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Investing with a Peace-Positive Approach: Sector Relevance and Geographical scope

By considering both sector-specific and geographical factors, we aim to foster investments that are sensitive to the unique challenges and opportunities in each context.

Sector Selection and Relevance in Peace Finance

Taking inspiration from the proposed EU Social Taxonomy, we utilize a sector-specific methodology, aligning with the NACE industrial classification system as an approach to help us identify priority sectors that are either already engaged in peace-oriented investments or are crucial in fragile and conflict-affected settings. Key priority sectors include:

  • Agriculture, Forestry, and Fishing
  • Mining and Quarrying
  • Electricity, Gas, Steam, and Air Conditioning Supply
  • Water Supply; Sewerage, Waste Management, and Remediation Activities
  • Transportation and Storage
  • Construction
  • Information and Communication
  • Financial and Insurance Activities
  • Real Estate Activities
  • Public Administration and Defence
  • Education

Geographical Scope for Peace Impact Projects

Peace impact investments are universally relevant and can be implemented in any geographic setting. While our strategic focus is on catalyzing investments in emerging markets and states affected by conflict and fragility, we recognize that peace impacts can be realized globally, including in middle-income and developed regions.

  • Transversal Peace Impacts: Peace-related issues are not confined to any single region; they are a global concern. Our Taxonomy-aligned projects can address peace impacts in diverse settings.
  • Beyond Political Peace: In more stable, developed areas, peace issues might not be directly linked to 'Political Peace'. However, 'Social Peace' concerns, such as those related to land use, resource distribution, or market dynamics, are highly relevant and can influence the risk profile of investments.
  • Complementary Criteria: The social peace components of the PFIF complement other social impact frameworks, providing a holistic view of investments' impact on peace and stability.

 

 

© Finance for Peace 2023