“Shariah-compliant businesses shown to rate more highly in ESG than conventional firms” – Salaam Gateway – September 3, 2020

On September 3, 2020 Salaam Gateway reported that “Shariah-compliant companies generally punch above their weight in the three central measures of environmental and societal impact, based on an analysis by asset management firm Arabesque carried out for Salaam Gateway.

The review of 7,626 publicly listed corporations based on data taken on July 22 found that the 2,407 that comply with the standards laid down by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) scored better than the overall group in 19 out of 22 environmental, social and corporate governance (ESG) categories.

Yet there is still a number of areas where there is room for them to improve.

In terms of the performance of specific business elements which contribute to the United Nations Global Compact and ESG scores, it is clear that Shariah companies perform a little less favourably in their approach to environmental solutions, community relations, and corporate governance.”

You may read the article on the Salaam Gateway internet site.