Socialization of Implementation of Social and Environmental Governance (Esg) in Sustainable Financing of Islamic Banking from an Islamic Perspective

Abstract

In order to improve the services of Islamic banking institutions in their operational activities, especially in providing sustainable financing to environmentally friendly customers by implementing Environmental Social Governance, this service is the result of collaborative field research and documentaries to answer questions chronologically and systematically about the implementation of Environmental Social Governance (ESG) in sustainable financing while intensively and comprehensively reviewing the review of the maqashid sharia of Asy-Syathibi's thoughts.
This research is a field research. The research method used in this study is an inductive method that starts from empirical data equipped with data related to the discussion of environmental social governance in sustainable financing through descriptive analytical review and tracing, namely presenting and explaining data related to the main discussion of the concept and principles of ESG, then comprehensively describing the planned and sustainable action efforts carried out on sustainable financing provided by Bank Syariah Indonesia, using a normative legal approach. The data management technique used with the analysis method using analyzing the review of the maqashid sharia of Imam as-Syatibi's thoughts equipped with a verification model of applicable regulations.
The results of the research are maximally attempted to achieve the research objectives, including being able to contribute to the thinking and development of science for the academic community of universities in general and in particular the academic community of IAIN Kediri in the field of Islamic banking and in particular the development of a review of the perspective of maqashid sharia related to environmental social governance in sustainable financing, as well as increasing the insight and discourse of all related parties (stakeholders) of Islamic banking in terms of funding or financing that implements ESG not only to pursue profit alone, but also to pay attention to the aspect of benefits for the environment, society, and government, and in particular as input for Islamic banking institutions to always implement environmental social governance in their operational activities. Green investment is analyzed with an Islamic review based on al-dhuriyat al-khams in order to form laws that emphasize protecting religion (hifzh al-din), guarding the soul (hifzh al-nafs), guarding the mind (hifzh al-'aql), guarding offspring (hifzh al-nasl), and guarding property (hifzh hifzh al-mal) according to the verse ar-Rum 41 and al-Baqarah: 22, Al-A’raf: 56.