Analysis of Fiqh Principles, Maqashid Shariah, and ESG Concepts in Islamic Banks
Sandy Rizki Febriadi, Zaini Abdul Malik, Ifa Hanifia Senjiati

UNISBA (Universitas Islam Bandung), Indonesia

Abstract

The advancement of digital transformation in the modern era has brought rapid and significant changes in the operations of Islamic banks, including their risk management practices. However, the integration of Islamic values, such as fiqh principles and maqashid shariah, with global sustainability concepts like Environmental, Social, and Governance (ESG), remains suboptimal. This poses challenges for Islamic banks in maintaining shariah compliance while enhancing their global competitiveness. The urgency of this research lies in the need for a holistic approach that combines shariah elements and ESG in managing risk in the digital era. This research aims: first, to analyze the implementation of fiqh principles and maqashid shariah in Islamic bank risk management- second, to explore the relevance and contribution of ESG concepts to Islamic bank risk management in the digital era- third, to develop an integrative framework combining fiqh principles, maqashid shariah, and ESG as guidelines for risk management. The research uses a qualitative methodology comprising literature analysis, case studies, and in-depth interviews with shariah experts and Islamic banking practitioners. Empirical data will be gathered from Islamic banks that have begun adopting ESG concepts in their operations. With this holistic approach, the research is expected to significantly contribute to strengthening the competitive advantage of Islamic banks amidst global challenges.

Keywords: Fiqh Principles, Maqashid Shariah, ESG

Topic: Economic Welfare in Terms of Islamic Perspective