ESG (environmental, social and governance) investing and shariah-compliant investing share similar objectives in that they promote stewardship and societal value creation. According to her, bringing together sustainable, responsible and Islamic investing methodologies can do much to invigorate the Islamic asset management industry and complement conventional strategies. She points out that shariah investing, like ESG investing, promotes responsible behaviour. Both funds have proven track records and that is an indication that Islamic and ESG funds can perform as well as conventional funds,” says Shahariah. Since most ESG and shariah investors are long-term and value investors, these funds do comparatively well over time,” she says.

Source: The Edge Markets August 20, 2020 03:22 UTC