KUALA LUMPUR, 22 October 2024 – INCEIF University today launched the ESG-i Assessment Platform, the first of its kind in the country to integrate Environmental, Social, and Governance (ESG) factors with Islamic principles, specifically designed for micro, small, and medium enterprises (MSMEs).
This innovative portal provides businesses, particularly the MSMEs with a comprehensive framework to assess and enhance their sustainability practices, aligning with both global ESG standards and Islamic values. By using this platform, MSMEs will not only improve their operations but also gain opportunities to access broader markets and attract investments to support their business growth.
The ESG-I Assessment Platform was launched at the 19th International Shari’ah Scholars Forum (ISSF 2024) by Minister in the Prime Minister’s Department (Religious Affairs) YB Senator Dato’ Setia Dr Haji Mohd Na’im Haji Mokhtar.
Developed in collaboration with Ficus Capital, a Malaysian venture capital firm that focuses on the convergence of Islamic and ESG values, the ESG-i Assessment Platform combines the Quadruple Bottom Line (QBL) concept of Planet, People, Profit, and Principle. This is to ensure a balanced approach to growth that is both ethical and sustainable. The launch comes at a time when global regulations and sustainability targets are increasingly placing pressure on businesses to adopt more responsible practices.
Highlighting the importance of Islamic finance in supporting global sustainability goals, YB Senator Dato’ Setia Dr Haji Mohd Na’im Mokhtar said, “Innovation and collaboration are key drivers of progress and success in our communities. The integration of ESG and Islamic finance is a logical step towards fostering responsible economic practices. INCEIF University’s ESG-i assessment tool will not only help businesses meet their Shariah obligations, but also position them to thrive in a sustainability-focused economy.”
ISRA Research Management Centre Deputy President Research Dr Marjan Muhammad said: “With MSMEs contributing nearly 40 per cent to Malaysia’s GDP, it is crucial for these businesses to adopt sustainable practices. The ESG-i assessment tool simplifies the complexities of sustainability frameworks, hence assisting MSMEs to easily navigate the evolving global landscape while remain compliant with Shariah principles.”
The launch of the ESG-i assessment platform at ISSF 2024 represents a significant milestone for both INCEIF University and the Islamic finance industry. It signals a commitment to supporting MSMEs in navigating the complexities of sustainability and ensuring they remain competitive in a global market that increasingly values responsible business practices. With the ESG-i portal, businesses can access tailored insights to improve their operations, meet sustainability targets, and contribute meaningfully to Malaysia’s sustainability goals.
Ficus Capital Co-founder and Managing Partner Abdullah Hidayat Mohamad said companies with better governance tend to be more sustainable and perform well, and that there was a big overlap between Shariah and ESG principles.
The assessment tool goes beyond typical corporate standards, ensuring that businesses not only meet ESG criteria but also maintain ethical business practices that align with Shariah principles. The new portal provides a comprehensive and accessible tool for MSMEs to assess their sustainability practices, helping them position themselves as responsible and forward-thinking enterprises. It also offers guidance to help businesses transition to sustainable models, focusing on areas like waste management, energy use, and Shariah-compliant governance structures.
The premium subscription of the ESG-i assessment platform offers enhanced features and capabilities, including access to an interactive dashboard for a more in-depth and tailored experience. MSMEs can better align with global sustainability standards by utilising detailed analytics on sustainability performance, receiving a personalised ESG-i score, and enjoying discounts on online conferences, courses, and training. The premium subscription is priced at RM500 per year.
In line with its mission to support MSMEs, INCEIF University is collaborating with key partners, including Yayasan Hijau Malaysia, TheNoor and Penjana Eko to help onboard businesses and encourage the adoption of the ESG-i assessment tool among MSMEs.
The two-day ISSF is an annual conference that gathers prominent Shariah scholars, regulators, industry practitioners and academicians from key Islamic finance jurisdictions worldwide. The primary objectives of the ISSF encompass the promotion of Islamic finance, harmonisation of Shariah scholars’ interpretation and fostering mutual understanding and respect among the scholars and practitioners. It stands as a high-level forum providing access to scholarly deliberations critical Shariah issues, operational challenges, and opportunities within the global Islamic finance land scape.
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Source: TV AlHijrah