Investing in SDG 16: Peace, justice and strong institutions

Peaceful and inclusive societies are essential for long-term progress. Without them, it becomes harder to protect nature, tackle poverty or respond to the climate crisis.

Sustainable Development Goal 16 (SDG 16) focuses on peace, justice and strong institutions but is interlinked with almost every other SDG. Despite this, according to the United Nations, SDG 16 remains one of the most underfunded and misunderstood goals. 1

As investors committed to positive social and environmental impact, this is a critical area to engage with. Stable institutions and fair legal systems are the foundation for many of the environmental and social outcomes we actively support the delivery of. They also create the conditions for economic resilience, reduced conflict and more effective public services.

The need for investment in SDG 16

Since 1946, there have been more than 300 separate state-based conflicts. In their annual Global Peace Index (GPI), the Institute for Economics & Peace reports the number of active state-based conflicts currently stands at 59 — the most since the end of WWII. 2 The same report found that the successful resolution of conflicts is lower than at any point in the last 50 years. Alongside this, public trust in institutions continues to decline, and access to justice remains limited for billions of people.

There’s clear evidence that investing in the challenges surrounding peace and justice, and strengthening democratic governance, brings long-term benefits. Beyond the social and environmental imperative, research shows political stability significantly fosters financial development. 3 The positive impact of a peaceful and just governance is largely due to improved public services, stronger legal frameworks and reduced political risk.

The limited financial support for SDG 16 is partly due to perception. Peace and justice are often seen as the domain of governments, not private investors. The outcomes are also harder to quantify, and the path to scale can be complex. But opportunities do exist — and they’re growing.

Tribe’s approach

At Tribe, we see SDG 16 as foundational. Our investment process considers not only the risks associated with weak governance or conflict, but also the potential for positive contribution.

We assess companies and issuers across several dimensions, including political lobbying, supply chain exposure, transparency and corporate accountability. We also seek out investments that enable access to justice, strengthen institutions or support democratic systems. These span both public and private markets.

Strong institutions are directly linked to more developed financial systems, which in turn support economic growth and greater stability. From both an investment and an impact perspective, this is an area where investors can and should play a role.

Key opportunities to invest in SDG 16

The market for direct investment in peace and justice remains relatively small, but there are many clear and credible ways for capital to support SDG 16. These are investments where capital can contribute to stronger and more inclusive institutions, greater transparency, and improved access to justice.

Governance and anti-corruption tools

Transparency is a critical foundation for trust. Governance and anti-corruption technologies that improve oversight, reduce financial crime, and strengthen institutional integrity. This can include:

• Regulatory and compliance technology (“regtech”), including platforms for anti-money laundering, sanctions screening, and beneficial ownership transparency.
• Governance data providers offering tools to monitor whistleblower protections, board independence, lobbying activity, and supply chain practices.
• Integrity-linked finance, such as bonds or loans tied to anti-corruption or transparency.

Access to legal services

Fair legal systems are essential — but access remains uneven, particularly for low-income communities and small enterprises. Investment opportunities here support legal inclusion and innovation. Some examples are:

• Legal tech platforms that provide affordable contract generation, dispute resolution, and legal aid services, often through mobile-first models.
• Litigation finance, which enables legal claims in cases of environmental harm, social injustice or human rights violations.
• Public-private partnerships to modernise justice infrastructure, such as digitised court systems and performance-based prison reform models.

Civic identity and digital infrastructure

A secure, legal identity is a gateway to rights, services and protections. These investments also unlock broader benefits, such as financial inclusion and access to healthcare and education. Some examples for impact investors in this area include:

• Digital ID and e-governance platforms, often built in partnership with governments or development banks, helping deliver secure civil registration and interoperable identity.
• Social and green bonds issued by public institutions to fund ID system upgrades, with SDG 16 outcomes clearly defined and tracked.

Peace-supportive finance

Investments that enhance social resilience can reduce the risk of conflict and support long-term stability. There are innovative opportunities for investors in this space, including:

• Microfinance institutions and values-based and development banks operating in fragile or underserved communities, often using blended finance to manage risk.
• Public market strategies that combine ethical exclusions, such as arms or conflict minerals, with active tilts towards issuers showing improved governance and rule of law.
• Risk-sharing facilities, backed by development finance institutions, to encourage responsible private investment in post-conflict or high-risk regions.

Data measurement and reporting

Investors can support the infrastructure that improves visibility and accountability. Some investments in this area could include:

• Data platforms tracking institutional performance, civic space, corruption, violence and access to justice.
• Corporate reporting tools that help companies disclose their governance practices, human rights policies and political engagement — and integrate these into impact assessments.

Looking forward

At Tribe, we believe that investors have a role to play in building fairer, more inclusive systems. And as more investors understand how to engage with SDG 16, we expect to see more innovation and capital flow into this space. Data and reporting tools are improving, financial products are starting to emerge, and awareness is growing around the importance of social cohesion in a world facing rising climate and nature risks.

Investing in SDG 16 is not a standalone strategy. It is part of a broader effort to build resilience in communities, economies and the financial system as a whole. Social fragmentation and weakened institutions pose a real risk to progress. Addressing them helps reduce that risk, while also supporting positive outcomes.