Exclusionary Criteria
Guiding your investments: Understanding and compliance with exclusionary criteria
When making investments, it is crucial to know not just where to invest, but also where not to. The taxonomy provides clear exclusionary criteria, helping you make responsible and ethical investment choices. These criteria are divided into two categories: by sector and by character.
Exclusionary criteria by sector |
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| Avoiding arms and weapons | We exclude investments in businesses involved in the manufacture or sale of heavy weapons, ammunition, chemical weapons, mines or small arms. | |
| Steering clear of illicit drugs | Any investment that supports the manufacture of drugs not permitted by legal and international regulations is off limits. | |
| Protecting natural forests | We do not invest in agricultural or afforestation activities on land that is primary forest, in high conservation-value areas or in legally protected zones. | |
Exclusionary criteria by character |
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| Upholding international humanitarian law | Investments that breach the Geneva Conventions and their additional protocols are strictly prohibited. | |
| Respecting human rights and labour standards | We do not invest in activities that cause human rights violations, breach labour standards or are associated with corruption. | |
| Preventing exploitation | Any investment linked to slavery, child labour, human trafficking or sexual exploitation is excluded. | |
| No companies with criminal activities | We do not invest in companies involved in criminal activities, whether related to environmental, social, governance or other areas. | |
Exclusionary criteria by other environmental and social considerationsIn line with the European Development Finance Institutions’ EDFI Principles for Responsible Financing of Sustainable Development, our approach to peace-positive and conflict-sensitive investing extends to protecting high conservation-value (HCV) areas. These areas are not just natural habitats; they are vital ecosystems that play a crucial role in the well-being of local communities. |
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| Protecting high conservation-value (HCV) areas | HCV areas are defined as natural habitats that are essential for environmental health and biodiversity. Our exclusionary criteria include the protection of these areas, recognising their importance in maintaining ecological balance. | |
| Acknowledging the role of natural resources | We understand that natural resources are not just environmental assets but are also deeply intertwined with the livelihoods and cultures of local communities. Our investment criteria take into account the significance of these resources to the people who depend on them. | |
| Understanding the ecological–social connection | In conflict-sensitive investments, it is crucial to note the link between ecological landscapes and the broader social context. Our criteria reflect this understanding, ensuring that investments do not disrupt this delicate balance. | |
| Ensuring peace and sustainability | By considering the impact of investments on natural resources and local communities, we align our financial decisions with the goal of fostering peace and sustainable development. This approach underlines the importance of environmental stewardship as a key component of peace-oriented investments. | |
Minimum Safeguards
Guiding your investments: Enhancing responsible investing with the taxonomy’s minimum safeguards
International standards as our foundation
The Peace Finance Impact Framework is built on internationally recognised instruments, including:
- The International Bill of Human Rights
- The United Nations Covenants on Civil and Political Rights and on Economic, Social, and Cultural Rights
- The International Labor Organization Declaration on Fundamental Principles and Rights at Work
- The OECD Guidelines for Multinational Enterprises (including the environmental chapter)
- The United Nations Guiding Principles on Business and Human Rights.
These instruments form the minimum environmental and social safeguards that guide our investment decisions.
Adapting to emerging global standards
Looking ahead, we are ready to integrate new standards as they emerge:
- The proposed European Union Corporate Sustainability Due Diligence Directive, once enacted, will become a part of our minimum safeguards. That said, the use of the Peace Finance Standard provides the assurances that the heightened due diligence and meaningful stakeholder engagement criteria under the directive are met.
- National initiatives like the German Supply Chain Due Diligence Act and the Netherlands Responsible and Sustainable International Business Conduct Act will also be included as they come into force.
The AAAQ framework: A tool for responsible provision of goods and services
We also embrace the availability, accessibility, acceptability and quality (AAAQ) concept by the International Covenant on Economic, Social and Cultural Rights:
- Availability: ensuring sufficient quantity of a good or service
- Accessibility: making sure goods and services are affordable, physically reachable, non-discriminatory, and accompanied by relevant information
- Acceptability: providing goods and services in an ethically and culturally appropriate manner
- Quality: guaranteeing safety and adherence to internationally recognised standards.
Applying AAAQ in our investments
The AAAQ concept is not just a guideline – it is a practical tool for measuring impacts, screening for do-no-harm principles and establishing minimum social safeguards. In our taxonomy, investments that inherently benefit peace and meet these AAAQ criteria are considered eligible.
By integrating these safeguards and the AAAQ framework, we ensure that our investments contribute positively to society and the environment, aligning with our commitment to responsible investing.