ISLAMIC–ESG SYNERGIES AND PERFORMANCE

The interest in the sustainability and ethical aspects of doing businesses has stimulated much policy and scholarly discussion. The growing awareness of “social responsibility” among investors and corporations, backed by the launch of several principles in 2006 to promote responsible investing by the United Nations and the adoption of its 17 Sustainable Development Goals (SDGs) in 2015, has made environmental, social, and governance (ESG) concerns key ingredients in their investment decisions and business activities. This positive progress towards a sustainable future notwithstanding, there remains a question among various stakeholders whether there is any financial benefit or penalty in being “socially responsible” or “morally responsible.”