Peace Finance Overview
Understanding the foundations of peace-positive investment.
Intro
Peace Finance is an emerging approach that aligns investment with peace and stability in fragile and conflict-affected settings. It bridges finance and peace through intentionality, dual materiality, inclusive processes, and trust-building conditions — the four Peace Finance Principles.
At a glance
What it is
Using finance intentionally to reduce social and security risks and build the conditions for peace
Why it matters
Peace-positive investment not only mitigates risks—it enhances stability, inclusion, and long-term value creation.
How it works
Investments align with the four Peace Finance Principles: intentionality, dual materiality, inclusive processes, and trust-building conditions.
Peace Finance Principles
Peace intentionality & additionality
Make the peace objective explicit and create value beyond business-as-usual.
Dual materiality
Social, environmental, and conflict dynamics shape both financial and peace performance.
Inclusive processes
Engage local stakeholders meaningfully in design, decisions, and benefit-sharing.
Trust-building conditions
Design for transparency, accountability, and fair benefit-sharing.
Peace Impact Taxonomy
The Peace Impact Taxonomy defines the dimensions through which peace-positive impact can be achieved and assessed. It helps investors and practitioners connect financial performance to peace outcomes — across social, security, and institutional systems.
Safety & Security
Reduce violence, improving protective environments
Social Cohesion
Build relationships, inclusion, and collective action
Governance & Justice
Support fair rules, access to remedy, and voice
Economic Resilience
Diversify livelihoods, strengthen local value chains
Where it fits in the investment cycle
1
Sourcing
Identify peace-positive opportunities and peace partners.
2
Due diligence
Assess conflict drivers, stakeholders, and context risks.
3
Structuring
Embed safeguards, Peace Enhancing Mechanisms, incentives, and KPIs.
4
Monitoring & engagement
Track outcomes and adapt with partners.
5
Reporting
Disclose peace-related performance and lessons learned.