ABSTRACT
Environmental, social, and governance (ESG) have gained popularity in the banking and finance industry since 2000, and Islamic finance is not far behind with ESG adoption and practices. Indeed, it can be considered more advanced, as it has been long practised and adopted by the Muslim community. Islam had beautifully laid rules for how a transaction should be conducted without harming the environment and society. Mankind, as a trustee to God, should share the wealth equitably by way of zakah, waqf, sadaqah, and Qard al-Hassan through wealth redistribution. These four instruments can be used to advance economic growth, environmental protection, and societal needs. Each stakeholder, such as the government and regulatory bodies, serves a crucial function to continuously contribute to the development of sustainability products and regulations to ensure the inclusivity of all. Islamic finance holds a promising future for more innovation in sustainable products that can benefit the environment and mankind through ESG integration.
