Enhanced impact: Projects are designed to not only avoid harm but actively contribute to peacebuilding, incorporating conflict-sensitive approaches and do-no-harm principles
The Peace Finance Standard includes a set of criteria and guidelines that issuers must follow to certify their investments as peace positive. This involves a thorough evaluation of the investment's impact on peace, adherence to social and environmental safeguards, and ongoing monitoring and reporting.
The Peace Finance Standard and Certification Scheme have been built on established market practices such as the ICMA Social Bond Principles, Sustainability Guidelines, the Climate Bonds Standard (CBI) and the OPIM Principles. These standards served as a foundation for developing the Peace Bond Standard and Peace Equity Standard. However, the Peace Standards incorporate specific elements and guidelines to address barriers to peace-positive and conflict-sensitive impact development and management, ensuring they are tailored to the unique requirements of Peace Finance.
Eligible projects for Peace Bond or Peace Equity investments are those that directly contribute to peacebuilding and adhere to conflict-sensitive approaches. Key areas include:
Projects must actively contribute to peacebuilding, align with conflict sensitivity and do-no-harm principles, and meet minimum social and environmental safeguards as outlined in the Peace Finance Standard .
The Peace Finance Principles provide explicit operating guidance for investors, issuers, verifiers and other users. They are the guiding lights that ensure all activities under the Peace Finance Standard are aligned with the overarching goal of promoting peace.
In short, the Peace Finance Principles are the bedrock of the PFIF, offering both a vision and clear and actionable guidance for all stakeholders involved in Peace Finance. They ensure that every aspect of Peace Finance is conducted with intentionality, inclusivity, and a focus on building trust and achieving tangible peace outcomes.
These operating principles are designed to complement other internationally recognised risk and impact management principles, ensuring a holistic approach to Peace Finance.
The Peace Finance Principles are integral to the Peace Finance Standard, serving as the foundational guidelines that shape and inform the entire framework. Here’s a brief overview of how these principles relate to the standard:
Four core principles: The Peace Finance Principles consist of four key tenets:
Issuers benefit from enhanced credibility and investor confidence, access to a growing market of impact investors and the opportunity to contribute meaningfully to global peacebuilding efforts. Certification provides the assurance that the Peace Finance Standard is met. This reduces the risks of the investments and also helps in differentiating their offerings in a crowded market.
The certification journey for a Peace Bond or Peace Equity instrument follows a structured process to ensure alignment with the Peace Finance Standard. It is a straightforward process that is facilitated by templates and guidance notes. Issuers can reach out to info@financeforpeace.org for assistance in case of questions.
Yes. Certification applicants should request a quote by contacting info@financeforpeace.org.
The basis of the Peace Finance Standard is built on the ICMA Social Bond Principles and Sustainability Guidelines, the Climate Bonds Standard (CBI) and the Operating Principles for Impact Management. However, the unique elements of the PFS are based on extensive collaboration and valuable insights by a diverse group of stakeholders. This inclusive approach ensures that the standards are practical, impactful and widely applicable.
The integrity of Peace Bonds is paramount. It is essential that the projects funded by these bonds genuinely contribute to peacebuilding and do not contradict the primary peace objectives. To ensure this:
Companies must align their peace-enhancing projects with the Peace Taxonomy. This taxonomy serves as a guideline to define what constitutes a peace-positive project.
Specific criteria have been set that exclude some actors from issuing Peace Bonds. For instance, companies involved in criminal activities are not eligible. These criteria are in place to maintain the integrity and purpose of Peace Bonds.
Comprehensive information: For a detailed understanding of which projects qualify and the criteria for companies, please refer the taxonomy and exclusionary criteria. This in-depth information guides companies interested in issuing Peace Bonds.
The standard applies to a broad range of sectors, with specific exclusion criteria for sectors that are counterproductive to peacebuilding efforts. Priority sectors that are highly consequential for investment in fragile and conflict-affected settings are found here.
The process of verification and evaluation is a critical step in ensuring the integrity of Peace Bonds and Peace Equity investments. This task is performed by pre-approved Peace Finance Verifiers), which are independent entities with the expertise to assess compliance with the standards.
The verifiers are responsible for verifying that all pre-issuance criteria are met before an issuer can proceed with the sale of the bond or equity. This is crucial to ensure that the investments align with the peace-positive objectives from the outset.
The verification typically occurs prior to the issuance of the bond or equity (‘pre-issuance’) to ensure compliance with the standards. However, verifiers also play a role in post-issuance evaluation, continuously assessing the impact and adherence to the standards over time.
Depending on the specific context of each Peace Bond or Peace Equity issuance, the verifier involved in the pre-issuance phase may be the same as or different from the one in the post-issuance phase.
Further information: For more details about the Peace Finance Verifiers, the verification process and how to become a verifier, please visit the verifiers page.
Verifiers can be from diverse backgrounds, including organisations currently offering similar services for sustainable investments.
Those interested in becoming pre-approved verifiers or evaluators can apply through a designated process. This process is designed to assess their expertise, independence and ability to provide thorough and objective evaluations of Peace Bonds and Peace Equity.
To qualify as a Peace Partner, an organisation or entity must have a credible background in peace-related work. This includes a proven track record in peace initiatives, relevant capacities, a strong network, and deep knowledge of the specific context in which they operate.
Peace Partners can range from local organisations deeply embedded in the community to larger intermediary organisations with broader reach. Each type of partner brings unique advantages to a project.
The number of Peace Partners involved in a project can vary. This depends on the project's scope, complexity and specific needs.
Special emphasis is placed on choosing partners who understand the local context and dynamics.
Even though pre-approved Peace Partners will be vetted, it is the responsibility of the issuer to identify and select suitable Peace Partners during the planning phase of a project. This selection should be based on a thorough evaluation of the potential partners' experience and effectiveness in peace-building activities. Guidance for selection can be found here ( Selecting a Peace Partner).
