Peace Finance Standard
Turning Principles into Practice for Peace-Positive Investment
The Peace Finance Standard (PFS) is the certification and alignment tool used to structure investments that intentionally contribute to peace. It ensures that investments are inclusive, locally grounded, and aligned with internationally recognised sustainability and peace goals.
The PFS applies to a wide range of instruments — from bonds and funds to enterprises and projects — and enables them to be certified as peace-positive through a flexible but rigorous five-step process.
As a core part of the Peace Finance Impact Framework (PFIF), the Standard translates the Peace Finance Principles and Peace Taxonomy into practical, verifiable action. It was developed through collaboration with UN agencies, peacebuilding organisations, financial institutions, and communities in fragile contexts — ensuring it is both credible and usable.
What Does Peace-Positive Mean?
A peace-positive investment intentionally contributes to peace and social cohesion, especially in fragile or conflict-affected settings. It does this by:
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Aligning with the Peace Taxonomy and targeting outcomes that address drivers of conflict or build the conditions for peace;
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Ensuring inclusivity and local ownership throughout the investment lifecycle;
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Embedding safeguards and Peace Enhancing Mechanisms (PEMs) to mitigate risks and maximise social benefit;
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Delivering additional peace impact beyond what would happen in a business-as-usual scenario;
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De-risking investments by addressing root causes of instability — helping reduce conflict-related risk premiums, build stakeholder trust, and unlock long-term investability, market access and new opportunities.
Peace-positiveness is not incidental — it is a deliberate design feature that is verified and tracked over time.
Five-Step Process
The Peace Finance Standard is applied through five clear steps. These steps translate the Peace Finance Principles into action and can be used across bonds, funds, enterprises and projects.| Steps | What Happens | Principles in Action |
| 1. Define Goals | Conduct a peace and conflict analysis with local Peace Partners. Co-design the theory of change and align with the Peace Taxonomy. | Peace Intentionality and Inclusivity |
| 2. Structure the Investment | Co-develop Peace Enhancing Mechanisms (PEMs), agree on peace impact indicators, and apply safeguards. | Dual Materiality, Inclusivity, and Intentionality |
| 3. Execute with Integrity | Implement with community engagement, adaptive risk management, and PEMs such as inclusive hiring or governance support. | Trust-Building, Inclusivity, and Transparency |
| 4. Verify and Learn | Independent verifiers and Peace Partners assess outcomes. Use community feedback to adjust implementation. | Accountability, Transparency, and Trust-Building |
| 5. Report and Improve | Publish annual Peace Impact Reports. Maintain certification through continued alignment, dialogue, and course correction. | Sustainability, Accountability, and Trust |
Applying the Peace Finance Standard
The Peace Finance Standard (PFS) can be applied to different investment types through dedicated sub-standards. These include use-of-proceeds bonds, funds (including equity and blended vehicles), enterprises, and special projects. Below are two examples showing how the PFS is used by different issuers and fund managers.
PFS for Bond Issuers
The Peace Finance Standard for bond issuers builds on best practices such as ICMA’s Social Bond Principles and Sustainability Guidelines, adapted for fragile and conflict-affected settings.
It ensures that:
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Funds are used intentionally for peace-positive activities (Purposeful investment)
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Projects are selected through a rigorous, peace-aligned process
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Stakeholder engagement, transparency, and independent verification are embedded
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Accountability focuses on real-world peace impact, not just financial outcomes
The Peace Bond Standard, now integrated as a sub-standard within the Peace Finance Standard, provides pre- and post-issuance criteria to ensure the investment aligns with a peace-driven mission from start to finish.
PFS for Funds — Including Equity and Blended Structures
The Peace Finance Standard for funds applies at the portfolio level and is compatible with frameworks such as the Operating Principles for Impact Management (OPIM). It supports both equity and debt investments in fragile and conflict-affected settings.
Funds applying the PFS:
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Align their investment strategy with a peace-positive theory of change
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Apply peace-enhancing mechanisms at the portfolio and enterprise level
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Track peace-relevant indicators and adapt based on community feedback
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Embed verification and safeguards to prevent harm and build trust
The Peace Equity Standard now part of the broader Peace Finance Standard, illustrates how equity investments can be structured to deliver both financial returns and peace outcomes. It remains a practical example of how the Standard is applied at the fund level, with flexibility across asset classes and a core focus on peace-positive impact.