Islamic finance is set to drive a growing focus on ESG and sustainability in the wider Halal economy, said Maybank Islamic Berhad and IslamicMarkets.com recently when releasing results of a jointly conducted survey.
Maybank Islamic Berhad is the Islamic banking arm of Maybank Group while IslamicMarkets.com is a platform that provides access to expert knowledge and financial opportunities.
The survey collected responses from 143 leading Islamic finance professionals working across sectors including banking, insurance, asset management, asset ownership, private equity, regulation and fintechs during February 2022, according to IslamicMarkets.com
- Up to 88% of Islamic finance professionals believe the growing focus on ESG and sustainability in their industry will mean the wider Halal economy will need to address ESG and sustainability more seriously.
- Around 54% of those questioned said Islamic finance industry will place greater pressure on Halal businesses to focus more on ESG and sustainability.
- 53% said Halal businesses will realise the need to address ESG and sustainability to meet finance requirements.
- However more than half (54%) of Islamic finance professionals say it is becoming increasingly clear that a company’s financial performance is linked to its ESG and sustainability record.
- The research found that 25% of Islamic Finance professionals say cooperation between Islamic Finance and Halal businesses has intensified during the pandemic.
- Around 67% of Islamic Finance professionals questioned said the pandemic had intensified the focus on ESG and sustainability in their organisations which include asset managers, banks, insurers, fintechs and consultancies.