IslamicFinance.de

Paper by Funds@Work regarding Islamic Finance vs. Sustainability from a network perspective insight; "Our aim was to show that we should never look at phenomena in an isolated manner. Islamic, ESG as well as conventional investors can greatly learn from each other by being more open. Islamic Finance should not be looked at from a religious perspective but rather from what it brings to the table from which ESG and conventional investors can profi t. Our fi nance and investment system globally will be more resilient if individual participants approach each other more openly and share ideas converging into a mainstream “sustainable fi nance system” which borrows the best of all worlds. From a network analytic perspective we should be aware that openness leads to greater innovation and stability and creates more opportunities to interact. In this context we need to address prejudices which stem from mere ignorance and act as barriers to cooperate. Because ultimately what the world needs is a greater integration of networks such as the Islamic Finance, ESG, and conventional investments communities to make their individual achievements accessible to a broader audience.

This up to date research summary by Funds@Work provides snapshots of their 2nd network analysis in the Socially Responsible Investment (SRI) space which took 10 months to complete. All institutional investors/asset owners are kept anonymous, the results of this short summary however are eye-opening for all market participants who want to get an idea of the state of socially responsible investments in countries like Germany, Switzerland, and Austria. The Austrian institutional investors who are part of this research and were identified as socially responsible investors (partially or fully managing their money in a sustainable manner) have 11,01 billion EUR AUM, the German investors altogether 510,13 billion EUR AUM, and the Swiss ones 214,56 billion EUR in AUM, amounting to 735 bn. EUR AUM altogether of which roughly 360bn. EUR are reported to be managed using sustainable criteria and using appropriate concepts.

Zawya, in partnership with Funds@Work, has enabled Islamic finance institutions to identify and connect to more than 300 Shari’ah scholars, who will also convene their own Shari’ah board.
The platform aims to facilitate Shari’ah governance through transparency and connectivity to the Shari’ah scholar landscape.
Amongst its functions, Zawya Shari’ah Scholars enables an institution to view scholars’ affiliations with one another, as well as to identify those that have already worked closely with the current members of its Shari’ah board.
Zawya Shari’ah Scholars feeds from the extensive data provided by Funds@Work to enable institutions to search over 300 scholars globally, to understand their affiliations and expertise, and connect to them. It also places further efficiency in the Shari’ah system by enabling institutions to identify partnerships with others that share similar Shari’ah boards. Sukuk structurers and investors are able to view and assess Sukuk approved by scholars; they specify and further understand their caveats and acceptances on structures.