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README.Rmd
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---
output: github_document
---
<!-- README.md is generated from README.Rmd. Please edit that file -->
```{r, include = FALSE}
knitr::opts_chunk$set(
collapse = TRUE,
comment = "#>",
fig.path = "man/figures/README-",
out.width = "100%"
)
```
# r2dii.climate.stress.test <a href='https://github.com/2DegreesInvesting/r2dii.climate.stress.test'><img src='https://imgur.com/A5ASZPE.png' align='right' height='43' /></a>
<!-- badges: start -->
[](https://www.tidyverse.org/lifecycle/#experimental)
[](https://github.com/2DegreesInvesting/r2dii.climate.stress.test/actions)
<!-- badges: end -->
The goal of r2dii.climate.stress.test is to provide a tool that can be used to
conduct what-if climate stress test analyses for financial institutions,
supervisors, regulators and other stakeholders. The tool aims at highlighting
potential financial risk in especially climate relevant sectors, split by
production ald_business_unit where required. The sectors covered by the 2DII climate
stress test and therefore by this package, follow mostly the logic of the Paris
Agreement Capital Transition Assessment (PACTA) tool, but can in principle be
adapted to other settings. Application of the code requires availability of
custom data. For more information about the methodology and inquiries on running
a pilot of the stress test in cooperation with 2DII, please contact
## Prerequisites
We assume the user has successfully run at least the matching part of PACTA for Banks to produce the relevant project-specific raw input files. For a complete overview of the necessary prerequisites (including technical setup) please see [Prerequisites](https://2degreesinvesting.github.io/r2dii.climate.stress.test/articles/articles/00-prerequisites.html).
## Installation
Install the development version of r2dii.climate.stress.test from GitHub with:
```r
# install.packages("devtools")
devtools::install_github("2DegreesInvesting/r2dii.climate.stress.test")
```
## Example
* Use `library()` to attach the package
```{r}
library(r2dii.climate.stress.test)
```
* Run climate stress tests
```{r, eval=FALSE}
## run stress testing for assets of type corporate loans using default parameters
run_trisk(
input_path = "/example_project/project_agnostic_input/",
output_path = "/example_project/output",
)
## run stress testing (litigation risk) for asset of type corporate loans using various risk_free_rates to analyse sensitivities
run_lrisk(
input_path = "/example_project/project_agnostic_input/",
output_path = "/example_project/output",
risk_free_rate = c(0.01, 0.03)
)
```
## Details
To actually run an analysis...
* the project directories must be set up,
* input data must be prepared and
* the detailed options available for running the functions ought to be understood.
Detailed information for all these steps and on interpreting the outcomes can be
found in the articles linked [here](https://2degreesinvesting.github.io/r2dii.climate.stress.test/articles/).
## Funding
The development of the stress test methodology and the technical software
implementation was funded by the EU - LIFE PACTA 2.0 (LIFE19 GIC/DE/001294). 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.