The Peace Investment Fund (PIF), an innovative investment vehicle targeting multinational companies with important economic impact in fragile states, was launched in January 2018 through a collaboration between PeaceNexus and the Swiss asset managers de Pury, Pictet, Turretini (PPT). The aim of the Fund is to employ financial tools to incentivize peacebuilding: by investing in companies with positive financial and peacebuilding track records, the partners of the PIF aim to raise awareness of the importance of peacebuilding as a sustainability lens. Through the Fund, PeaceNexus, PPT and BHP Brugger & Partners engage with selected portfolio companies to advise them on potential peacebuilding actions.
Business and Peace
In the past twenty years, companies adapted to the complex environments of fragile states – however, more can be gained from business engagement with peace and security issues. Evidence shows that fine-tuned risk management in conflict-affected environments leads to corporate resilience, lower costs and more value for the company and society. To promote company learning about peacebuilding, PeaceNexus developed the Peacebuilding Business Criteria (PBBC), which in turn form the basis of the PIF selection methodology. The premise of the PBBC is that companies have an interest in stability, and hence focus on behaviours that proactively promote peaceful and resilient environments.
Companies in the Peace Investment Fund
In 2016-2017, PeaceNexus commissioned an ambitious methodology to benchmark company contributions to peacebuilding. Together with Covalence SA, the Peacebuilding Business Criteria (PBBC) and mainstream ESG factors were used to assess 300 companies with the largest economic impact in fragile states. Drawing from over 4000 sources, we established a ranking of companies’ peacebuilding contributions. A backtesting of the financial performance of ranked companies indicates a strong positive correlation with peacebuilding: the top 30 peacebuilding companies outperform the MSCI benchmark by 9% in the medium-term.