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Using the taxonomy: A step-by-step approach


Get familiar with peace concepts: Understand the nuances between negative and positive peace and how they translate into social and political peace. 

This represents the absence of direct physical violence or the fear of it. In our taxonomy, it is encapsulated under “safety and security”, a crucial dimension of peace.

Social peace impacts are broader and more multi-systemic than the safety and security dimension. Due to their breadth, relevance and links to operational, reputational and other forms of risk, this is perhaps the most fundamental peace dimension, to which investors can make both direct and indirect contributions.

This focuses on formal, often political solutions to conflicts, supported by legal frameworks like peace agreements or international resolutions. Political peace is about creating lasting, formal structures for peace.


Align investments with peace goals and relevant SDGs: Use the taxonomy to ensure your investments contribute to peace in meaningful ways, sensitive to the local context in which they operate with clear contributions to relevant SDGs and national development objectives.


Screen and evaluate projects: Check projects for their alignment with the taxonomy's eligibility criteria, focusing on their potential to enhance peace and meet minimum environmental and social safeguards and compliance with the exclusionary criteria.


Assess peace potential: Identify how investments can contribute to peace, considering their direct, indirect, and do-no-harm impacts.

When we talk about investments contributing to peace, it is essential to understand how these contributions are made and their alignment with broader peace objectives. Here is a simple breakdown:

Holistic contribution: Every activity should contribute to one or more peace objectives. But it is not just about adding to peace; it is equally important to ensure these activities do not harm any other peace objectives or overlook minimal social or environmental safeguards. This approach aligns with the principle of dual materiality, emphasising both positive impact and harm prevention.

Indirect positive contributions: These happen through the processes and outputs of a business. While they might not be the primary goal of a business activity, they play a crucial role in reducing factors that drive conflict or in enhancing factors that promote peace.

Direct positive contributions: This is when the main outputs of investments directly address and mitigate factors that drive conflict or strengthen factors that foster peace. These contributions are intentional and directly linked to core business activities.

In summary, whether an investment’s contribution to peace is direct or indirect, the key is to ensure that it aligns with peace objectives and upholds the highest standards of social and environmental responsibility. By understanding and applying these principles, investors and businesses can make a significant and positive impact on peace and stability.


Track and enhance peace impacts: Use peace-enhancing mechanisms and risk mitigation strategies to boost positive impacts and ensure compliance with the taxonomy.


Report on impact: Showcase how your investments contribute to peace, highlighting the effectiveness of peace-enhancing mechanisms and do-no-harm measures.

© Finance for Peace 2023