Writers: Fauzias Mat Nor, Muhammad Ridhwan Ab Aziz, Nur Ainna Ramli, Syahidawati Hj Shahwan, Ainulashikin Marzuki, Yazis Ali Basah, Hisham Sabri, Nurul Atika Azzan, Nur Ainina Mohd Soha

Price: RM 50.00
 
ISBN: 9786297636719
 
Publication Year: 2024
 
Pages: 127 pp.
 
The Maqasid al-Shariah in Responsible Investment (MSRI) index is designed to align investment practices with the principles of Maqasid al-Shariah (the objectives of Islamic law) while incorporating contemporary standard of responsible investment.

This framework is based on the teaching of prominent Islamic scholars such as Al-Ghazali and Ibn Ashur, and its focuses on integrating these teachings into modern investment strategies, particularly in the realm of Environmental, Social, and Governance (ESG) criteria.

Al-Ghazali’s five dimensions of Maqasid, which are the preservation of religion, dignity, intellect, life, and wealth were observed and the dimension is further divided into two primary categories.

The first category pertains to wealth, focusing on Ibn Ashur’s concept of wealth preservation. The second category addresses life, emphasizing sustainability, including environmental, social and governance (ESG) factors, along with Abu Zahrah’s concept of intellect preservation.

The framework is structured around eight themes with 45 element used to assess companies based companies based on their annual reports, sustainability reports, and public disclosures (e.g., website, news).

Companies receive disclosure points for addressing and committing to these issues. Scores are categorized into three classifications: Shariah compliant, Hajiyyat, and Shariah non-compliant.

This framework integrates Maqasid al-Shariah principles with responsible investment practices, particularly in PNB’s portfolio management and investment strategy, offering valuable guidance for Islamic investment policies.