scholarly journals Sustainable Banking: New Forms of Investing under the Umbrella of the 2030 Agenda

2020 ◽  
Vol 12 (5) ◽  
pp. 2096 ◽  
Author(s):  
Mariano Méndez-Suárez ◽  
Abel Monfort ◽  
Fernando Gallardo
Keyword(s):  
Social Impact ◽  
Positive Impact ◽  
Socially Responsible ◽  
Public And Private ◽  
Responsible Investment ◽  
Valuation Model ◽  
2030 Agenda ◽  
Socially Responsible Investments ◽  
Social Impact Bonds ◽  
Investment Portfolios

(1) Social Impact Bonds (SIBs) foster the relationships between public and private sectors while adding value to new forms of investment that are closely linked to Socially Responsible Investments (SRIs). In this context, Sustainable Developments Goals (SDGs) aim to strengthen global partnerships in order to achieve the 2030 Agenda. Sustainable banking should consider its role in both new responsible investment products and the 2030 Agenda. This study aims to: (i) estimate the ROI of SIBS, (ii) define a financial formulation and a measurement system, and (iii) explain the relationship between SIBs and SDGs. (2) This research analyzes SIBs from an SDG approach, and proposes a valuation model based on a financial options valuation methodology that clarifies the financial value of the world’s first SIB (Peterborough Prison, UK). (3) Findings suggest that investors expect to have a negative return of 16.48%, and that this expected loss may be compensated for by the short- and long-term positive impact of an intervention in society. (4) It is shown that SIBs provide an opportunity to reach SDG 17 and improve sustainable investment portfolios, while providing an opportunity to strengthen a company’s Corporate Social Responsibility policy and its corporate reputation.

scholarly journals Islamic Bonds (Sukuk) in Malaysia

ICR Journal ◽  
2015 ◽  
Vol 6 (4) ◽  
pp. 489-508
Author(s):  
Inam Ullah Khan
Keyword(s):  
Middle East ◽  
Social Impact ◽  
Socially Responsible Investment ◽  
Secondary Market ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Social Impact Bonds ◽  
Sustainable And Responsible Investment

This article introduces the various types of sukuk that exist in the Malaysian secondary market. The Malaysian sukuk market was initially debt-based which attracted criticism from the Shariah scholars from the Gulf and Middle East. However, the Malaysian sukuk market made a turn towards equity and ijarah sukuk and ventured into “green sukuk” or socially responsible investment (SRI) sukuk. To facilitate the financing of sustainable and responsible investment initiatives, the Securities Commission of Malaysia (SC) has launched the Sustainable and Responsible Investment (SRI) sukuk Framework in 2014. The introduction of the SRI sukuk framework is seen to be in line with the rising trend of “green bonds” and “social impact bonds” that have been introduced globally to facilitate and promote sustainable and responsible investing. The writer has presented different examples from both regions to show that the gap has been bridged. However, despite this convergence the author recommends a revisit of the controversial debt-based instruments by Malaysian Shariah scholars.  

scholarly journals Exploring Potentials of Philanthropic Islamic Financial Instruments in Providing Healthcare Services for Underprivileged

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 239-260
Author(s):  
Rusni Hassan ◽  
Khairul Fikry Jamaludin ◽  
Mohamad Benaicha
Keyword(s):  
Social Services ◽  
Social Impact ◽  
Relevant Literature ◽  
Healthcare Services ◽  
Healthcare Sector ◽  
Financial Instruments ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Ethical Finance ◽  
Social Impact Bonds

Philanthropic financial instruments utilize donated funds or assets in order to deliver social services for society. NGOs may not be able to operate the social services efficiently in the absence of such funds. Lately, there are plenty of organizations that have taken initiatives to render social services for targeted populations in order to curb social problems such as poverty, hunger, crimes, etc., through the use of some forms of philanthropic instruments including Islamic social finance, ethical finance, and others. Today, however, philanthropic financial instruments such as socially responsible investment (SRI), social impact bonds (SIB), and even Waqf are issued by financial institutions rather than socially driven institutions. As such, they have been treated as commercial financial instruments rather than socially driven mechanisms. This paper aims to elucidate the potentials of selected modern financial philanthropic instruments that deal with the healthcare sector. The strengths and weaknesses of the selected instruments will be assessed to explore their potentials in serving the healthcare services sector particularly for the underprivileged. The healthcare sector is highlighted as the focus of this study due to its relevance to the present challenge of the Covid-19 pandemic. This is an exploratory study that adopts the qualitative method whereby a rigorous review of the relevant literature is conducted to examine the potential that philanthropic Islamic financial instruments can offer in providing healthcare services to the underprivileged. The findings elaborate on three important models of philanthropic instruments, namely social impact bonds (SIB), development impact bonds (DIB), and takaful-waqf models. It was also found that these philanthropic instruments have varied strengths and weaknesses that require rectification in the future.

scholarly journals IMPLEMENTING ESG CONCEPT IN SHARIA STOCK SCREENING PROCESS

2021 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Rifka Mustafida ◽  
Najim Nur Fauziah
Keyword(s):  
Social Impact ◽  
Social Dimension ◽  
Investment Portfolio ◽  
Socially Responsible ◽  
Screening Process ◽  
Responsible Investment ◽  
Good Corporate Governance ◽  
Stock Screening ◽  
Almost All ◽  
Sustainability Report

Islam places great importance on moral, environmental and social dimension. Sustainable development is centric to the overlapping factors both Islamic finance and Socially Responsible Investment, which are the economy, the environment and social impact. In contrary, Empirical evidence concerning ESG practice of IFIs and Sharia compliant companies is still lacking. The investment portfolio should therefore be scrutinized on the criteria of justice, social welfare and sustainability. This paper aims to identify sustainability report of Sharia Stocks companies and propose i-ESG index for sharia stocks screening in Indonesia. A qualitative study is used to describe sustainability action doing by Sharia compliant companies listed on Indeks Saham Syariah Indonesia (ISSI) in October 2019. This study found that, almost all the companies shows their Good Corporate Governance, but only a few of company have their sustainability report. Therefore a novel parameter to screen the sharia stocks screening process is urgently needed.  

The Market for Socially Responsible Investments

2020 ◽  
pp. 171-188
Author(s):  
Mark Anthony Camilleri
Keyword(s):  
Financial Markets ◽  
Positive Impact ◽  
Socially Responsible Investing ◽  
Future Research ◽  
Socially Responsible ◽  
Responsible Investing ◽  
Socially Responsible Investments ◽  
The Subject ◽  
Public Organisations ◽  
Sustainable Investments

This chapter explains how socially responsible investing (SRI) has evolved in the last few decades and sheds light on its latest developments. It describes different forms of SRI in the financial markets and deliberates on the rationale for the utilisation of positive and negative screenings of listed businesses and public organisations. It also presents key theoretical underpinnings on the subject and reports that the market for the responsible investments has recently led to an increase in contractors, non-governmental organisations (NGOs), and research firms who are involved in the scrutinisation of the enterprises' environmental, social, and governance (ESG) credentials. This contribution raises awareness on the screenings of positive impact and sustainable investments. It puts forward future research avenues in this promising field of study.

Developing the socially responsible investment practice in the context of national economic security

2021 ◽  
Vol 20 (10) ◽  
pp. 1914-1932
Author(s):  
Natal'ya A. KHUTOROVA ◽  
Andrei O. KHUTOROV
Keyword(s):  
Business Models ◽  
Economic Security ◽  
Socially Responsible Investment ◽  
The State ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Raising Awareness ◽  
National Economic ◽  
Investment Portfolios ◽  
Key Participants

Subject. The article addresses the issue of sustainable and socially responsible investment in the context of economic security. Objectives. The aim is to prove a hypothesis that the development of the practice of socially responsible investment can be considered as one of factors in strengthening the economic security of the State. Methods. We employ general scientific research methods. Results. We analyze the main indicators of the development of the socially responsible investment market in the world and in Russia, systematize key participants of the market, their functions and role in ensuring the economic security of the State and company. We offer a number of areas for the development of socially responsible investment, which will contribute to strengthening the economic security, including raising awareness of the financial community about sustainable financing and formation of new behavioral patterns of investment portfolios; incorporating ESG instruments in the monetary policy of the Bank of Russia; developing incentive mechanisms for companies that actively use ESG principles in their business models, formulating international initiatives and standards for ESG financing in the EAEU. Conclusions. In the current financial market conditions and active transformation of business models, the influence of ESG factors will increase. It will stimulate the development of the market for socially responsible investment and contribute to economic security strengthening. The proposed measures can be integrated into the process of formulating a long-term strategy of socio-economic development of the Russian Federation.

Sustainable and socially responsible investing

Humanomics ◽  
2013 ◽  
Vol 29 (3) ◽  
pp. 164-186 ◽  
Author(s):  
Saeed BinMahfouz ◽  
M. Kabir Hassan
Keyword(s):  
Systematic Risk ◽  
Value Systems ◽  
Socially Responsible ◽  
Screening Process ◽  
Content Type ◽  
Responsible Investment ◽  
Sustainability Criteria ◽  
Fama And French ◽  
Investment Portfolios ◽  
The Impact

PurposeThere is a great deal of research that has been done to investigate the investment characteristics of conventional socially responsible investment portfolios compared to their broader conventional counterparts. However, the impact of incorporating sustainability criteria into the traditional Sharia screening process has not so far been investigated. Therefore, the study aims to give empirical evidence as to whether or not incorporating sustainability socially responsible criteria in the traditional Sharia screening process has a significant impact on the investment characteristics of the Islamic investment portfolio.Design/methodology/approachThe paper examines the investment characteristics of four groups of investment portfolios mainly, Dow Jones Global Index, Dow Jones Sustainability World Index, Dow Jones Islamic Market World Index and Dow Jones Islamic Market Sustainability Index. To improve the robustness of the study, the analysis was carried out at different levels. First, absolute mean return and t‐test were used to examine whether the difference between the different groups of investments is statistically significant or not. Second, risk adjusted equilibrium models, both single‐index and Fama and French multi‐index, were employed. This is to control for different risk exposure and investment style bias associated with different investment portfolios examined.FindingsThe paper finds that neither the Sharia nor the sustainability screening process seems to have an adverse impact on the performance and systematic risk of the investment portfolios compared to their unrestricted conventional counterparts. Therefore, Muslim as well as socially responsible investors can choose investments that are consistent with their value systems and beliefs without being forced to sacrifice performance or expose to higher systematic risk.Originality/valueThe study contributes to the existing literature by giving new evidence on the impact of incorporating sustainability criteria into the traditional Sharia screening process that has not so far been investigated.

scholarly journals A Brief Review of Responsible AI and Socially Responsible Investment in Financial and Stock Trading

2021 ◽  
Author(s):  
A. K. M. Amanat Ullah ◽  
Samiha Sultana ◽  
Fahim Faisal ◽  
Md. Muzahidul Islam Rahi ◽  
Md. Ashraful Alam ◽  
...  
Keyword(s):  
Ethical Decision Making ◽  
Research Work ◽  
Machine Learning Techniques ◽  
Future Research ◽  
Socially Responsible ◽  
Research Directions ◽  
Responsible Investment ◽  
Learning Techniques ◽  
Socially Responsible Investments ◽  
Future Research Directions

Automated trading is used in most of the major markets of our world. In order to ensure sustainable development, incorporating ethical and socially responsible ideas while designing these Artificial Intelligence (AI) systems has become a necessity. Both the industry and the academia are working towards Responsible AI, which can make Socially Responsible Investments (SRI). This paper reviews the research on SRI investment in the financial sector and evaluates these methods, which can help find future research directions in Computational Finance. This survey looks at the machine learning techniques used for ethical decision-making while stock or forex trading, which will benefit any further research work on Responsible AI in Finance.<br>

scholarly journals TRENDS IN THE DEVELOPMENT OF SOCIALLY RESPONSIBLE INVESTING IN THE WORLD: THEORETICAL AND PRACTICAL ASPECTS

2020 ◽  
pp. 74-83
Author(s):  
Maryna Dielini
Keyword(s):  
Statistical Study ◽  
Socially Responsible Investing ◽  
Scientific Article ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Historical Factors ◽  
Socially Responsible Investments ◽  
The World ◽  
The Subject

The subject of this scientific article is the theoretical study of socially responsible investment (SRI) and development in the world and countries of Europe. The purpose of the research is to study the essence of socially responsible investing, its strategies and to analyze statistically the development of socially responsible investing in the world and in Europe in particular. Research methods. The methods of synthesis, analysis, comparison, generalization, statistical data processing, graphical and tabular methods of presentation of scientific results were used. The result of the work is a theoretical and statistical study of the subject of the article. The essence of socially responsible investing is defined as investing in socially responsible entrepreneurships with the purpose of profit. Historical factors of socially responsible investing have been investigated, among which the religious aspect and the increasing importance of human values have been highlighted. Have been described main strategies that investors use in decision-making process about financing companies or projects, outlined their differences and purposes. On the basis of abovementioned, a statistical study was conducted to analyze the overall status of the SRI in the world, what strategies are most represented and to explore more deeply the state of development of SRI in Europe, as the region with the highest volume of SRI. The results of the research can be used by companies that search an outside investor or, conversely, invest in other businesses to understand the request of today’s business society. Taking into account the world experience will allow to increase the company's own image and a positive effect on the society and the environment. Conclusion. Socially responsible investments are gaining ground in the world, as this is required by the global community. Entrepreneurs understand the importance of earning socially responsible profits, which is generated by investing in responsible enterprises and projects.

scholarly journals “A Study On The Sustainable Investment Funds With Sepcial Reference To State Bank Of India Esg Mutual Fund Shcemes”

2021 ◽  
Vol 12 (6) ◽  
pp. 261-266
Author(s):  
Dr. A. Anis Akthar Sulthana Banu Et.al
Keyword(s):  
Mutual Fund ◽  
Social Impact ◽  
Secondary Data ◽  
Investment Portfolio ◽  
Socially Responsible ◽  
Equity Fund ◽  
Investment Funds ◽  
Responsible Investment ◽  
Sustainable Investment ◽  
Secondary Data Sources

Socially Responsible Investment (SRI) refers to the allocation of funds in certain practises that have a high social impact. It includes assessing businesses on the Environmental , Social and Governance (ESG) screens. A socially conscious investor may either invest directly in financial markets or through investment instruments such as mutual funds via ESG fund schemes. Very few of the numerous mutual fund organizations have implemented ESG Fund schemes to appeal to SRI investors. The SBI Mutual Fund is the first AMC to follow this and has been benchmarked against the Nifty 100 ESG indices. A correlation analysis is made among the results of the SBI Mutual Fund and the NIFTY to compare the four different types of SBI ESG funds and their sector wise participation in different industries. This research paper is methodological in nature as it interprets the published secondary data sources of the SBI Mutual Fund and the NIFTY indices. The goal of this paper is to assess the efficacy of the ESG Equity Fund in the investment portfolio of mutual fund investors and to enable small and medium-sized investors to contribute their money to ESG-driven mutual fund schemes.

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