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.
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 abcd:
match_result <- match_name(loanbook_demo, abcd_demo)
match_result
#> # A tibble: 329 × 28
#> id_loan id_direct_loantaker name_direct_loantaker id_intermediate_pare…¹
#> <chr> <chr> <chr> <chr>
#> 1 L1 C294 Vitale Group <NA>
#> 2 L3 C292 Rowe-Rowe IP5
#> 3 L5 C305 Ring AG & Co. KGaA <NA>
#> 4 L6 C304 Kassulke-Kassulke <NA>
#> 5 L6 C304 Kassulke-Kassulke <NA>
#> 6 L7 C227 Morissette Group <NA>
#> 7 L7 C227 Morissette Group <NA>
#> 8 L8 C303 Barone s.r.l. <NA>
#> 9 L9 C301 Werner Werner AG & Co. KG… IP10
#> 10 L9 C301 Werner Werner AG & Co. KG… IP10
#> # ℹ 319 more rows
#> # ℹ abbreviated name: ¹id_intermediate_parent_1
#> # ℹ 24 more variables: name_intermediate_parent_1 <chr>,
#> # 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>, …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 × 28
#> id_loan id_direct_loantaker name_direct_loantaker id_intermediate_pare…¹
#> <chr> <chr> <chr> <chr>
#> 1 L6 C304 Kassulke-Kassulke <NA>
#> 2 L13 C297 Ladeck <NA>
#> 3 L20 C287 Weinhold <NA>
#> 4 L21 C286 Gallo Group <NA>
#> 5 L22 C285 Austermuhle GmbH <NA>
#> 6 L24 C282 Ferraro-Ferraro Group <NA>
#> 7 L25 C281 Lockman, Lockman and Lock… <NA>
#> 8 L26 C280 Ankunding, Ankunding and … <NA>
#> 9 L27 C278 Donati-Donati Group <NA>
#> 10 L28 C276 Ferraro, Ferraro e Ferrar… <NA>
#> # ℹ 167 more rows
#> # ℹ abbreviated name: ¹id_intermediate_parent_1
#> # ℹ 24 more variables: name_intermediate_parent_1 <chr>,
#> # 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>, …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.