Main Article Content
The subject of ethics has been widely debated in Islamic finance reflecting the importance of ethical considerations in environmental management. In recent decades, rapid growth in population, urbanisation, energy consumption and per capita income have increased the demand for natural resources causing substantial damage to the ecosystem. Sustainable development is concerned with human capabilities to manage natural resources so as to protect the environment and ensure future survival. Project funding by banks could strengthen guidelines for protecting the environment through investment in green or ethical projects. Ethical investments reduce the risk of environmental degradation by selecting green projects, including green technologies, suitable for the indigenous environment. Compliance with Islamic principles restricts Islamic financial institutions from financing enterprises that cause negative externalities. To this end, ethical investments should be integrated into the banking credit decision criteria to ensure that environmental protection is given priority in business decision-making. The paper maintains that investment in green projects represents new opportunities for Islamic banks to play an important role in sustaining development and responding to the challenges facing people worldwide.
Daly, Herman. “Ecological Economics and Sustainable Development.” Selected Essays of Herman Daly. 2007. https://econpapers.repec.org/bookchap/elgeebook/12606.htm.
_______. Economics for a Full World, https://pandopopulus.com/wp-content/uploads/2016/07/Herman-Daly-ECONOMICS-FOR-A-FULL-WORLD.pdf.
_______. “Toward some Operational Principles of Sustainable Development, Ecological Economics.” Ecological Economics 2, no.1 (1990): 1–6.
Financing Solutions for Sustainable Development. UNDP. http://www.undp.org/content/sdfinance/en/home/solutions/greenbonds.html.
Global 2016 Sukuk Market: A Record Year for Corporate Issuance. Bank Negara Malaysia, 2017. http://www.mifc.com/index.php?rp=sukuk_report_270317.pdf.
Green Bonds. International Finance Corporation (IFC). https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/news/perspectives/perspectives-i1c2.
Green Economy. United Nations Environmental Programme (UNEP), 2010. https://wedocs.unep.org/bitstream/handle/20.500.11822/8659/-%20Green%20economy_%20what%20do%20we%20mean%20by%20green%20economy_%20-2012Main%20briefing%202012--Final.pdf.
Hamed, Habib. Contribution of Islamic Finance to 2030 Agenda for Sustainable Development. United Nations, 2017. http://www.un.org/esa/ffd/high-level-conference-on-ffd-and-2030-agenda/wp-content/uploads/sites/4/2017/11/Background-Paper_Islamic-Finance.pdf.
The IMF and Islamic Finance, International Monetary Fund (IMF), 2017. https://www.imf.org/external/themes/islamicfinance/index.htm
Inclusive Green Growth: The Path to Sustainable Development.Washington: The World Bank, 2012.
“Islam and the Environment.” The Times of India. https://timesofindia.indiatimes.com/Islam-and-environment/articleshow/7053540.cms
Islamic Finance: A Catalyst for Shared Prosperity. Washington: World Bank, 2016.
Islamic Finance Outlook. S&P Global Ratings, 2018.spglobal.com/Ratings State of the Global Islamic Economy Report 2016/2017.
Islamic Green Finance: Development, Ecosystem and Prospects. World Bank Group, 2019. http://documents.worldbank.org/curated/en/591721554824346344/pdf/Islamic-Green-Finance-Development-Ecosystem-and-Prospects.pdf.
Nomani, Farhad and Ali Rahnema. Islamic Economic Systems. Kuala Lumpur: S. Abdul Majeed & Co., 1995.
Meadows, Donella H. et al. The Limits to Growth. New York: Universe Books, 1972.
Mobilizing Islamic Finance for Infrastructure Public-Private Partnership. Washington: World Bank, 2017.
Our Common Future. The United Nations, 1987. https://www.kdp.org/initiatives/pdf/BrundtlandReport.pdf.
“Global green bond issuance hit record $155.5 billion in 2017-data”. Reuters, 2018. https://www.reuters.com/article/greenbonds-issuance/global-green-bond-issuance-hitrecord-155-5-billion-in-2017-data-idUSL8N1P5335.
Al-Roubaie, Amer. “Al-Attas’s Concept of Happiness: A Reflection on the Contemporary Meaning of Development.” In Knowledge, Language, Thought and the Civilization of Islam, ed. Wan Mohd Daud and Muhammad Zainiy Uthman. Kuala Lumpur: UTM, 2010.
The State of the Global Islamic Economy Report 2016/17, THOMSON REUTERS, 2016. https://ceif.iba.edu.pk/pdf Thomson Reuters State of the Global Islamic Economy Report 201617.pdf.
“Sustainable Development Goal.” Wikipedia. https://en.wikipedia.org/wiki/Sustainable_Development_Goals.
“What are Green Bonds and How Green is Green”. Bloomberg Businessweek, 2019. https://www.bloomberg.com/news/articles/2019-03-24/what-are-green-bonds-and-how-green-is-green-quicktakea.
Living Planet Report 2018. Lausanne: World Wildlife Fund (WWF), 2018.