Shariah-compliant businesses shown to rate more highly in ESG than conventional firms
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.
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