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

Islamic finance and ESG investing share a natural alignment rooted in shared values of social justice and harm avoidance, according to Maybank's first-ever chief sustainability officer.

Shahril Azuar Jimin told Fortune that the principles underpinning Islamic finance — emphasizing welfare, social equity, and the prohibition of harmful activities — map directly onto the environmental, social, and governance framework gaining traction in global markets. The numbers back this up: sustainable finance raised across the 57 member countries of the Organization of Islamic Cooperation surged from $17.8 billion in 2017 to $82.3 billion in 2024, according to a World Bank report.

Banks across the Middle East and Southeast Asia are increasingly embracing Islamic finance products to serve Muslim populations. Maybank offers a range of Islamic banking services, from deposits and financing to Wasiat, an Islamic equivalent of a will. The growth reflects both demographic demand and a broader shift toward values-based investing worldwide.

The convergence of Islamic finance and ESG represents a significant opportunity for investors seeking ethically aligned returns. Both frameworks exclude sectors like gambling, alcohol, and weapons, and both prioritize community welfare over pure profit maximization.

**What This Means For You:** If you're an investor interested in ethical or values-based investing, Islamic finance products offer another avenue worth exploring — even if you're not Muslim. The overlap with ESG principles means these instruments can serve dual purposes: aligning your portfolio with your values and accessing a rapidly growing segment of global finance. Expect more cross-pollination between these two frameworks as both markets expand.