Peaceful Commerce

For a civilian economy free of violence.

The Problem

The Ethical Blind Spot

Companies highlight their environmental and social commitments, but a massive blind spot remains: the indirect contribution to armed conflicts.

Today, a company can claim to be "ethical" while providing logistics, IT, or financial services to armies at war. No current standard allows for the verification of this "non-participation."

The Solution

A Verifiable Standard

Peaceful Commerce is the first certification label guaranteeing that a company does not participate in the war economy.

Our goal is to rid civilian commerce of all military influence by making visible, verifiable, and progressively "standard" the commitment of companies not to supply goods or services to armed groups.

Regulatory Definitions

Definition of an Armed Group (Prohibited Entity)

Any organization, state or non-state, structured and equipped for the use of lethal force for combat, national defense, territorial conquest, or insurgency.

Considered as Armed Groups (non-exhaustive list): Regular armed forces (army, air force, navy), national guards, militias, paramilitary groups, insurgent or terrorist groups, as well as Private Military Companies (mercenaries).

No sale of goods or services is authorized to these entities, regardless of the product's nature (lethal or non-lethal).

Definition of Civil Police (Authorized Exception)

A group whose exclusive purpose is the enforcement of common law and the protection of citizens, without a mandate for territorial defense or external force projection. To be eligible under this label, five cumulative conditions must be met:

  1. Territorial limitation: Must not have the mission to protect the territory against external aggression, nor to enter territories where the group lacks civil authority.
  2. Nature of the mandate: Exclusion of mixed or militarized mandates (e.g., gendarmerie, border guards, military anti-terrorism, extraterritorial units).
  3. Hierarchical independence: The force must be under civil authority (e.g., Ministry of Interior) and not under military command.
  4. Absence of military privileges: The police force must not grant any special status to military members and must have authority to intervene against military personnel committing common law offenses.
  5. Respect for Human Rights: Police forces tasked with enforcing laws contrary to the Universal Declaration of Human Rights are excluded.

In case of doubt, the benefit of the doubt is not granted.

The Certification Framework

Structured into four levels of requirement.

Level 1

Self-Declaration

A "Low Barrier" entry via a sworn self-declaration.

Level 2

Third-Party Audit

An audit conducted by an independent third party. The goal is to validate the reality of the commitment beyond mere words.

Level 3

Client Flowdown

The certified company commits to working only with clients who are themselves certified (or commit to becoming so within 3 months).

Depth Gauge System:

If all your clients are Level 3, you achieve Level 3.1. If all clients of your clients are also Level 3, they become 3.1 and you advance to Level 3.2, and so on.

Level 4

Infinite Flowdown

The obligation to demand unlimited downstream compliance. A product sold by a Level 4 company can never reach armed groups, regardless of the distribution chain's length.

Anti-Circumvention & Shell Company Policy

Risk-Based Auditing: To prevent companies from using shell corporations or "pass-through" distributors to bypass Level 3 requirements, we employ a dynamic auditing framework. The specific checks deployed are determined by the auditor based on the company's risk profile, jurisdiction, size, and supply chain complexity.

Corporate Groups & Subsidiaries

A parent company, its subsidiaries, and affiliates under common control are treated as a single entity. A company cannot use a subsidiary as a "buffer" to achieve certification. If a controlled subsidiary sells to the military, the entire corporate group is disqualified.

Ultimate Beneficial Owners (UBO)

Companies must declare their Ultimate Beneficial Owners. If the UBO of the certified company matches the UBO of the client company, the transaction does not count as a valid "flowdown" step. The audit looks through related companies to the first truly independent buyer.

Product Transformation

To qualify as a valid Level 3 client, the purchasing entity must significantly transform the product, integrate it, or consume it internally. If the client acts solely as a paper reseller without altering the product, certification requirements automatically pass through them to the next buyer.

Proof of Real Operations

Any company acting as a certified node in a Level 3 supply chain must prove it is a real, operating business. Criteria include having physical offices, actual employees, and a diverse client base. Shell companies with zero employees are rejected.

Captive Entities

If a client derives an overwhelming majority of its revenue from selling your products, or sells exclusively to one downstream buyer, they are flagged as a "captive entity." Auditors will treat them as an extension of the certified company rather than an independent client.

Mandatory Audit Prerequisite

Level 3 cannot be achieved via self-declaration alone. A company must first pass a Level 2 Third-Party Audit. The independent auditor is specifically tasked with sampling the client list to identify and report any obvious shell companies before Level 3 is granted.

Verified End-of-Life & Recycling

To prevent goods from entering the military supply chain via "disposal" or "scrap," companies must ensure that discarded, decommissioned, or recycled products are verifiably destroyed, rendered unusable for military applications, or processed by certified recycling partners who adhere to the same flowdown requirements.

Handling Level 4 Products

To maintain the integrity of "Infinite Flowdown," a Level 4 product can only be sold to companies certified at Level 2 or higher (Level 1 self-declarations are not sufficient). Furthermore, the Level 4 status is strictly contagious: any product, service, or system that integrates, utilizes, or otherwise touches a Level 4 product automatically inherits the Level 4 strict flowdown requirements, overriding any lower certification level of the intermediary.

Frequently Asked Questions

How is this different from existing ESG standards?

Current ESG (Environmental, Social, and Governance) frameworks focus heavily on the environment and labor rights, but completely ignore a company's indirect contribution to armed conflicts. Peaceful Commerce fills this critical gap by providing a verifiable framework for demilitarized supply chains.

Does this apply to all goods and services?

Yes. Unlike traditional regulations that merely manage or restrict dual-use items, Peaceful Commerce takes a radical approach: it strictly prohibits the sale of any goods or services (whether lethal or non-lethal, including raw materials, IT, logistics, catering, etc.) to armed groups. The focus is on the end-user, not just the product.

What is the practical difference between the certification levels regarding indirect sales?

The levels determine how far down your supply chain the restriction applies:

  • Levels 1 & 2: You cannot sell directly to the military. However, you are permitted to sell to an intermediary, such as an arms manufacturer, even if they ultimately sell to the military.
  • Level 3: You must ensure your direct clients are also certified. This means you cannot sell to an arms manufacturer (or anyone who sells directly to the military). However, the restriction stops at your direct client—you could theoretically sell to Company A, who sells to Company B, who then sells to the military.
  • Level 4: Infinite flowdown. Your product or service can never reach armed groups, regardless of how many intermediaries are involved in the distribution chain.
Does the certification apply to individuals (physical persons)?

No, the certification applies exclusively to moral persons (legal entities, organizations, and businesses), not to physical persons. For example, if you run a Level 4 certified coffee shop and an employee of an arms manufacturer visits informally as a private individual, you can absolutely serve them coffee. However, if the visit is for business purposes—such as an expensed business meeting or an official B2B catering order—you cannot provide your services to them.

How is compliance verified?

Compliance scales with the certification level. It begins with a sworn self-declaration (Level 1) and progresses to rigorous third-party documentary audits (Level 2) and mandatory supply chain flowdown requirements (Levels 3 and 4) inspired by IT security standards like SOC 2. The "Depth Gauge" in Level 3 further tracks how deeply this commitment penetrates the downstream supply chain.

Contact & Inquiries

Stefan ANTUN

Project Lead, Peaceful Commerce

stefan@peacefulcommerce.org

Chemin de la Charrue 3
1218 Le Grand-Saconnex, Switzerland