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Journal : Journal of Islamic Economic Laws

The Importance of Implementing Environment, Social and Government (ESG) and Maqasid Sharia-Based Islamic Finance in Islamic Bank Fitriyana Agustin; Ridan Muhtadi; Sakinah Sahal
Journal of Islamic Economic Laws Vol 6, No 2: July 2023
Publisher : Muhammadiyah University Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23917/jisel.v6i2.21214

Abstract

Environment, Social Governance (ESG) is a trending topic worldwide that is gaining a lot of traction because of its focus on social and environmental impact, and its relationship to improving financial performance. Likewise, Islamic Finance, being Shariah-compliant, is also another concept that is growing globally. These two concepts share many common values and similarities as they address challenges of social development. However, there are several obstacles and challenges in terms of integrating ESG in financial institutions, because this is a new concept. Financial institutions implement sharia principles with the aim of achieving Maqasid Sharia (i.e., protecting life, religion, mind, lineage and property). Even in the concept of ESG investment, screening of certain business sectors is required. The aim of this research is to optimize the potential to attract more interest from public companies as ESG and Maqasid Sharia strive to fulfill their social goals without compromising their side business operations. The research method uses a type of Systematic Review with a mixed method of literature search which is carried out both in qualitative and quantitative research. It aims to improve the integrity of research findings from 20 journal articles. This research found that Many Islamic banks have started promoting sustainability through their financing and initiatives many years ago which put them ahead in terms of ESG. There are still many obstacles that need to be overcome to get the best results from the integration of ESG and Islamic Finance as well as offering insights into Islamic finance models such as ESG investment from an Islamic perspective, especially with regard to the concepts of Maqasid Sharia and maslaha mursala, so that ESG and Maqasid Sharia can be applied in all institutions, especially Islamic banking.
Co-Authors ABD Aziz, ABD Abd Rohman Al Hadifi Abd. Wahab Abdul Ghoni Ach. Fauzi Lutfi Afandi, Muhammad Zainur Rahman Agustin, Fitriyana AL QORNI, FARID ILHAM Ali Murtadho Alifah Alifah Anindya Yusuf Wirmanda Anis Eliyana Arifin, Moh. Arifin, Nur Rachmat AUNUR ROFIQ Dhoqi Dofiri Dwi Ariady Kusuma Ervicaninda Herry Fahmi as-Sulthoni Fahrurrozi Fahrurrozi , Fahrurrozi Fahrurrozi Fahrurrozi Fanani Mafatikul Ihsan Fanani Mafatikul Ihsan Faridatun Nila Faridatun Nila Faridatun Nila Faridatur Rosyidah Firdaus, Nabila Yuli Firman Ardiansyah Firman Ardiansyah Fitriyana Agustin Fitriyana Agustin Fitriyani, Novita Ayu Fudholi , Moh Gancar Candra Premananto Hannan, Abd. Hidayat , Moh. Nurul Ihsan, Fanani Mafatikul Imron Mawardi Inayah Swasti Ratih Istianah Istianah Kamali Kamali Kamali kamali kamali, kamali Karimah Karimah Linda Sari M Mohsi Mansur Mansur Mansur Mansur Maulia, Shirenda Rizka Mawarni, Iga Mi’raj, Denizar Abdurrahman Mi’raj, Denizar Abdurrahman Moch Qosyim Moh Arifin Moh Fudholi Moh Safik Moh Subhan Moh. Arifin Moh. Fudholi Moh. Fudholi Mohammad Adi Mohammad Adi Mohammad Zainal Muharrom, M. Syahrul Mumuh Muhammad Munawaroh, Hikmatul Muslikhin Muslikhin Muzakki Muzakki Nafiah, Ilfiatun Nila, Faridatun Nova Haryanto Nur Rachmat Arifin Nur Rachmat Arifin Nur Rachmat Arifin Nur Rachmat Arifin Nuri Herachwati Permana, Pramudia Yuly Eka Pramudia Yuli Eka Permana Pramudia Yuly Eka Permana Putri Cahya Rosyadah Qosyim, Moch R Wahyu Agung Utama R Wahyu Agung Utama R. Wahyu Agung Utama R. Wahyu Agung Utama R. Wahyu Agung Utama Rahman, Ahmad Taufiqur Ratih, Inayah Swasti RB Dandy Raga Utama Ririn Tri Ratnasari Risa Sari Pertiwi Risma Ayu Kinanti Rizatul Yunus, Muhammad Rizky Winanda Rofiki, Akhmad Rosyadah, Putri Cahya Ryval Ababil Safik, Moh Safik, Mohamad Sahal, Sakinah Saini Sakinah Sahal Shofa, Sirojul Arifin Siti Fatimah Siti Masfufa Siyah Siyah Sri Herianingrum Subaida Subaida Suyudi, Moh Syafiqoh, Anilna TAMIMAH TAMIMAH Tamimah, Tamimah Tate Agape Bawana Tsaniyatul Haliyah Utama, R Wahyu Agung Utama, R. Wahyu Agung Wahyuni ‎, Nanik Wisnu Bayu Aji Z.A, Khayrus Sabiqin Zaenol Hasan Zainurrafiqi Zainurrafiqi Zavirani Fitrandasari