This repository hosts the core TRISK model, allowing to conduct transition risk stress tests on financial assets. The tool enable users to analyze the impact of various climate scenarios on company trajectories, technology valuations, and default probabilities.
Installation
You can install this package directly from GitHub using the pak package in R.
-
Install the
pakpackage if you don’t have it:install.packages("pak") -
Install the transition risk stress testing suite from GitHub:
pak::pak("Theia-Finance-Labs/trisk.model")
Data inputs
Trisk expects 4 dataframes in input:
- assets - Contains data on company assets, including production, technology, and geographical details.
- financial_features - Contains financial metrics needed for the stress test.
- ngfs_carbon_price - Provides carbon pricing data for the climate scenarios.
- scenarios - Holds the details of the climate scenarios including the baseline and shock scenarios. You can download the scenarios data from here.
For details on columns structure, refer to the Vignette on data inputs.
Main Functions
The functions run_trisk()(doc) and run_trisk_model()(doc) are the main functions used to run Trisk simulations.
Note 1: The selected scenario geography needs to be available for the selected baseline and target scenarios. This can be determined from the input scenario data.
Note 2: It is possible to change the scenario geography but that only filters the scenario data. It won’t impact the assets being analyzed depending on their country. Please refer to the package trisk.analysis for complex analyses of Trisk outputs.
You can find an example usage of run_trisk() in the Trisk run from folder Vignette. Note that run_trisk() is a wrapper function around run_trisk_model() that handles disk I/O operations
This project is licensed under the GNU License. See the LICENSE file for more information.