In 2DegreesInvesting/r2dii.physical.risk: Tools for Assessing Physical Climate Risk to Equity and Bond Portfolios

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r2dii.physical.risk

This repo contains functions, workflows and applications to estimate physical climate risk for physical assets and financial portfolios.

Installation

You can install the development version of r2dii.physical.risk from GitHub with:

# install.packages("devtools")
devtools::install_github("2DegreesInvesting/r2dii.physical.risk", build_vignettes = T)

To access the workflows, you must also clone the repo itself:

git clone https://github.com/2DegreesInvesting/r2dii.physical.risk.git

Methodology

The physical risk methodology implemented here is too detailed to be included concisely in this README. Once you have installed the R package, you can access the methodology from the R console by calling:

vignette('physical-risk-methodology')

Usage

Setting up Project Specifications

Project specifications must be first set in the file setup_project_specifications.R. Things such as paths to input and output data directories are set in this file. The physical risk module requires many different inputs and outputs. An example full directory structure might look something like:

  Users                                                                  
   °--Path                                                               
       °--Dropbox                                                        
          ¦--PortCheck_v2                                                
          ¦   °--10_Projects                                             
          ¦       °--Some_Project                                        
          ¦           °--06_Physical_Risk   #path to final output        
          °--PortCheck                                                   
              °--00_Data                                                 
                  ¦--00_RawData                                          
                  ¦   °--15_Risk                                         
                  ¦       ¦--Climate Data Factory #raw CDF data          
                  ¦       ¦   °--TCFD_Climate_Data-GeoTiff               
                  ¦       ¦       °--GeoTIFF                             
                  ¦       ¦           ¦--Indices                         
                  ¦       ¦           °--Variables                       
                  ¦       °--ClimateAnalytics #raw climate analytics data
                  ¦--01_ProcessedData                                    
                  ¦   °--08_RiskData                                     
                  ¦       ¦--asset_level_data #processed asset-level data
                  ¦       ¦   ¦--distinct_geo_data                       
                  ¦       ¦   °--prepared_ald                            
                  ¦       °--climate_data #processed climate risk data   
                  ¦           °--CDF                                     
                  ¦--06_DataStore #datastore export                      
                  ¦   °--DataStore_export_05172021                       
                  ¦       °--2020Q4                                      

Unfortunately, at this point, most of these datasets are proprietary, and 2DII internal.

It is very important that the output data folder locations are set properly in the setup_project_specifications.R file (otherwise you risk over-writing someone else's project). For example:

# PACTA project path
pacta_project <- "Some_Project"
path_db_pacta_project <- fs::path(r2dii.utils::dbox_port2_10proj(), pacta_project)

# ===============
# set output paths
# ===============

# PACTA project output path
path_db_pacta_project_pr_output <- fs::path(path_db_pacta_project, "06_Physical_Risk")

When you are happy with the specifications set in setup_project_specifications, you can source it from the R console:

source("setup_project_specifications.R")

Running Analysis

Analysis can be run from the R console using:

source("analysis.R")

Optional: Preparing/ Updating Input Data

## Asset Resolution prepare_AR_data.R

## Climate Data Factory prepare_CDF_data.R

## Climate Analytics prepare_climate_analytics_data.R

## Open Street Map prepare_OSM_data.R

2DegreesInvesting/r2dii.physical.risk documentation built on March 21, 2022, 2:03 a.m.