Glossary

  • AAAQ

    Availability, accessibility, acceptability, and quality

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  • AAAQ approach

    The Availability, Accessibility, Acceptability, and Quality (AAAQ) framework aims to identify and overcome barriers to the realisation of social, economic, and cultural rights. Availability ensures…

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  • Additionality

    In the context of Peace Finance, additionality refers to the unique, positive contributions that an investment makes to peacebuilding, which would not have occurred in…

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  • Blended finance

    Blended finance refers to the strategic use of public or philanthropic capital to attract private sector investment into projects that deliver both financial returns and…

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  • Conflict dynamics

    Conflict dynamics refer to the interaction between the conflict context – comprising political, economic, and socio-cultural factors – the actors involved, and the underlying causes…

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  • Conflict Sensitivity

    Conflict sensitivity refers to practices that enable organizations to understand how their interventions interact with conflict in a particular context and to mitigate unintended negative effects, aiming to influence conflict positively wherever possible.

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  • CSR

    Corporate social responsibility

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  • DFI

    Development finance institution

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  • DIB

    Development Impact Bond 

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  • Direct peace contribution

    Direct positive contributions to peace occur when the business outputs of an investment directly address a key conflict driver or strengthen the capacity of a…

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  • DNH

    Do No Harm

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  • Do No Harm (DNH)

    Do No Harm (DNH) is both a principle and a framework used to ensure that external actors, especially in fragile and conflict-affected places, consider and mitigate the potentially negative effects of their assistance.

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  • Do-No-Harm contribution

    Activities that contribute to one or more peace (sub)objectives while ensuring no harm is done to other (sub)objectives or to the minimum social and environmental…

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  • Do-No-Harm principle

    The Do-No-Harm (DNH) principle is both a guiding concept and a framework, long utilised in the humanitarian, development, and peacebuilding sectors. It ensures that external…

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  • Dual materiality

    Dual materiality refers to the concept that a company’s actions affect both financial performance and external factors like the environment and society, and vice versa.…

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  • EDFI

    European Development Finance Institutions

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  • EMIA

    Emerging Markets Investor Alliance

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  • ESG

    Environmental, social, and governance

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  • EU

    European Union

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  • FCS

    Fragile and conflict-affected settings

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  • FDI

    Foreign direct investment

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  • Foreign direct investment

    Foreign direct investment (FDI) refers to investments made by a company or individual in one country into business interests located in another country. In fragile…

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  • Fragility

    A fragile context or state refers to an environment lacking resilience, where institutions and social structures are weak, making it difficult to manage conflicts non-violently.…

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  • Frontier market

    A frontier market is a type of developing economy with smaller, less accessible capital markets compared to emerging markets. Investments in frontier markets carry higher…

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  • GSSSB

    Green, social, sustainability and sustainability-linked bonds

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  • ICMA

    International Capital Market Association

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  • Indirect peace contribution

    Indirect positive contributions to peace arise through process-driven approaches and outputs, where the impacts on peace are secondary to the business’s direct outputs but still…

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  • KPI

    Key performance indicator 

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  • Market premium

    Market premiums refer to the additional return or compensation investors expect for taking on higher risks, such as investing in volatile or conflict-affected regions. In…

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  • MDB

    Multilateral development bank

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  • MEL

    Monitoring, Evaluation, and Learning 

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  • Negative Peace

    Negative peace is commonly understood as the absence of direct physical violence or fear of physical violence.

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  • Net present value

    Net present value (NPV) is a financial metric that calculates the value of a project or investment by comparing the present value of expected future…

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  • NGO

    Non-governmental organisation

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  • NPV

    Net present value

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  • ODA

    Official development assistance

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  • OECD DAC

    Organisation for Economic Co-operation and Development’s Development Assistance Committee

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  • Official development assistance

    Official development assistance (ODA) refers to government aid designed to promote economic development and welfare in developing countries. It includes grants and concessional loans aimed…

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  • OPIM

    Operating Principles for Impact Management

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  • OPIM

    Operating Principles for Impact Management

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  • Peace Bond

    A Peace Bond is a financial instrument designed to raise funds for projects that intentionally promote peace and stability in fragile or conflict-affected areas. Similar…

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  • Peace Bonds

    Peace Bonds are financial instruments designed to generate positive peace impacts while providing financial returns. They are aligned with the Peace Finance Standard and are subject to rigorous issuance and verification processes.

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  • Peace Equity

    Peace Equity refers to equity investments that are structured and managed to contribute to peacebuilding efforts. Like Peace Bonds, they follow the Peace Finance Standard to ensure alignment with peace objectives.

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  • Peace Finance

    Peace Finance refers to investments that intentionally enhance and create the conditions for peace in developing, fragile and conflict-affected contexts. By reducing risks for both…

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  • Peace Finance Impact Framework (PFIF)

    The Peace Finance Impact Framework (PFIF) is an investment framework designed to enable impact investors to support peace. It helps both public and private investors to plan, report, and realize peace impacts while simultaneously reducing investment risks for themselves and for communities in investment areas.

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  • Peace Finance Standard (PFS)

    The Peace Finance Standard (PFS) is a robust high-quality standard that outlines the pre-and post-issuance requirements that Peace Bond or Peace Equity issuers must meet. It governs the structuring, management, and verification of peace impact investments.

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  • Peace Partner

    Local, national, or international entity with the relevant skills, networks, and knowledge to support peace-positive investments within a specific context. These partners often include local…

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  • Peace Partners

    Peace Partners are local, national, or international organizations with the capacities, skills, networks, and knowledge relevant to the local investment context. They play a crucial role in assisting investors to align, plan, and scale up their peace impacts.

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  • Peace responsiveness

    Peace responsiveness builds on conflict sensitivity. It refers to the ability of actors operating in fragile and conflict-affected contexts to be conflict-sensitive and to deliberately…

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  • Peace Taxonomy

    The Peace Taxonomy is a classification system that helps investors identify and categorise peace-positive investments. It outlines criteria for assessing the peace impacts of projects…

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  • Peace-enhancing mechanism

    Actions embedded within financial structures and investment strategies that align with the Peace Finance Impact Framework. These mechanisms are implemented by Peace Partners – partners…

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  • Peace-enhancing Mechanisms

    Peace-enhancing mechanisms are peace actions embedded in financial structures and investment approaches that seek alignment with the PFIF. They are implemented by Peace Partners and may cover a broad array of actions specific to a given investment context.

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  • Peace-positive

    The term ‘peace-positive’ is commonly used in development and peace-related literature to describe actions that positively influence peace dynamics, contributing to reducing violence (negative peace)…

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  • Peacebuilding

    Peacebuilding refers to a set of actions aimed at reducing the risk of conflict reoccurrence by enhancing a nation’s ability to manage conflict at all…

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  • PEM

    Peace-enhancing mechanism

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  • PFIF

    Peace Finance Impact Framework

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  • PFS

    Peace Finance Standard

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  • Political peace

    Political peace interventions focus on political or formal solutions to violent conflicts. These interventions are often supported by legal frameworks, such as peace agreements or…

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  • Positive Peace

    Positive peace occurs when an ongoing process of transformation forms attitudes, institutions, and norms that enable societies to resolve grievances in non-violent ways that are perceived as just.

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  • PRI

    Principles for Responsible Investment

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  • RCT

    Randomised controlled trial

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  • Resilience

    Resilience refers to the ability to absorb stress and respond to crises in ways that minimise harm, resolve conflicts non-violently, and recover effectively from crises.…

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  • Return on investment

    Return on investment (ROI) measures the profitability of an investment by comparing the gain or loss generated relative to the initial cost. In Peace Finance,…

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  • RIAA

    Responsible Investment Association Australasia

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  • ROI

    Return on investment

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  • SDGs

    UN Sustainable Development Goals

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  • SGBV

    Sexual and gender-based violence

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  • Social cohesion

    Social cohesion refers to the extent to which members of a society coexist peacefully, marked by mutual tolerance, respect, and strong, functional relationships. These relationships…

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  • Social peace

    Social peace refers to the presence of social cohesion and trust between the state and its people, between different social and identity groups (such as…

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  • THK

    Tri Hita Karana Working Group

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  • UN

    United Nations

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  • UN Sustainable Development Goals

    The UN Sustainable Development Goals (SDGs) are a collection of 17 interlinked global goals designed to be a blueprint to achieve a better and more…

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