Islamic ESG – a conceptual framework.

Abstract

The emergence of Environmental, Social, and Governance (ESG) frameworks as a dominant paradigm in global corporate sustainability discourse has prompted renewed interest in contextualizing such frameworks within diverse normative systems, including Islamic teaching and legal traditions. This paper critically explores the conceptual foundations, operational dimensions, and normative challenges involved in the articulation of an Islamic ESG framework, starting from exploring the similarities and differences of conventional ESG applications with Islamic values. Drawing from the principles of Maqasid al-Sharia (objectives of Islamic law) and some fundamental principles in Islamic finance and business transactions, the study examines how Islamic epistemology can offer a distinctive yet complementary lens to conventional ESG models.