP209 Phoeni… 309145 EUR
#> 8 L25 C281 Ypf Sa <NA> <NA> UP296 Viridi… 266457 EUR
#> 9 L26 C280 Ypf En… <NA> <NA> UP67 Coast … 199641 EUR
#> 10 L27 C278 Younic… <NA> <NA> UP45 Ce Ene… 197785 EUR
#> # … with 206 more rows, 19 more variables: loan_size_credit_limit <dbl>,
#> # loan_size_credit_limit_currency <chr>, sector_classification_system <chr>,
#> # sector_classification_input_type <chr>,
#> # sector_classification_direct_loantaker <dbl>, fi_type <chr>,
#> # flag_project_finance_loan <chr>, name_project <lgl>,
#> # lei_direct_loantaker <lgl>, isin_direct_loantaker <lgl>, id_2dii <chr>,
#> # level <chr>, sector <chr>, sector_abcd <chr>, name <chr>, …The result is a dataset with identical columns to the input loanbook, and added columns bridging all matched loans to their abcd counterpart.
This project has received funding from the European Union LIFE program and the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) supports this initiative on the basis of a decision adopted by the German Bundestag. The views expressed are the sole responsibility of the authors and do not necessarily reflect the views of the funders. The funders are not responsible for any use that may be made of the information it contains.