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.
The research was conducted by Maybank Islamic Berhad, the Islamic banking arm of Maybank Group, and IslamicMarkets.com, a leading platform that provides access to expert knowledge and financial opportunities, to support their upcoming forum entitled The Global Connect Forum, with the theme of ‘Driving Sustainable Impact Through Islamic Finance.’
Around 54% of those questioned said Islamic Finance industry will place greater pressure on Halal businesses to focus more on ESG and sustainability while 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 COVID-19 pandemic had intensified the focus on ESG and sustainability in their organisations which include asset managers, banks, insurers, fintechs and consultancies.
