Islamic investment screens may provide a way to overcome ESG data limitations in emerging markets

  • Unsophisticated application of ESG screening that excludes entire countries or applies developed market ESG standards to emerging & frontier markets may constrain the new funding needed to achieve the Sustainable Development Goals
  • Alternative investment screening methods, including some that are a product of the Shariah screening process, can help investors to narrow their investable universe in the absence of ESG data
  • Over time, the growth of green, social, sustainable and sustainability-linked (GSSS) bond & sukuk issuance will improve and incentivize ESG data generation at the same time as ‘baseline’ international sustainability standards come into force to address the underlying data gaps

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Blake Goud

Blake Goud

Promoting adoption of responsible finance in Islamic markets & Islamic finance. CEO @RFIFoundation.