Facebook
LinkedIn
X (Twitter)
Sign up
to newsletter

Guidance documents

These Guidance Notes support issuers, lenders and investors with applying the Peace Finance Standard for Peace Bonds or Peace Equity investments effectively, ensuring alignment with peace principles and the UN Sustainable Development Goals. They offer detailed strategies, best practice and tools for successful investment management in fragile and conflict-affected areas.

The Guidance Notes are split into five parts, with the aim to ensure that stakeholders can effectively apply the Peace Finance Standard for Peace Bonds or Peace Equity investments.

PART 1: Peace Finance Impact Framework Guidance Notes: Introduction

This introduction sets the stage for the entire framework, providing an overview of the PFIF's purpose and its relevance in the current financial landscape. It is crucial for users to understand how the introduction interlinks with the subsequent parts of the guidance, each focusing on specific aspects of Peace Finance that will be elaborated on in the other four sections of the guidance notes, outlined below.

PART 2: Introducing the Peace Taxonomy

This document helps to create an understanding of peace dynamics and impacts and delves into the nuanced differences between negative and positive peace, offering a deeper understanding of how various factors contribute to creating and sustaining peaceful societies. It highlights the crucial role of both political peace and social peace in resolving conflicts and grievances in just and non-violent ways. This Guidance Note further introduces the innovative Peace Taxonomy that provides a structured approach for investors and organisations to align their efforts with peace-enhancing outcomes. This section offers insights into the multifaceted nature of peace and how diverse actions can collectively foster a more harmonious world.

PART 3: Applying the Peace Finance Taxonomy

A key resource for professionals in the Peace Finance sector, these notes offer detailed guidance on the verification and evaluation processes for issuing Peace Bonds and Peace Equity, aligning with the Peace Finance Standard and the Peace Finance Impact Framework. They encompass the principles of ICMA Social Bond Principles and Sustainability Guidelines and the Impact Principles, ensuring a robust certification process. This comprehensive guidance is crucial for verifiers, issuers and investors aiming to uphold the highest standards of peace integrity and impact in their financial endeavours.

Navigating the complex world of Peace Finance can be challenging. This guide to the Taxonomy provides a clear and structured approach to help issuers identify and assess potential projects and assets for Peace Bonds or Peace Equity investments. This framework ensures that investments align with key principles such as environmental and social safeguards, the do-no-harm approach, and substantial contributions to peace dimensions.

Key aspects covered include:

Exclusionary criteria: understanding which investments to avoid in fragile and conflict-affected environments.

Minimum social and environmental safeguards: ensuring compliance with international standards for human rights and governance.

Do-no-harm approaches: minimising unintended consequences in all subdimensions.

Contribution spectrum: defining the type and extent of contributions towards peace objectives.

This Taxonomy is a vital tool for issuers, investors and partners committed to supporting peace through responsible and impactful investments. It offers a comprehensive guide to making peace-supporting investments that are socially and environmentally responsible.

 

PART 4: Peace Bond and Peace Equity Framework Guide

Discover how to effectively design and implement a Peace Bond or Peace Equity framework with this comprehensive guide. The document offers insights into aligning any financial strategies with the Peace Taxonomy. It provides detailed guidance on meeting the pre-issuance criteria of the standard, ensuring that the investments contribute positively to global peace efforts.

The guide also delves into the importance of understanding the interconnections between the UN Sustainable Development Goals, particularly highlighting the role of SDG16 (Promote just, peaceful and inclusive societies) in enabling other goals. With a focus on conflict sensitivity and peace additionality, this document provides a roadmap for identifying eligible peace-enhancing projects and assets, ensuring they align with the investor's overall sustainability strategy.

PART 5: Exploring peace partnerships in investment 

This Guidance Notes on peace partnerships helps to identify and select suitable Peace Partners essential for peace-aligned investments.

The guide identifies the key steps for identifying and selecting Peace Partners who can bring the necessary skills, networks and knowledge to investment endeavours. It also offers guidance for the due-diligence process, helping to assess the suitability of potential partners based on their values, track record and impartiality.

Furthermore, the guide delves into the roles and agreements between the issuer and Peace Partners, emphasising the importance of clear terms of reference that outline the scope and objectives of the partnership. It also highlights how this partnership can be a crucial factor in achieving peace alignment and additionality in investments.

Additionally, best practices and lessons learned for public–private partnerships in emerging markets are shared, providing key insights for successful collaboration. Finally, a comprehensive table outlines the various tasks that partners can perform throughout the investment process.

© Finance for Peace 
2024