Towards peace-positive investment: Bringing investors and fragile and conflict-affected states together, sustainably
This policy note aims to guide investors and regulators towards sustainable investments that contribute to peace.
Based on recent analysis by International Alert, it outlines practical steps that investors and regulators can and are taking to ensure that investments are conflict sensitive, peace positive and actioned within a stronger environmental, social and governance (ESG) framework.
The global financing gap of approximately US$100 trillion indicates that through public investment alone, there is no chance of achieving the Sustainable Development Goals by 2030. Private investment can therefore play a valuable role and affect the futures of fragile and conflict-affected states (FCAS). Sustainable finance is a vital part of the solution.
Sustainable finance possibilities have grown rapidly in recent years, driven by societal pressure and growing demand across the finance ecosystem to identify greater long-term financial returns and better alignment of investments with values, particularly relating to ESG issues.
Yet the majority of ESG investments are in advanced economies. The missed opportunities are considerable. Investors could be tapping into new markets that are resource-abundant and primed for growth, while the FCAS themselves urgently need financial investment to unleash economic development and build peace.
This policy note describes how investors and regulators can unlock the opportunities for responsible and sustainable investment in FCAS.