Finance for Peace is looking for individuals to serve as members of the Peace Finance Standards Committee, which will be one of the key governance entities of the Finance for Peace Foundation. Members serve on the Committee on a voluntary basis.
The Committee is tasked with the iterative development of the Peace Finance Standard, which consists of the Peace Bond Standard and the Peace Equity Standard. The Committee will also contribute with feedback to the Peace Finance Impact Framework and related Guidance Notes, which provide the bedrock principles, impact taxonomy and exclusionary criteria that underpin the Peace Finance Standard.
The Committee will consist of up to ten (10) members, including an equal and gender-balanced mix of representatives from the finance sector (including experts in bond and equity investment markets, as well as DFI representatives) and the fields of development, peacebuilding, and academia.
It is envisaged that Committee members will meet four times per year: once in person, in a location to be determined, and three times virtually.
Terms of Reference – Peace Finance Standards Committee
These Terms of Reference are for one of the key governance entities of the Finance for Peace Foundation.
The Peace Finance Standards Committee is a non-executive advisory body on the development of Peace Finance Standard (PFS) and a Peace Finance Impact Framework (PFIF) – the principal normative instruments for the nascent peace finance market.
A. About the Initiative
The Finance for Peace initiative is dedicated to establishing market conditions that enable global financial capital to contribute to peace. This will be achieved by creating norms, standards, conducting research, building knowledge, advocating for change, and forging partnerships to create new incentive systems that promote investment approaches aimed at fostering peace.
The Finance for Peace initiative has been established on the premise that the world’s vast financial resources can be utilised more effectively to prevent conflicts, support post-conflict reconstruction, and promote long-term peace whilst concurrently adding value to private sector investors in particular.
Peace and stability are critical requirements for long-term economic growth and prosperity. Today, almost 75% of the world’s population living in extreme poverty reside in the world’s fragile and conflict-affected countries. Many of these countries need greater investment and inclusive growth to meet basic needs such as energy, education, health, water and sanitation, infrastructure, and communications, which are stunted by real or perceived risks related to governance, instability, or conflict. Approaches to development and investment that fail to address the root causes of conflict, violence, and instability or worsen factors such as inequality, exclusion, and discrimination will not redress these fundamental risks or risk perceptions. Finance for Peace seeks to address these fundamental problems and market failures.
Through a multi-layered and multi-stakeholder approach, the initiative intends to create incentive structures and an enabling environment for a new category of financial investment that demonstrably builds peace. Additionally, through policy advocacy, networking and convening Finance for Peace will seek to leverage the energy, wisdom and resources of supporting organisations and individuals to create a collective impact for peace. It will create these opportunities for peace in different asset classes, whether in fixed income, equities or alternative investments such as private equity, impact investing or in concessional public investment.
Finance for Peace exists to be a global public good and have a strong orientation to the finance sector in the belief that positive change will be driven by the powerful incentives of the finance sector. It will seek to bridge the different forms of knowledge between finance, peacebuilding and government.
Objectives of Finance for Peace initiative are to:
- Catalyse the development of a Peace Bond and Equity Market worth USD 1 trillion, which adheres to Peace Bond Standards developed by Finance for Peace Initiative. This market will generate tangible peace benefits for communities while also providing investors with material value.
- Propagate the ‘Finance for Peace’ label in financial markets so it is a widely known, highly trusted and used market label, similar to ‘Green’ or ‘Social’ labels.
- Develop an eco-system of Peace Partners certified and willing to support the scale-up and implementation of Peace Finance projects as well as a widely available knowledge base and toolbox of Peace Enhancing Mechanisms (PEMs) available to investors and Peace Partners to improve the peace impact of their projects.
B. Responsibilities and Functions
A market for peace finance requires a supporting infrastructure of principles, standards, and guidance for investors to benchmark the peace impact of their investments to be effective and to mitigate the risk and prevent “peace-washing,” which is the Committee’s key purpose.
The Committee is ultimately accountable for the iterative development of the Peace Finance Standard, which consists of the Peace Bond Standard and the Peace Equity Standard, with other standard frameworks to be developed based on the needs as determined by the Committee. The Committee will also contribute feedback into the Peace Finance Impact Framework which provides the bedrock principles, impact taxonomy and exclusionary criteria that underpin the Peace Finance Standard. The Committee works closely with the Finance for Peace Secretariat and the Head of Standards and Market Intelligence to iterate and improve the Peace Finance Standard and Peace Finance Impact Framework based on market intelligence and stakeholder feedback.
The Committee’s primary functions and responsibilities are to:
- Iterate and improve the Peace Finance Standard including the Peace Bonds Standard and Peace Equity Standard based on key stakeholder feedback.
- Iterate and improve the Guidance Notes on the Peace Finance Impact Framework, and the Peace Finance Impact Framework itself, which underpins the Peace Finance Standard based on key stakeholder feedback.
- Provide strategic input into the certification process for peace aligned investments whether in bonds or equity, and advise on the role of the Finance for Peace alongside other key service providers and stakeholders on certification.
- Assist the Finance for Peace Global Steering Group in promoting the adoption of Peace Finance Standard by financial institutions, investors, and other stakeholders.
- Monitor market trends in market alignment to the Peace Finance Standard, identify gaps and areas for improvement, and propose solutions.
- Monitor evidence of peace impact from peace aligned investments seeking to balance rigor and useability of the Peace Finance Standard and Peace Finance Impact Framework.
- Where and when relevant, establish and oversee thematic working groups and sub-committees on specialised topics or themes.
- Perform other duties as required to assist the Governing Board and the Secretariat of the Foundation (upon their formal establishment) in the implementation of their duties.
C. Membership Criteria
Members of the Committee shall be eminent persons and institutional representatives who subscribe to its mission and actively support its objectives. The Committee shall consist of up to ten (10) members, including an equal and gender balanced mix of representatives from the finance sector (including experts in bond and equity investment markets, as well as DFI representatives) and the fields of development, peacebuilding, and academia.
Except for the initial Chair of the Committee, who is designated by the Finance for Peace initiative’s temporary Steering Committee, the Committee designates its Chair and organises itself and its procedures of business.
The Committee can freely decide on the admission and refusal of members. The Committee shall decide on the exclusion of a member on the basis of disregard of its defined mission. Members shall serve for a three-year term or such other term as decided by the Governing Board, renewable for a consecutive term of up to three years.
A member of the Committee may resign at any time, with a one-month notice, by sending a written communication to the Chair. The Chair may resign by informing the other Committee members. The Committee shall then appoint a new Chair.
A Committee member, including the Chair, may be revoked for just cause, notably if such member has violated their obligations towards the initiative or if such member is not in a position to exercise correctly their function. A two-thirds (2/3) majority vote of all Committee members is required to decide on the exclusion of a Committee member.
Relevant Expertise and Experience
Members of the Peace Finance Standards Committee must have expertise and experience in financial sector governance, norm and standard setting and verification, sustainable and impact investing, and the financial and sustainable investment industries.
Committee members should also have a strong understanding of peacebuilding theory and practice. They should be able to provide insights into how financial practices can support or hinder peacebuilding efforts.
- The Committee will aim to have a diverse membership, reflecting a range of gender, age, nationality, and professional background.
- Members of the Peace Finance Standards Committee must be independent of any conflicts of interest and shall not have any personal, professional, or financial interests that may influence their decisions.
- Members of the Peace Finance Standards Committee must be committed to the objectives and goals of the Finance for Peace Foundation, and be willing to devote adequate time to fulfil their duties and responsibilities.
- Geographic Representation
- The Committee will aim to have a balanced representation of members from different regions of the world, including representatives working at the international and local field level.
- Project-oriented and purpose-driven
- The Committee will be principally responsible for maintaining and improving the use, uptake and efficacy of the Peace Finance Impact Framework and the Peace Finance Standard to enable scaled up peace promotional investment.
D. Reporting and Feedback
The Peace Finance Standards Committee is non-executive and advisory, and shall report to the Governing Board of the Finance for Peace Foundation (upon its establishment) and provide regular feedback on its activities and achievements. The Committee shall meet at least once a year, and more frequently as required, to fulfil its responsibilities and functions.
The Finance for Peace Head of Standards and Market Intelligence will oversee the management and curation of the Peace Finance Standards Committee, shaping its membership, developing the agenda of the meetings and producing key documents for review and iteration.
The tasks listed above are also to be performed in an interactive and iterative process in collaboration with the Finance for Peace Secretariat.
The Standards Committee shall consist of a Chair and a Vice-Chair, both of whom are elected by the Committee from among its members.
The Chair and Vice-Chair
The Chair shall be responsible for the following functions:
- Representing and chairing the Committee, along with their respective meetings;
- Promoting the activities of the Committee in close cooperation with the Finance for Peace Head of Standards and Market Intelligence, and the Executive Director of the Foundation; and
- Alongside the Chair of the Industry Association Global Steering Group and the Chair of the Foundation’s Governing Board, appoint the Executive Director of Finance for Peace.
The Vice-Chair’s functions are those delegated to them by the Chair. In the absence of the Chair, the Vice-Chair delegated by the Chair shall take their place.
The Committee – either during its tenure in supporting the start-up Finance for Peace initiative or in due course as an entity of the Finance for Peace Foundation – shall not independently enter into any legal, financial, political or other commitment.
The Committee will initially be created to support the start-up Finance for Peace initiative of Interpeace, with the intention that the Committee will later be incorporated statutorily into the Finance for Peace Foundation upon the latter’s formal establishment.
F. Remuneration of the Committee members
Members of the Committee shall serve on a voluntary/honorary basis and shall not receive remuneration for their participation in the work of the Committee. The regular exercise of their functions includes attendance at Committee and subsidiary body meetings, as well as preparatory and/or follow-up work associated with such attendance, in addition to support for fundraising and advocacy activities.
Committee members may be requested by the Governing Board and/or the Executive Director to contribute their expertise to the Foundation beyond the normal exercise of their functions, through ad hoc assignments that are subject to the approval of the Chair of the Committee and remuneration by the Foundation.
How to apply
Candidates with relevant qualifications and experience are invited to email [email protected] by August 30, 2023, sharing a CV that proves relevant experience, and a motivation letter. Please refer to the Terms of Reference below for additional details on the responsibilities and functioning of the Peace Finance Standards Committee.