West Science Islamic Studies
Vol. 3 No. 01 (2025): West Science Islamic Studies

ESG (Environmental, Social, Governance) Integration in Global Islamic Finance

Judijanto, Loso (Unknown)
Fathoni, Ahmad Iqbal (Unknown)
Fauziah, Diah (Unknown)
Lasmiatun, KMT (Unknown)
Ashari, Muhammad Idris (Unknown)



Article Info

Publish Date
31 Jan 2025

Abstract

ESG integration is emerging as a game-changing influence on the world's financial systems with wide-ranging consequences for the Islamic finance industry. This research, therefore, has been designed to reach an objective that presents compatibility, challenges, and opportunities concerning ESG adoption in Islamic finance through a systematic review of 22 peer-reviewed manuscripts indexed in the Scopus database. The findings identify a good coincidence between ESG best practices and Sharia principles, as both witness vital echoes on ethical behavior, social development, and sustainability. Good harmony has been noted, though regulatory disparity, weak frameworks, and lack of awareness stand in the way. Green sukuk and international collaboration are promising pathways for the arising ESG issues. This would provide actionable insights for policymakers and financial institutions so that sustainability and ethical value creation can be encouraged at large, while positioning Islamic finance as a world leader in sustainable finance.

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Journal Info

Abbrev

wsiss

Publisher

Subject

Religion

Description

The scope of the journal Islamic Studies covers various aspects related to understanding, research, and discussion of Islam, Islamic culture, and Islamic civilization. The journal aims to be a diverse source of knowledge committed to an in-depth understanding of Islam in the contemporary world. Its ...