Islamic finance aligns naturally with ESG, says Maybank’s first-ever chief sustainability officer

Islamic finance covers roughly $2.8 trillion in assets worldwide, yet only a sliver of sustainable loans today are Shariah-compliant. But Datuk Shahril Azuar Jimin, Maybank’s chief sustainability officer, thinks that gap should be easy to fill. 

“Islamic finance and sustainable finance are both values-based systems,” Shahril tells Fortune. “Islamic finance emphasizes social justice, welfare, and the avoidance of harm, and these three principles align naturally with ESG and sustainability.”

Banks across the Middle East and Southeast Asia are embracing Islamic finance in order to better serve Muslim populations. Maybank, for example, offers Islamic banking products ranging from Islamic deposits and financing to Wasiat (Islamic legacy planning) across five markets: Malaysia, Indonesia, Singapore, London and the Middle East.

Last November, Maybank and the government of Sabah, a Malaysian state on the island of Borneo, agreed to work together on the world’s first “blue sukuk,” designed to finance marine conservation, sustainable fisheries and coastal ecosystem restoration. Sukuk are bonds that comply with Islamic law; rather than pay interest, sukuk instead offer buyers a time-limited share in the profits of a particular asset. Sabah holds 60% of Malaysia’s mangroves, offering significant potential for blue carbon credit generation.

Malaysia has highlighted the blue economy as a priority area in its most recent economic plan, which outlines the nation’s policy objectives through 2030. The country is launching a blue........

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