Fundamental and Role ESG in Islamic Finance and Business: A Literature Review and Content Analysis

Abstract

Corporations, including Islamic finance and business, encounter challenges regarding governance, environmental, and social issues. Given the significance of ESG in Islamic finance and business, it is imperative to analyze its implementation and its compatibility with Islamic principles. The study tries to carry out the detail ESG in Islamic fundamental and elaborate the contribution ESG for Islamic Finance and Business. The current research adobt hybrid approach combining bibliometric and content analysis with 513 articles from scopus databesd. By using VOSviewer and content analysis the study findings that there is compatibility between Islamic values and ESG, and Islam has always placed an emphasis on sustainability with the exception of those pertaining to usury, maysir, and gharar. The success of ESG concept bring Islamic finance and business satisfy environmental and financial outcomes. This study discovered extensive research on the implementation of Environmental, Social, and Governance (ESG) principles in Islamic finance and business. The implications of the study, Islamic financial institutions and Islamic business can direct their attention to expanding the idea of sustainable financing and product environmentally friendly.