Constructing an environmental, social, and governance (ESG) index for Islamic social finance institutions: Empirical investigation from Indonesia

Ryandono, Muhammad Nafik Hadi and Widiastuti, Tika and Mawardi, Imron and Al Mustofa, Muhammad Ubaidillah and Robani, Anidah and Fanani, Sunan and Dewi, Eka Puspa and Atiya, Nikmatul and Rusanti, Ega and Nisa, Mir'atun (2024) Constructing an environmental, social, and governance (ESG) index for Islamic social finance institutions: Empirical investigation from Indonesia. Journal of Ecohumanism, 3 (4). pp. 2620-2645. ISSN 2752-6798

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Official URL: https://ecohumanism.co.uk/joe/ecohumanism/article/...

Abstract

This study constructs an index to measure the performance of Islamic Social Finance (ISF) Institutions based on Environmental, Social, and Governance (ESG) dimensions. This quantitative research employs the Delphi Analytical Network Process (DANP) and Multistage Weight Index (MWI). The index is constructed using DANP, conducting empirical assessments using MWI, then developing indicators using Focus group discussion (FGD), in-depth interviews, and structured surveys. This study also empirically tests index's implementation on five ISF institutions in Indonesia. The high score of the governance factor in this study indicates that the five ISF institutions are still focused on enhancing governance. This ESG index for ISF institutions create in this research may cannot be applied generally to other nations or institutions. But this ESG-building indicators still can be utilized as a reference for adopting ESG in other institutions. This study contributes to the literature by creating an ESG index for ISF institutions, where more research is needed. The notion of ESG is connected to maqashid sharia and is particularly essential in how institutions execute good governance and social issues while focusing on environmental protection.

Item Type:	Article
Uncontrolled Keywords:	D-ANP, ESG, Index, ISF, Indonesia
Divisions:	Institute of Technology Management And Entrepreneurship
Depositing User:	Sabariah Ismail
Date Deposited:	09 Oct 2024 16:53
Last Modified:	09 Oct 2024 16:53
URI:	http://eprints.utem.edu.my/id/eprint/28114
Statistic Details:	View Download Statistic

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