Descriptive analysis of best case and worst case for transition risk profile

This article shows how to calculate the descriptive analysis of equal weight, best case, and worst case for transition risk profile.

Example company-level output of transition risk profile for equal weight, best case, and worst case

companies_id	country	grouping_transition_risk	avg_transition_risk_equal_weight	avg_transition_risk_best_case	avg_transition_risk_worst_case
comp_1	france	1.5C RPS_2030_all	0.25	0.25	0.25
comp_1	france	NZ 2050_2030_all	0.85	0.85	0.85
comp_2	france	1.5C RPS_2030_all	0.10	0.10	0.10
comp_2	france	NZ 2050_2030_all	0.30	0.30	0.30
comp_3	austria	1.5C RPS_2030_all	0.35	0.35	0.35
comp_3	austria	NZ 2050_2030_all	0.55	0.55	0.55
comp_4	austria	1.5C RPS_2030_all	0.70	0.70	0.70
comp_4	austria	NZ 2050_2030_all	0.20	0.20	0.20
comp_5	germany	1.5C RPS_2030_all	0.70	0.70	0.70
comp_5	germany	NZ 2050_2030_all	0.20	0.20	0.20
comp_6	netherlands	1.5C RPS_2030_all	0.70	0.70	0.70
comp_6	netherlands	NZ 2050_2030_all	0.20	0.20	0.20
comp_7	spain	1.5C RPS_2030_all	0.70	0.70	0.70
comp_7	spain	NZ 2050_2030_all	0.20	0.20	0.20

Average avg_transition_risk_equal_weight per grouping_transition_risk and transition_risk_category

thresholds <- add_thresholds_transition_risk(co2, all_activities_scenario_sectors, scenarios) |>
  select(all_of(c("benchmark_tr_score", "transition_risk_low_threshold", "transition_risk_high_threshold"))) |>
  distinct() |>
  rename(grouping_transition_risk = "benchmark_tr_score")

avg_per_benchmark_risk_category <- function(data, col, threshold) {
  data |>
    select(all_of(c("companies_id", "grouping_transition_risk", col))) |>
    distinct() |>
    left_join(threshold, by = c("grouping_transition_risk")) |>
    mutate(risk_category = categorize_risk(.data[[col]], transition_risk_low_threshold, transition_risk_high_threshold)) |>
    summarise(total_mode = n(), .by = c("grouping_transition_risk", "risk_category")) |>
    mutate(proportion = total_mode / sum(total_mode), .by = c("grouping_transition_risk")) |>
    select(-all_of(c("total_mode"))) |>
    distinct() |>
    filter(str_detect(grouping_transition_risk, "all|tilt_subsector")) |>
    filter(!str_detect(grouping_transition_risk, "NA|unit")) |>
    arrange(grouping_transition_risk)
}
avg_transition_risk_equal_weight_per_benchmark_risk_category <- avg_per_benchmark_risk_category(transition_risk_company_example, "avg_transition_risk_equal_weight", thresholds) |>
  rename("Average `avg_transition_risk_equal_weight`" = "proportion")

Bar plot

Average avg_transition_risk_best_case per grouping_transition_risk and transition_risk_category

Bar plot

Average avg_transition_risk_worst_case per grouping_transition_risk and transition_risk_category

Bar plot

Average avg_transition_risk_equal_weight per grouping_transition_risk and transition_risk_category for a country

Bar plots

Average avg_transition_risk_best_case per grouping_transition_risk and transition_risk_category for a country

Bar plots

Average avg_transition_risk_worst_case per grouping_transition_risk and transition_risk_category for a country

Bar plots

Example company-level output of transition risk profile for best case and worst case

companies_id	country	grouping_transition_risk	avg_transition_risk_equal_weight	avg_transition_risk_best_case	avg_transition_risk_worst_case
comp_1	france	1.5C RPS_2030_all	0.25	0.25	0.25
comp_1	france	NZ 2050_2030_all	0.85	0.85	0.85
comp_2	france	1.5C RPS_2030_all	0.10	0.10	0.10
comp_2	france	NZ 2050_2030_all	0.30	0.30	0.30
comp_3	austria	1.5C RPS_2030_all	0.35	0.35	0.35
comp_3	austria	NZ 2050_2030_all	0.55	0.55	0.55
comp_4	austria	1.5C RPS_2030_all	0.70	0.70	0.70
comp_4	austria	NZ 2050_2030_all	0.20	0.20	0.20
comp_5	germany	1.5C RPS_2030_all	0.70	0.70	0.70
comp_5	germany	NZ 2050_2030_all	0.20	0.20	0.20
comp_6	netherlands	1.5C RPS_2030_all	0.70	0.70	0.70
comp_6	netherlands	NZ 2050_2030_all	0.20	0.20	0.20
comp_7	spain	1.5C RPS_2030_all	0.70	0.70	0.70
comp_7	spain	NZ 2050_2030_all	0.20	0.20	0.20

Descriptive analysis of avg_transition_risk_equal_weight per grouping_transition_risk

Descriptive analysis of avg_transition_risk_equal_weight per grouping_transition_risk

	avg_transition_risk_equal_weight
grouping_transition_risk	average	median	25th_quantile	75th_quantile
1.5C RPS_2030_all	0.5000000	0.7	0.3	0.700
NZ 2050_2030_all	0.3571429	0.2	0.2	0.425

Descriptive analysis of avg_transition_risk_best_case per grouping_transition_risk

Descriptive analysis of avg_transition_risk_best_case per grouping_transition_risk

	avg_transition_risk_best_case
grouping_transition_risk	average	median	25th_quantile	75th_quantile
1.5C RPS_2030_all	0.5000000	0.7	0.3	0.700
NZ 2050_2030_all	0.3571429	0.2	0.2	0.425

Descriptive analysis of avg_transition_risk_worst_case per grouping_transition_risk

Descriptive analysis of avg_transition_risk_worst_case per grouping_transition_risk

	avg_transition_risk_worst_case
grouping_transition_risk	average	median	25th_quantile	75th_quantile
1.5C RPS_2030_all	0.5000000	0.7	0.3	0.700
NZ 2050_2030_all	0.3571429	0.2	0.2	0.425

Descriptive analysis of avg_transition_risk_equal_weight per grouping_transition_risk for a country

Descriptive analysis of avg_transition_risk_equal_weight per grouping_transition_risk for country france

		avg_transition_risk_equal_weight
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
france	1.5C RPS_2030_all	0.175	0.175	0.1375	0.2125
france	NZ 2050_2030_all	0.575	0.575	0.4375	0.7125

Descriptive analysis of avg_transition_risk_equal_weight per grouping_transition_risk for country austria

		avg_transition_risk_equal_weight
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
austria	1.5C RPS_2030_all	0.525	0.525	0.4375	0.6125
austria	NZ 2050_2030_all	0.375	0.375	0.2875	0.4625

Descriptive analysis of avg_transition_risk_equal_weight per grouping_transition_risk for country germany

		avg_transition_risk_equal_weight
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
germany	1.5C RPS_2030_all	0.7	0.7	0.7	0.7
germany	NZ 2050_2030_all	0.2	0.2	0.2	0.2

Descriptive analysis of avg_transition_risk_equal_weight per grouping_transition_risk for country netherlands

		avg_transition_risk_equal_weight
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
netherlands	1.5C RPS_2030_all	0.7	0.7	0.7	0.7
netherlands	NZ 2050_2030_all	0.2	0.2	0.2	0.2

Descriptive analysis of avg_transition_risk_equal_weight per grouping_transition_risk for country spain

		avg_transition_risk_equal_weight
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
spain	1.5C RPS_2030_all	0.7	0.7	0.7	0.7
spain	NZ 2050_2030_all	0.2	0.2	0.2	0.2

Descriptive analysis of avg_transition_risk_best_case per grouping_transition_risk for a country

Descriptive analysis of avg_transition_risk_best_case per grouping_transition_risk for country france

		avg_transition_risk_best_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
france	1.5C RPS_2030_all	0.175	0.175	0.1375	0.2125
france	NZ 2050_2030_all	0.575	0.575	0.4375	0.7125

Descriptive analysis of avg_transition_risk_best_case per grouping_transition_risk for country austria

		avg_transition_risk_best_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
austria	1.5C RPS_2030_all	0.525	0.525	0.4375	0.6125
austria	NZ 2050_2030_all	0.375	0.375	0.2875	0.4625

Descriptive analysis of avg_transition_risk_best_case per grouping_transition_risk for country germany

		avg_transition_risk_best_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
germany	1.5C RPS_2030_all	0.7	0.7	0.7	0.7
germany	NZ 2050_2030_all	0.2	0.2	0.2	0.2

Descriptive analysis of avg_transition_risk_best_case per grouping_transition_risk for country netherlands

		avg_transition_risk_best_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
netherlands	1.5C RPS_2030_all	0.7	0.7	0.7	0.7
netherlands	NZ 2050_2030_all	0.2	0.2	0.2	0.2

Descriptive analysis of avg_transition_risk_best_case per grouping_transition_risk for country spain

		avg_transition_risk_best_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
spain	1.5C RPS_2030_all	0.7	0.7	0.7	0.7
spain	NZ 2050_2030_all	0.2	0.2	0.2	0.2

Descriptive analysis of avg_transition_risk_worst_case per grouping_transition_risk for a country

Descriptive analysis of avg_transition_risk_worst_case per grouping_transition_risk for country france

		avg_transition_risk_worst_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
france	1.5C RPS_2030_all	0.175	0.175	0.1375	0.2125
france	NZ 2050_2030_all	0.575	0.575	0.4375	0.7125

Descriptive analysis of avg_transition_risk_worst_case per grouping_transition_risk for country austria

		avg_transition_risk_worst_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
austria	1.5C RPS_2030_all	0.525	0.525	0.4375	0.6125
austria	NZ 2050_2030_all	0.375	0.375	0.2875	0.4625

Descriptive analysis of avg_transition_risk_worst_case per grouping_transition_risk for country germany

		avg_transition_risk_worst_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
germany	1.5C RPS_2030_all	0.7	0.7	0.7	0.7
germany	NZ 2050_2030_all	0.2	0.2	0.2	0.2

Descriptive analysis of avg_transition_risk_worst_case per grouping_transition_risk for country netherlands

		avg_transition_risk_worst_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
netherlands	1.5C RPS_2030_all	0.7	0.7	0.7	0.7
netherlands	NZ 2050_2030_all	0.2	0.2	0.2	0.2

Descriptive analysis of avg_transition_risk_worst_case per grouping_transition_risk for country spain

		avg_transition_risk_worst_case
country	grouping_transition_risk	average	median	25th_quantile	75th_quantile
spain	1.5C RPS_2030_all	0.7	0.7	0.7	0.7
spain	NZ 2050_2030_all	0.2	0.2	0.2	0.2