INTEGRATION OF ESG PRINCIPLES IN RISK ASSESMENT OF ISLAMIC FINANCIAL PRODUCTS: A MAQASID SHARIAH-BASED APPROACH
DOI:
https://doi.org/10.56127/jekma.v4i2.2079Keywords:
ESG, Maqashid Shariah, Risk Assessment, Islamic Finance, SustainabilityAbstract
This study aims to develop a risk assessment framework for Islamic financial products by integrating Environmental, Social, and Governance (ESG) principles with maqashid shariah. ESG has become a global standard for evaluating investment sustainability; however, its adoption in the Islamic finance context remains limited and unstructured. Using a qualitative exploratory approach and systematic literature review, the study identifies ESG indicators that align with the objectives of maqashid shariah and formulates a value-based conceptual risk assessment model. The findings indicate a strong synergy between ESG indicators and maqashid shariah, revealing significant opportunities for Islamic financial institutions to adopt this model in order to strengthen public trust and enhance global competitiveness.
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