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://www.transitionmonitor.com/). 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.
Installation
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("pak")
pak::pak("RMI-PACTA/r2dii.match")Example
Matching is achieved in two main steps:
1. Run fuzzy matching
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: 326 × 22
#> id_loan id_direct_loantaker name_direct_loantaker id_ultimate_parent
#> <chr> <chr> <chr> <chr>
#> 1 L1 C294 Vitale Group UP15
#> 2 L3 C292 Rowe-Rowe UP288
#> 3 L5 C305 Ring AG & Co. KGaA UP104
#> 4 L6 C304 Kassulke-Kassulke UP83
#> 5 L6 C304 Kassulke-Kassulke UP83
#> 6 L7 C227 Morissette Group UP134
#> 7 L7 C227 Morissette Group UP134
#> 8 L8 C303 Barone s.r.l. UP163
#> 9 L9 C301 Werner Werner AG & Co. KGaA UP138
#> 10 L9 C301 Werner Werner AG & Co. KGaA UP138
#> # ℹ 316 more rows
#> # ℹ 18 more variables: 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_direct_loantaker <chr>, lei_direct_loantaker <chr>,
#> # isin_direct_loantaker <chr>, id_2dii <chr>, level <chr>, sector <chr>,
#> # sector_abcd <chr>, name <chr>, name_abcd <chr>, score <dbl>, …2. Prioritize validated matches
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: 177 × 22
#> id_loan id_direct_loantaker name_direct_loantaker id_ultimate_parent
#> <chr> <chr> <chr> <chr>
#> 1 L6 C304 Kassulke-Kassulke UP83
#> 2 L13 C297 Ladeck UP69
#> 3 L20 C287 Weinhold UP35
#> 4 L21 C286 Gallo Group UP63
#> 5 L22 C285 Austermuhle GmbH UP187
#> 6 L24 C282 Ferraro-Ferraro Group UP209
#> 7 L25 C281 Lockman, Lockman and Lockman UP296
#> 8 L26 C280 Ankunding, Ankunding and Anku… UP67
#> 9 L27 C278 Donati-Donati Group UP45
#> 10 L28 C276 Ferraro, Ferraro e Ferraro SPA UP195
#> # ℹ 167 more rows
#> # ℹ 18 more variables: 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_direct_loantaker <chr>, lei_direct_loantaker <chr>,
#> # isin_direct_loantaker <chr>, id_2dii <chr>, level <chr>, sector <chr>,
#> # sector_abcd <chr>, name <chr>, name_abcd <chr>, score <dbl>, …The result is a dataset with identical columns to the input loanbook, and added columns bridging all matched loans to their abcd counterpart.
Funding
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.