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Peace Finance Standard

As a key pillar of the Peace Finance Impact Framework (PFIF) [link to 1.1.1. PFIF explained], the Peace Finance Standard (PFS) is the gateway to making a meaningful difference through investment. Our goal? To guide bond and equity issuers in creating and certifying investments that not only yield financial returns but also foster peace.

The PFIF and PFS are not just products of expert design; they are the culmination of extensive collaboration and valuable insights from a diverse group of stakeholders. This inclusive approach ensures that our frameworks are practical, impactful and widely applicable.

Who contributed? A look at our diverse partners

Our journey in developing the PFIF and PFS has been enriched by contributions from a wide range of partners, each bringing unique perspectives and expertise:

Government donors and multilateral organisations: Their global outlook and commitment to sustainable development have been instrumental.

Development finance institutions and multilateral development banks: Their expertise in funding and structuring large-scale projects has guided our financial models.

Private asset managers and banks: Their insights into the dynamics of private capital markets have shaped our approach to making peace finance appealing to private investors.

Enterprises in fragile and emerging markets: Their on-the-ground experiences have provided us with a real-world perspective on the challenges and opportunities in these markets.

Norm-setting organisations in finance: Their standards and guidelines have helped us align with global best practices.

Second-party opinion providers: Their critical assessments ensure our frameworks are robust and credible.

Organisations in development and peacebuilding: Their deep understanding of the complexities of peacebuilding has been invaluable.

Civil society and communities: Their voices ensure that our efforts remain grounded in the needs and aspirations of those most affected by our work.

This collaborative effort reflects our commitment to creating frameworks that are not only innovative but also deeply rooted in the realities of diverse stakeholders. By bringing together government bodies, financial institutions, private-sector players, and communities, we are paving the way for investments that truly make a difference.

Introducing innovative investment instruments: peace bonds and peace equity

At the heart of the PFS are two groundbreaking financial tools designed for impact investing:

Peace Bonds: Drawing inspiration from the International Capital Market Association’s ICMA Social Bond Principles and Sustainability Guidelines, Peace Bonds encompass:

  • Purposeful investment: Ensuring funds are used for peace-positive projects.
  • Rigorous selection: A thorough process to choose projects that truly make a difference.
  • Transparent management: Commonly agreed-upon impact indicators and independent external verification.
  • Accountable reporting: Our approach to accountable reporting focuses on the real-world impact of the net proceeds from the Peace Bond. It is crucial to validate how these funds have tangibly affected the lives of the targeted populations or groups.

The Peace Bond Standard, divided into pre- and post-issuance criteria, ensures the investment aligns with our peace-driven mission from start to finish.

Peace Equity: These investments are shaped by the nine Impact Principles and adhere to the five stages of the Operating Principles for Impact Management.

The Peace Equity Standard is ensuring that equity investments are not only profitable, but also supportive of peace.

© Finance for Peace 2023