Recap of Previous Posts Part 1 - Overview of the Public Procurement TED dataset Part 2 - Identification of Entities involved in procurement Part 3 - Attribution of GHG Emissions using the CPV classification In the earlier parts of this series we motivated and defined the scope of our exploration of Public Procurement data, we dug deeper into constructing economic representations of the public procurement process. We also linked procurement entities to private sector sellers.
Recap of Previous Posts Part 1 - Overview of the Public Procurement TED dataset Part 2 - Identification of Entities involved in procurement In the first part of this series we motivated and defined the scope of a study explores Public Procurement data. In the second instalment we dug deeper into an important facet of the data, with the aim of constructing a meaningful economic representation of the public procurement process.
Recap of Previous Post Part 1 - Overview In the first part of this series we motivated and defined the scope of a study that explores Public Procurement data. We discussed the meaning of the main relevant terms (Open Data, Open Source, Green Public Procurement) and briefly reviewed the current state and challenges of the latter in EU context. Further, we took a first look into the EU’s TED Database (which is the main source of data) and highlighted some key statistics which bring to light information such as: size of the dataset, overall structure and some data quality aspects.
Introduction In a series of posts we will explore the role of Open Data and Open Source in enabling and accelerating the broad based effort towards Green Public Procurement (GPP). There are several important (and possibly obscure or “buzzwordy”) terms in the above sentence, so the first order of business will be to unpack them. Let us start with the term Public Procurement which will be the main domain of interest in this study.
What is the EU Datathon? The EU Datathon is an annual Open Data competition organised by the Publications Office of the European Union since 2017. The competitions are organised to create new value for citizens through innovation and promoting the use of open data, in particular the datasets available on the official portal for European data. Every year, EU Datathon calls for innovators from around the world to come up with new ways of using open data to address important societal and environmental challenges, with the condition that they use at least one of the thousands of data sets published on data.
Equinox is an open source platform that supports holistic risk management and reporting in the context of Sustainable Portfolio Management. The platform integrates geospatial information with applicable regulatory and industry standards, for example the GHG Protocol (accounting for Project based, Corporate and City-Wide greenhouse gas emissions), the IPCC Emissions Factor database and further reference data, the PCAF attribution methodologies (and more) to provide a holistic view of the footprint of both individual projects and portfolios.
The Role of Open Risk Manual Taxonomies A taxonomy is the categorization of concepts. It can be a very useful tool in supporting effective knowledge management. Fundamentally a taxonomy is a scheme of classification, typically a hierarchical classification, in which things or concepts are organized into groups or types of increasing specificity. Mathematically, a hierarchical taxonomy is a tree structure of classifications for a given set of objects. It is sometimes also named a containment hierarchy.
Motivation Fig 1. An economic network as a graph. The economy is a complex tangle of various agents that interact via transactions (sales and purchases) and contracts (lending, investing). In recent times more and more techniques from graph theory and network science are brought to bear on economic analysis. On the other hand, ever since the seminal contributions of Leontief, Input-Output Models (IO) have been widely used to describe economic relationships between economic actors (e.
What are Input-Output Models? Environmentally Extended Multi-Regional Input-Output (EE MRIO) tables describe economic relationships of economic actors (e.g. industrial sectors) operating within and between regions and their environmental repercussions. An EE MRIO augments the more basic and historically first proposed Input-Output Models (IO) with additional datasets and/or modeling assumptions in order to provide insights into the environmental foorprint of economic activity. Presently, the emphasis on negative externalities of economic activity (e.
Equinox is an open source platform that supports the holistic risk management and reporting of major sustainable finance projects (the financing of projects with material physical footprint) such as project finance. Equinox aims to integrate in the database a number reference databases that facilitate tasks of sustainable portfolio management. In the current focus such reference material concerns the emissions factors for various processes and activities. In the latest (Solstice Day!) update of the Equinox Project we discuss the integration of reference data an in particular greenhouse gas emissions factors as catalogued in the IPCC Emissions Factors database (EFDB).
The frontpage graphic is adapted from Steffen et al. “Planetary Boundaries: Guiding human development on a changing planet". Science (2015). The Planetary Boundaries concept was proposed in 2009 by this group of Earth system and environmental scientists. The group suggested that finding a “safe operating space for humanity” is a precondition for sustainable development. The framework is based on scientific evidence that human actions since the Industrial Revolution have become the main driver of global environmental change.
Interest in Sustainable Finance is growing What is “Sustainable Finance”? A working definition is: A financial system that takes into account environmental, social and governance considerations to ensure long term sustainability of the human economy. You can imagine that with a scope and ambition that sweeping, the devil hidden in the details will be of gargantuan size. The definitions of so-called ESG factors, the incorporation of sustainability into business strategies, the governance, policies and risk management applicable to ESG Risks, the ESG and climate-related disclosures and the development of “green” financial products are all topics that combine urgency, complexity and potentially dramatic impact.
Bending the Curve - Sustainability as a One Dimensional Exercise The opening of the Global Scenario Group report “Bending the Curve: Toward Global Sustainability” by Paul Raskin, Gilberto Gallopin, Pablo Gutman, Al Hammond and Rob Swart, published in 1998 goes as follows: Over the last few centuries, a mere heartbeat of historic time, humanity has moved to the brink of a new evolutionary milestone - the planetary phase of civilization. The world economy is expanding and becoming more integrated, profoundly reshaping the cultural and political landscape everywhere.
9 things they do not tell you about risk management Risks don’t fall from the sky, they are generated by other people Informal Risk Management was practiced by individuals since time immemorial. This is the domain of intuitive decision-making, assessing a situation on the spot and taking immediate action to avoid obvious risks. Over aeons empirical risk management has collected a treasure of heuristics, rules of thumb and colorful Risk Management One-Liners such as: There is never only one cockroach.
Equinox is an open source platform that supports holistic risk management and reporting of Sustainable Finance (Sustainable Portfolio Management). The platform integrates geospatial information with applicable regulatory and industry standards from EBA, PCAF and Equator Principles to provide a holistic view of the footprint of both individual projects and portfolios, in particular of project finance investments. Motivation Sustainability (understood in environmental, economic and social terms) is emerging as an undisputed constraint that will shape future human activity and more specifically how the financial system facilitates and empowers economic life.
What is the future of stress testing? To speculate on the future of Stress Testing we need first a basic definition what stress testing is. Broadly speaking, the goal of Stress Testing is to assess how a system would behave under adverse conditions that - while not the most likely outcome with the knowledge of today - are within the realm of the plausible. There are, broadly speaking, two types of stress testing: The Real stress testing version and Hypothetical stress testing version.
Is the size of global debt truly “astronomical”? The notion of astronomical numbers and figures is quite frequently seeping in everyday language when large quantities of something are encountered in “normal” life. The strict definition of astronomical is obviously something of, or relating to, astronomy and astronomical observations but in common usage it also denotes something enormously or inconceivably large. This is, of course, because astronomical figures are inconceivably large!
NACE Classification and the EU Sustainable Finance Taxonomy: The integration of climate risk and broader sustainability constraints into risk management is a monumental task and many tools are still lacking. Yet there is strong support and bold initiatives from policy bodies and an increasing focus from the private sector side. The EU (Sustainable Finance) Taxonomy is one such initiative of fundamental significance as it attempts to map at a granular level economic activities with respect to their climate risk mitigation or adaptation potential and create tangible metrics and thresholds to measure progress (the ultimate anti-greenwashing treatment)
Representing economic activity using pictograms: Visualization can produce significant new insights when applied to quantitative data. It is currently undergoing a renaissance that mirrors other developments in computing and data science. Sophisticated open source libraries such as d3.js or matplotlib, to name but a couple, are enabling an ever wider range of users to distill valuable information from the avalanche of data being produced. Yet when it comes to visualizing data that relate to abstract concepts it can be quite difficult to find an appropriate grammar to express the quantitative context.
Accounting probably would not count among the more glamorous of professions. The reasons for that status and whether it is justified are beyond the scope of this brief commentary. What is interesting to note, though, is that the relative attractiveness of accounting is arguably improving, driven by a number of systemic societal developments: the need for more proactive assessment of the state of the world, eliminating the infamous “rear-view mirror” pathology.