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Introducing the Peace Taxonomy: A Guide to Peace-positive Investing

The Essence of the Peace Taxonomy The Peace Taxonomy is a vital tool guiding investors and businesses in identifying specific changes they aim to achieve in peace and stability. It categorizes peace impacts into three distinct dimensions, providing clarity and direction for peace-focused investments.

Three Key Dimensions of Peace Impact

  1. Safety and Security: This dimension focuses on reducing violence and conflict, or the fear thereof, known as negative peace. It encompasses various forms of direct physical violence and includes strategies like policing, law enforcement, peacekeeping, and community enforcement. Private sector investments often contribute indirectly to mitigating these forms of violence, with some direct impacts in areas like gender-based violence through specific employment policies and community engagement.
  2. Social Peace: Broader and more systemic than Safety and Security, Social Peace impacts are crucial for investors due to their operational and reputational relevance. This dimension covers a range of factors, from community inequalities to intercommunal violence, emphasizing the need for intentional strategies that go beyond minimum safeguards to create meaningful social peace.
  3. Political Peace: This dimension involves high-level interventions in political relationships and dispute resolution mechanisms. Political Peace is often visible in formal peace agreements or legal changes and requires careful consideration by investors to ensure their activities do not exacerbate conflict dynamics in fragile settings.
1.1 Impact on direct interpersonal violence in the community. 2.1 Impact on Vertical Social Cohesion (State and Society Trust). 3.1 Impact on diplomatic relations between States, and non-State actors. 1.2 Impact on sexual and gender- based violence (SGBV) in the community or household. 2.2 Impact on Horizontal Social Cohesion (Trust between groups). 3.2 Impact on the development of infrastructure or provision of goods and services that support a formal peace process either defined in a peace agreement and/or a recognised part of a peace process. 1.3 Impact on abuse and all forms of violence against children. 2.3 Impact on equitable access of resources and basic services, income and goods (education, health, housing, work, etc.) 3.3 Impact on dispute resolution mechanisms, whether formal or informal and improved perception of justice and human rights issues. 1.4 Impact on collective and intercommunal violence. 2.4 Impact on gender, intergenerational equity or on other group identities such as caste, class, race, ethnicity, religion, political affiliation. 3.4 Impact on transboundary relations (e.g. in the case of cross border energy or water projects). 1.5 Impact on Armed conflict, State-sponsored violence, or violence by non-State actors. 2.5 Impact on governance of public services and trustworthy delivery of basic services. 3.5 Other impact example. 1.6 Impact on conflicts over natural resources. 2.6 Impact on patterns of economic exclusion for marginalised or excluded communities or groups. 1.7 Impact on fear of violence in above categories. 2.7 Impact on the free flow of information, transparency, accountability and corruption in public and private institutions. 1.8 Other impact example. 2.8 Impact on climate resilience and access to cleaner sources of energy. 2.9 Impact on structural grievances that mark the origins of violence (e.g. land rights/titles, access to natural resources). 2.1 Impact on cultural identities and local traditions. 2.11 Other impact example No harm to the other dimensions and subdimensions (DNH) Exclusionary criteria and minimum social and environmental safeguards Peace Impact Dimension 1: Safety and Security Subdimensions 1: Indicative Subdimensions 2: Indicative Subdimensions 3: Indicative Peace Impact Dimension 2: Social Peace Peace Impact Dimension 3: Political Peace

Navigating the Taxonomy for Impactful Investments The Peace Taxonomy helps investors align their strategies with peace-positive outcomes, ensuring their contributions are intentional and effective. It's a framework that not only guides investment decisions but also ensures that these decisions contribute constructively to peace and stability in conflict-affected areas.

© Finance for Peace 2023