Title : Constructing an Environmental, Social, And Governance (ESG) Index for Islamic Social Finance Institutions: Empirical Investigation from Indonesia
Authors:
- Muhammad Nafik Hadi Ryandono
- Tika Widiastuti
- Imron Mawardi
- Muhammad Ubaidillah Al Mustofa
- Anidah Robani
- Sunan Fanani
- Eka Puspa Dewi
- The Pleasure of Atiya
- Ega Rusanti
- The Blessing of Nisa
Department : Islamic Economics
Journal Name : Journal of Ecohumanism
Kinds of Journal : Q3
Keywords : D-ANP, ESG, ISF, Index, Indonesia
Abstract:
This study constructs an index to measure the performance of Islamic Social Finance (ISF) Institutions based on Environmental, Social, and Governance (ESG) dimensions. This quantitative research employs the Delphi Analytical Network Process (DANP) and Multistage Weight Index (MWI). The index is constructed using DANP, conducting empirical assessments using MWI, then developing indicators using Focus group discussions (FGD), in-depth interviews, and structured surveys. This study also empirically tests index's implementation on five ISF institutions in Indonesia. The high score of the governance factor in this study indicates that the five ISF institutions are still focused on enhancing governance. This ESG index for ISF institutions created in this research may not be applied generally to other nations or institutions. But these ESG-building indicators can still be utilized as a reference for adopting ESG in other institutions. This study contributes to the literature by creating an ESG index for ISF institutions, where more research is needed. The notion of ESG is connected to maqashid sharia and is particularly important in how institutions execute good governance and social issues while focusing on environmental protection.
For details : https://doi.org/10.62754/joe.v3i4.3781
