Al-Muhtarifin: Islamic Banking and Islamic Economic Journal
Vol 3, No 2 (2024): Jun 2024

Application of Environmental, Social, and Governance (ESG) Method in Financial Management

Fadli, Zahri (Unknown)



Article Info

Publish Date
30 Jun 2024

Abstract

This study investigates how the Environmental, Social, and Governance (ESG) approach can be used in financial management. Investors can avoid companies that have regulatory, reputational and social risks by considering environmental, social and governance considerations. Empirical evidence shows that companies with strong ESG policies typically demonstrate efficacy, ingenuity, and better brand image—all of which contribute to improved financial results and investor appeal. In this research, descriptive analysis is combined with literature study methodology. Transparent ESG reporting enables companies to increase capital availability, meet changing regulatory requirements, foster investor confidence, and lower reputational risk. To achieve this, effective ESG reporting must be implemented through integration with annual reports, acceptance of reporting standards, stakeholder engagement and independent verification.

Copyrights © 2024






Journal Info

Abbrev

ALMUHTARIFIN

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Muhtarifin: Islamic Banking and Islamic Economic Journal is published by Islamic Banking Department, Faculty of Islamic Religion, University of Muhammadiyah Sumatera Utara . Published twice a year (January and July). Jurnal Al-Muhtarifin is a scientific journal that contains the results of ...