Developing Islamic sustainable and responsible investment criteria: an overview

Abstract

Purpose The purpose of this study is to explore the necessity for developing Islamic sustainable and responsible investment (i-SRI) criteria based on environmental, social and governance issues. Design/methodology/approach To address the above objective, this study adopted a qualitative method via content document analysis and interviews with experts. Findings Based on the analysis, this study discovered five primary aspects that lead to the necessity for developing i-SRI criteria. First, Malaysia has yet to develop i-SRI criteria. Second, the absence of i-SRI criteria will eventually lead to Shariah issues. Third, any Islamic financial instrument is bound to encounter numerous issues and challenges, thereby making it difficult to be marketed globally if it does not have a proper and standardized framework. Fourth, the establishment of i-SRI criteria can serve as a key reference point for the players in the industry, including investors, policymakers and other parties. Finally, the development of i-SRI criteria can play a vital role in enhancing the current Islamic capital market products offering in Malaysia. Practical implications There are several implications identified in this study. First, continuous research on the i-SRI criteria can offer numerous benefits to the regulatory bodies and policymakers who can use the findings in their decision-making process. Second, in terms of investors, the results can help them to make better investment choices by referring to the i-SRI criteria. Third, this study will be valuable to the academicians in terms of opportunity to explore a new research area, i.e. the i-SRI criteria, besides adding to the extant literature on this topic which is still scant currently. Originality/value This study discovered five primary aspects that lead to the necessity for developing i-SRI criteria.

Integrating environmental, social and governance (ESG) principles with Maqasid al-Shariah: a blueprint for sustainable takaful operations

“…The existing literature, principles and concepts of ESG principles and Maqasid al-Shariah within Takaful operations are analysed. Through this process, pre-determined themes or measurements based on established theories and frameworks suggested by scholars such as Haji Wahab and Mohamed Naim (2023), Abdullah et al (2023) and others (Agustin et al, 2023;Dirie et al, 2023;Harahap et al, 2023; IMEFM 17,3 Marwan et al, 2020;Shahid et al, 2023) are identified. These themes or measurements serve as a foundation for the conceptual framework.…”