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.
Before you install r2dii.match you may want to:
When you are ready, install the released version of r2dii.match from CRAN with:
Or install the development version of r2dii.match from GitHub with:
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 ald:
match_result <- match_name(loanbook_demo, ald_demo)
match_result
#> # A tibble: 502 x 28
#> id_loan id_direct_loant… name_direct_loa… id_intermediate… name_intermedia…
#> <chr> <chr> <chr> <chr> <chr>
#> 1 L1 C294 Yuamen Xinneng … <NA> <NA>
#> 2 L3 C292 Yuama Ethanol L… IP5 Yuama Inc.
#> 3 L3 C292 Yuama Ethanol L… IP5 Yuama Inc.
#> 4 L5 C305 Yukon Energy Co… <NA> <NA>
#> 5 L5 C305 Yukon Energy Co… <NA> <NA>
#> 6 L6 C304 Yukon Developme… <NA> <NA>
#> 7 L6 C304 Yukon Developme… <NA> <NA>
#> 8 L8 C303 Yueyang City Co… <NA> <NA>
#> 9 L9 C301 Yuedxiu Corp One IP10 Yuedxiu Group
#> 10 L10 C302 Yuexi County AA… <NA> <NA>
#> # … with 492 more rows, and 23 more variables: id_ultimate_parent <chr>,
#> # name_ultimate_parent <chr>, loan_size_outstanding <dbl>,
#> # loan_size_outstanding_currency <chr>, 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_ald <chr>, name <chr>, name_ald <chr>,
#> # score <dbl>, source <chr>, borderline <lgl>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: 267 x 28
#> id_loan id_direct_loant… name_direct_loa… id_intermediate… name_intermedia…
#> <chr> <chr> <chr> <chr> <chr>
#> 1 L6 C304 Yukon Developme… <NA> <NA>
#> 2 L13 C297 Yuba City Cogen… <NA> <NA>
#> 3 L20 C287 Ytl Powerseraya… <NA> <NA>
#> 4 L21 C286 Ytl Power Inter… <NA> <NA>
#> 5 L22 C285 Ytl Corp Bhd <NA> <NA>
#> 6 L23 C283 Ypic Internatio… <NA> <NA>
#> 7 L24 C282 Ypfb Corporacion <NA> <NA>
#> 8 L25 C281 Ypf Sa <NA> <NA>
#> 9 L26 C280 Ypf Energia Ele… <NA> <NA>
#> 10 L27 C278 Younicos Ag <NA> <NA>
#> # … with 257 more rows, and 23 more variables: id_ultimate_parent <chr>,
#> # name_ultimate_parent <chr>, loan_size_outstanding <dbl>,
#> # loan_size_outstanding_currency <chr>, 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_ald <chr>, name <chr>, name_ald <chr>,
#> # score <dbl>, source <chr>, borderline <lgl>The result is a dataset with identical columns to the input loanbook, and added columns bridging all matched loans to their ald 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.