Alignment of Islamic Banking Sustainability Indicators with Sustainable Development Goals: Policy Recommendations for Addressing the COVID-19 Pandemic

Abstract

This study aims to establish the link of key Islamic banking sustainability indicators with the United Nations’ Sustainable Development Goals (UN SDGs) as a policy recommendation for sustainable development and to mitigate the distressing impacts of the COVID-19 pandemic on the triple bottom line (people, planet, and profit). To identify the key Islamic banking sustainability indicators, the authors selected the most cited sustainability measurement indexes in Islamic banking. Initially, the indexes were divided into 10 broader themes, and then the key Islamic banking sustainability indicators were shortlisted from each theme based on their high-frequency distribution. The shortlisted sustainability indicators were then ratified to be in line with Islamic philosophy based on “Maqasid al-Shariah” (objectives of Shariah) and were subsequently grouped into the three dimensions of economic, environmental, and social sustainability based on the axial coding method. Finally, the categorized sustainability indicators were aligned with the relevant UN SDGs through the axial coding method for policy formulation, and respectively 12 propositions were developed for policy formulation. This study labeled the methodological process of this study as the ECA method (exploration, categorization, alignment). The new ECA method offers a reverse extension in the “SDG compass” developed by the Global Reporting Initiative (GRI) for aligning business policies with the UN SDGs. The process of aligning Islamic banking sustainability indicators with the UN SDGs will provide a roadmap to recovery from the COVID-19 pandemic in terms of economic, environmental, and social issues. Due to the diversity of the UN SDG framework, it covers multiples aspects for sustainable development. Therefore, considering the UN SDGs in terms of various banking instruments will mitigate the multiple distressing impacts of COVID-19 on the triple bottom line (people, planet, and profit), it will also promote a sustainable development agenda.

Does adoption of ISO 56002‐2019 and green innovation reporting enhance the firm sustainable development goal performance? An emerging paradigm

“…This research categorised 17 SDGs into three main pillars of sustainability (Figure 1), that is economic, environmental, and social (Dalampira & Nastis, 2020; Jan et al, 2021), which depict the contribution of green innovation reporting towards SDG and sustainability. Mapping the green innovation activities with 17 SDGs will also enhance firm sustainability and directly contribute to Decent Work and Economic Growth (SDG 8); Industry, Innovation and Infrastructure (SDG 9); Responsible Consumption and Production (SDG 12), Climate Action (SDG 13) founded by author Zhou et al (2020) due to the operational activities of business and indirectly contribute to the other SDGs such as Promote peaceful and inclusive societies (SDG16), Life on land (SDG15), Life below water (SDG14), sustainable cities and communities (SDG11), Affordable clean energy (SDG7), Clean water and sanitation (SDG6) and Good health and well‐being (SDG3).…”

Exploring CSR Initiatives to Cultivate and Nurture Values in Facing Issues Related to Drugs Abuse Among the Youth in Malaysia: Using Three Core Components of Triple Bottom Line (TBL)

“…CSR is beset by a plethora of definitions derived from various sources. CSR has been defined as business's overall contribution to sustainable development, which is defined as economic progress that does not jeopardise future generations' ability to meet their requirements (Jan & Marimuthu, 2015;Jan, Marimuthu, bin Mohd, & Isa, 2019;Jan, Marimuthu, & Hassan, 2019;Jan, Marimuthu, Pisol, Isa, & Albinsson, 2018;Jan et al, 2021). CSR could be a crafty way to sell more about the organisations or the ideas of a certain campaign.…”

Employment of Ex-Drug Addicts as a Corporate Social Responsibility Initiative: The Malaysian Employer’s Perspective

“…This study proposes a new three-step framework for the employment of ex-drug addicts in line with the ECA method (Exploration, Categorisation and Alignment). The ECA method was developed by Jan et al (2021), for the alignment of sustainable business practices with Sustainable Development Goals. The ECA method allows a company to streamline its sustainability practices and to increase its compliance with the SDGs.…”

“…This study based on the axial coding paradigm (refer to appendix Table A) made the alignment of the categorised sustainability items with SDGs (01, 02,03,04,05 and 16). It is because as per (Jan et al, 2021), these SDGs are purely related to social sustainability. Further, this study anticipates that the hiring of ex-drug addicts will ensure their financial needs, which will reduce their poverty level and as a subset they would be able to pay for their food, health and education.…”

“…The world is recurrently facing extreme social challenges of high impact (Jan et al, 2021). Social challenges include extreme human rights violation, child labour, forced labour, large scale involuntary migration, human trafficking, gender equality, and rehabilitation of ex-drug addicts, among others (Potrikeeva et al, 2017).…”