An Evaluation of Environmental, Social and Governance (ESG) from IslamicPerspectives

Abstract

Environmental, social and governance (ESG) is increasingly becoming a crucial aspect of tolerance for firms when dealing with investments. By engaging with ESG, firms will be able to attract more investors and invest in ethical and responsible investments. Apart from contributing towards responsible investments, engagement with ESG also means firms are supporting Sustainable Development Goals (SDG) as outlined by the United Nations (UN) which help to promote sustainable development. A number of literatures has been highlighting fundamental similarities between ESG, SDG and maqasid al-Shariah. Basically, all three principles focus on addressing benefits for human beings now and in the future. Nevertheless, even though their fundamental values are the same, some specific components of practice are different.